PPRuNe Forums - View Single Post - Not interested in Jet republic?
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Old 22nd May 2009, 17:46
  #236 (permalink)  
hawker750
 
Join Date: Jan 2007
Location: uk
Age: 75
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Merlinxx

The problem that nobody seems to accept is that our market is limited. One cannot persuad mum and dad and uncle cyril to alter their travel plans from 2 weeks in Palma for £700 to chartering a private jet. A massive newcomer to the market does not create new business he simply takes it from existing customers and almost all new starters undercut the market rate "just to get going". Our market does not earn enough as it is, the profit margin is 5% on a VERY good year if you are lucky. In 1988 when we bought our first HS 125 the charter rate was £1,600/Hr and I paid a Captain £25,000. and the fuel at LGW was 10p/ltr Now the rate is about £2,100 (and clients still try to knock you down). Captain £65,000 and fuel 45p/ltr. It does not make sense.
So tell me, what are JR coming into the market for because it cannot be profit motivated, so I guess it is a scam
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