PPRuNe Forums - View Single Post - Merged: Pel Air vs RFDS for the Air Ambulance contract in Australia
Old 4th Aug 2010, 12:21
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PPRuNeUser0161
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Basically all the traditional RFDS operations are conducted on a not for profit basis. Sure money is raised by various means to provide that service but there is no money left for profit, any excess cash is put towards the purchase of new equipment which is used to provide better or additional services.

They are not paid to do it. For instance a government department might fund a specific program, when the money runs out the program stops. The only people making money out of the RFDS are their suppliers and employees. Thats a charity. The reason they bid for contracts is to raise more money to help pay for the traditional ops. Boring as and totally un Pelair but thats it.

The reason they lose contracts is because they cant afford to lose money into any activity that is not part of the traditional operations, the board members just would not cop it. It must be clearly beneficial to the organisation and be in no way a liability because its not what they're about.
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