older/newer
The main problem with the charter market, both in the UK and in the US is that the paying client is unwilling to pay the proper rate for the job. The finance/depreciation costs on a $15M new aircraft against a good $5M used one is obviously 3 times. This finance cost is the biggest single hourly cost. Based on 600 hours a year utilisation the new aircaraft comes out at £1,350 per flying hour, the used £450 per hour. Sure, the new aircraft is going to be cheaper to maintain and be generally more efficient so knock off £200/Hr for the new aircraft. Are the clients willing to pay an extra £700Hr to charter a new aircraft? Some of the brokers here may be able to answer that one. I think not. Consequently no charter operator can afford to operate new equipment unless there is a hedge fund, sugar daddy, fractional scheme or rich individual underwriting the asset. Usely these people are in it for the wrong reasons, come into the market for a few years and leave when they find out that it is rather hard work and not the glitzy industry they thought it was when they were chartering instead of owning. These people do not put the true cost of owning an aircarft into the equation when putting their aircarft into the market. Therefor it is not a true market. I would love to buy a new aircraft but the market will not allow me to do it.