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Owning vs. charter vs. airlines
There is usually a point where it is cheaper to do it yourself than have
someone else do it for you. What I'm wondering is what would that point be when it comes to trans-world air travel. When does buying your own jet and employing your own pilots make economic sense than using an airline? Or will the airlines always be cheaper? More specifically, let's say you have a number of employees in Fiji. Each gets four round-trip flights to anywhere in the world each year as part of their benefit package. Most will want to use at least one of those for the Christmas season to spend the holidays with family. There would also be an expected heavier usage of their flight options during the summer. The question I have is: How many employees would one need to have where buying a private jet and employing pilots would make economic sense? Would there also be a span between these two options where chartering a private jet would make economic sense? Scott Jensen -- Like a cure for A.I.D.S., Alzheimer, Parkinson, & Mad Cow Disease? Volunteer your computer for folding-protein research for when it's idle. Go to http://tinyurl.com/6fsdg to sign up your computer. |
#2
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In article ,
"Scott Jensen" wrote: There is usually a point where it is cheaper to do it yourself than have someone else do it for you. What I'm wondering is what would that point be when it comes to trans-world air travel. When does buying your own jet and employing your own pilots make economic sense than using an airline? Or will the airlines always be cheaper? More specifically, let's say you have a number of employees in Fiji. Each gets four round-trip flights to anywhere in the world each year as part of their benefit package. Most will want to use at least one of those for the Christmas season to spend the holidays with family. There would also be an expected heavier usage of their flight options during the summer. The question I have is: How many employees would one need to have where buying a private jet and employing pilots would make economic sense? Would there also be a span between these two options where chartering a private jet would make economic sense? Scott Jensen It is difficult to beat the airlines on price alone, especially for travel to well served locations that can be booked in advance. Hey, they are employees, they can ride in coach. Now, if you are routinely flying people between locations that are not well-served by the regular airlines and you do a lot of last minute travel and you have the right number of people who get first class or better tickets because they are important enough to get it whenever they want, then you might make an argument based on cost. If you want to know what it costs, just hit any of the on-demand jet travel websites on the net and get a quote for a charter. Fiji huh? |
#3
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In article ,
"Scott Jensen" wrote: There is usually a point where it is cheaper to do it yourself than have someone else do it for you. What I'm wondering is what would that point be when it comes to trans-world air travel. When does buying your own jet and employing your own pilots make economic sense than using an airline? Or will the airlines always be cheaper? More specifically, let's say you have a number of employees in Fiji. Each gets four round-trip flights to anywhere in the world each year as part of their benefit package. Most will want to use at least one of those for the Christmas season to spend the holidays with family. There would also be an expected heavier usage of their flight options during the summer. The question I have is: How many employees would one need to have where buying a private jet and employing pilots would make economic sense? Would there also be a span between these two options where chartering a private jet would make economic sense? Scott Jensen It is difficult to beat the airlines on price alone, especially for travel to well served locations that can be booked in advance. Hey, they are employees, they can ride in coach. Now, if you are routinely flying people between locations that are not well-served by the regular airlines and you do a lot of last minute travel and you have the right number of people who get first class or better tickets because they are important enough to get it whenever they want, then you might make an argument based on cost. If you want to know what it costs, just hit any of the on-demand jet travel websites on the net and get a quote for a charter. Fiji huh? |
#4
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"Scott Jensen" wrote in message ... There is usually a point where it is cheaper to do it yourself than have someone else do it for you. What I'm wondering is what would that point be when it comes to trans-world air travel. When does buying your own jet and employing your own pilots make economic sense than using an airline? Or will the airlines always be cheaper? More specifically, let's say you have a number of employees in Fiji. Each gets four round-trip flights to anywhere in the world each year as part of their benefit package. Most will want to use at least one of those for the Christmas season to spend the holidays with family. There would also be an expected heavier usage of their flight options during the summer. The question I have is: How many employees would one need to have where buying a private jet and employing pilots would make economic sense? Would there also be a span between these two options where chartering a private jet would make economic sense? I seriously doubt if private jets make economic sense for even 1% of the businesses that use private jets. The impression I get is that the ego factor is what mainly justifies private jets. Of course I certainly want one. |
#5
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On Fri, 1 Apr 2005 01:21:11 -0600, "Scott Jensen"
wrote: There is usually a point where it is cheaper to do it yourself than have someone else do it for you. What I'm wondering is what would that point be when it comes to trans-world air travel. When does buying your own jet and employing your own pilots make economic sense than using an airline? Or will the airlines always be cheaper? More specifically, let's say you have a number of employees in Fiji. Each gets four round-trip flights to anywhere in the world each year as part of their benefit package. Most will want to use at least one of those for the Christmas season to spend the holidays with family. There would also be an expected heavier usage of their flight options during the summer. The question I have is: How many employees would one need to have where buying a private jet and employing pilots would make economic sense? Would there also be a span between these two options where chartering a private jet would make economic sense? Scott Jensen I am pretty sure that private jet ownership will lose in a pure cost comparison. However, to make a fair comparison, one would have to consider many factors. What is the passenger's time worth? Is there convenient regular scheduled service? etc. A round trip first class ticket from the US to Europe can be upwards of $10,000 if purchased at the last minute. Or you could buy your own Boeing Business Jet for $40,000,000. Even if only used for one trip, the BBJ could have a net lower cost. If the passenger takes the commercial flight for $10,000 and the airline gets him there late and he loses the $4 billion dollar deal, then you can see why he would be better off spending the money for the BBJ. |
#6
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On Fri, 1 Apr 2005 01:21:11 -0600, "Scott Jensen"
wrote: There is usually a point where it is cheaper to do it yourself than have someone else do it for you. What I'm wondering is what would that point be when it comes to trans-world air travel. When does buying your own jet and employing your own pilots make economic sense than using an airline? Or will the airlines always be cheaper? More specifically, let's say you have a number of employees in Fiji. Each gets four round-trip flights to anywhere in the world each year as part of their benefit package. Most will want to use at least one of those for the Christmas season to spend the holidays with family. There would also be an expected heavier usage of their flight options during the summer. The question I have is: How many employees would one need to have where buying a private jet and employing pilots would make economic sense? Would there also be a span between these two options where chartering a private jet would make economic sense? Scott Jensen I am pretty sure that private jet ownership will lose in a pure cost comparison. However, to make a fair comparison, one would have to consider many factors. What is the passenger's time worth? Is there convenient regular scheduled service? etc. A round trip first class ticket from the US to Europe can be upwards of $10,000 if purchased at the last minute. Or you could buy your own Boeing Business Jet for $40,000,000. Even if only used for one trip, the BBJ could have a net lower cost. If the passenger takes the commercial flight for $10,000 and the airline gets him there late and he loses the $4 billion dollar deal, then you can see why he would be better off spending the money for the BBJ. |
#7
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If you had a lot of employees who all wanted to go to the same place,
it might make sense. Even then, I suspect that you would have to factor in the "convenience factor" quite a bit before the numbers worked out. |
#8
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If you had a lot of employees who all wanted to go to the same place,
it might make sense. Even then, I suspect that you would have to factor in the "convenience factor" quite a bit before the numbers worked out. |
#9
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"Mike" wrote in message ... On Fri, 1 Apr 2005 01:21:11 -0600, "Scott Jensen" wrote: There is usually a point where it is cheaper to do it yourself than have someone else do it for you. What I'm wondering is what would that point be when it comes to trans-world air travel. When does buying your own jet and employing your own pilots make economic sense than using an airline? Or will the airlines always be cheaper? More specifically, let's say you have a number of employees in Fiji. Each gets four round-trip flights to anywhere in the world each year as part of their benefit package. Most will want to use at least one of those for the Christmas season to spend the holidays with family. There would also be an expected heavier usage of their flight options during the summer. The question I have is: How many employees would one need to have where buying a private jet and employing pilots would make economic sense? Would there also be a span between these two options where chartering a private jet would make economic sense? Scott Jensen I am pretty sure that private jet ownership will lose in a pure cost comparison. However, to make a fair comparison, one would have to consider many factors. What is the passenger's time worth? Is there convenient regular scheduled service? etc. A round trip first class ticket from the US to Europe can be upwards of $10,000 if purchased at the last minute. Or you could buy your own Boeing Business Jet for $40,000,000. Even if only used for one trip, the BBJ could have a net lower cost. If the passenger takes the commercial flight for $10,000 and the airline gets him there late and he loses the $4 billion dollar deal, then you can see why he would be better off spending the money for the BBJ. How would the BBJ have a lower cost? Mike MU-2 |
#10
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"Mike" wrote in message ... On Fri, 1 Apr 2005 01:21:11 -0600, "Scott Jensen" wrote: There is usually a point where it is cheaper to do it yourself than have someone else do it for you. What I'm wondering is what would that point be when it comes to trans-world air travel. When does buying your own jet and employing your own pilots make economic sense than using an airline? Or will the airlines always be cheaper? More specifically, let's say you have a number of employees in Fiji. Each gets four round-trip flights to anywhere in the world each year as part of their benefit package. Most will want to use at least one of those for the Christmas season to spend the holidays with family. There would also be an expected heavier usage of their flight options during the summer. The question I have is: How many employees would one need to have where buying a private jet and employing pilots would make economic sense? Would there also be a span between these two options where chartering a private jet would make economic sense? Scott Jensen I am pretty sure that private jet ownership will lose in a pure cost comparison. However, to make a fair comparison, one would have to consider many factors. What is the passenger's time worth? Is there convenient regular scheduled service? etc. A round trip first class ticket from the US to Europe can be upwards of $10,000 if purchased at the last minute. Or you could buy your own Boeing Business Jet for $40,000,000. Even if only used for one trip, the BBJ could have a net lower cost. If the passenger takes the commercial flight for $10,000 and the airline gets him there late and he loses the $4 billion dollar deal, then you can see why he would be better off spending the money for the BBJ. How would the BBJ have a lower cost? Mike MU-2 |
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