PPRuNe Forums - View Single Post - What needs to be done/sign of things to come?-merged
Old 29th Jul 2007, 01:50
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kiwiblue
 
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What needs to be done/sign of things to come?-merged

I've been reading other threads regarding the viability/profitability of GA with interest... at least until they descend into little more than a slanging match.

It seems to me that there must be quite a few ideas out there of how GA could become a profitable and attractive proposition for both operators and staff... so that's my query. What are current GA operators getting right? What are they getting wrong? Where do you see room for improving the bottom-line to the benefit of all? How would you go about implementing/achieving your improvement?

Seems probably necessary to lay a few ground-rules for this discussion to proceed:
  • We're talking GA -piston and gas-turbine light singles & twins; not the White Rat, anything that starts with V or any of their ilk.
  • Wages/conditions (for all involved) whilst an important part of this discussion are not the be-all, end-all of the discussion. Keep in mind that these will come to an appropriate level as we get everything else right!
  • When talking costs, lets assume Direct Operating costs as our point of common ground, rather than charter/hire rates. For added commonality, let's further assume USD$ as our currency.
  • We all know that the current GA fleet is at/nearing it's 'use-by' date. What would you like to see the current fleet replaced with? In broad terms, what airframe types do you see as potential replacements for the current fleet?
  • What opportunities do you see out there that are not currently being pursued? In what way could existing services be improved?
That should be enough for a start!

For my part, I see the likes of the Cessna 208 Caravan and sub-variants having a strong role in the future of GA as it currently exists, perhaps supported by Pilatus PC-12 in the longer legs/IFR environment. DOC (C208) running at around USD$440ph according to the latest information I have to hand here from Cessna. Obviously both are gas-turbines, considerably younger aircraft than existing (hence lower anticipated maintenance costs, due less-likely unexpected maintenance issues), quieter which is a relatively major consideration in noise-sensitive areas and able to lift larger pax/freight loads on broadly similar DOC.

Where I see things going wrong at present; operators' attention to and concentration on what their direct competitors are charging for the same service. Wrong kiddies. Concentrate on your own knitting. Sure, it's about bums-on-seats, but what about how you are cutting your own throat to save the punters $5??? What about how you are creating/participating in a system that eventually winds up massively undervaluing the service you are offering??? Your staff are subsidising you and your punters!!! Why? Is there another industry you can point to within which this is a common accepted practice? At the end of the day, no matter what is being (realistically) charged, the punters will still be coming through the door. Perhaps it would be better to form a marketing association or some such and sell our products off-shore? Have the punters 'in our door' before they even reach our shores? Bye and large, our products sell themselves. The desire to take advantage of our offerings already exists before the opportunity does. We should be making the most of that!

The glaringly obvious exception to this in GA is to me the meat-bombers. Sure, many of them still run poorly maintained, very old piston airframes; but have a look at the top end of that segment... basically brand new gas-turbine gear in mint condition, works hard all day and makes damn good money for the operator. I've known jump-masters in the past that were on 3-4 times what I was earning!!! The pilots were on similar money to me, but again if the jump-masters are worth that much coin, surely so are the pilots.

OK, enough from me. Looking forward to how this discussion develops!
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