PPRuNe Forums - View Single Post - Is RACWA on finals? YOU WERE WARNED!!
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Old 2nd Dec 2010, 15:00
  #132 (permalink)  
htran
 
Join Date: Jun 2010
Location: Perth
Age: 47
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Fokker I don't agree with your opinion that "Only solutions for RACWA are:
Increase hire rates to sustainable levels (I'd say at least 35% increase)
Increase membership fee"

According to what the committee, it was the lack of hours that was the problem.

If you increase the hourly rate, it will result in reduction in demand, and make the problem worst.

Cut the fixed costs, cut the variable costs, make flying more affordable, and more people will fly. Reduced costs means higher contribution margins, more hours flown increases increased revenue. Increased revenue and reduced costs = high profits!

In relation to someone's opinion that costs should remain a confidential, I say bull$hit, this is a not for profit organisations, members have the right to know that information. Members have a right to expect to receive benefits for their membership, the club doesn't need to make a profit, it just needs to be sustainable.

Ideally, members should pay cost price for all services.

If for-profit companies can stay in business charging the same price or less than RACWA for better, newer planes, then the problem with RACWA is costs being too high.
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