ACMI block hr rates
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ACMI block hr rates
Hi all
1st ever post on here. Hopefully I've posted in the right forum. I'm a college student doing a business studies course and my project is to start up an imaginary UK based airline using regional airports. The guts of the question is where can I find info on ACMI rates for J32, D228, Let 410, DCH-6, Metro. Also ACMI rates for J41, DO 328 T/P & Jet, Saab 340, Dash 8 100/200 ERJ 135/145. Imaginary routings are OXF - AMS, FRA, ZRH, GVA, EDI, ORY or
ESH - AMS, ORY, MAN, EDI.
Any info would be greatly appreciated
1st ever post on here. Hopefully I've posted in the right forum. I'm a college student doing a business studies course and my project is to start up an imaginary UK based airline using regional airports. The guts of the question is where can I find info on ACMI rates for J32, D228, Let 410, DCH-6, Metro. Also ACMI rates for J41, DO 328 T/P & Jet, Saab 340, Dash 8 100/200 ERJ 135/145. Imaginary routings are OXF - AMS, FRA, ZRH, GVA, EDI, ORY or
ESH - AMS, ORY, MAN, EDI.
Any info would be greatly appreciated
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Similar Dissertation
Sounds like your project is similar to my final year dissertation. However, yours is a little more extensive in terms of routings.
My advice will be to check the airport's website and see if you can find fix charges for services such as ground crew and handling. I know Oxford have theirs on their website.
Then contact MRO organisations/lessors for maintenance/crew price. You will find that a lot of company will be reluctant to share the cost of charges. Can't blame them really as they are a business at the end of the day.
It will be wise to broaden your horizon in terms of finding the cost of such service.
My advice will be to check the airport's website and see if you can find fix charges for services such as ground crew and handling. I know Oxford have theirs on their website.
Then contact MRO organisations/lessors for maintenance/crew price. You will find that a lot of company will be reluctant to share the cost of charges. Can't blame them really as they are a business at the end of the day.
It will be wise to broaden your horizon in terms of finding the cost of such service.
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Yvonne,
Welcome to PPRuNe, and I think you are posting in the right forum. Best of luck with your project.
I'd have to say that you're asking for rather a lot there!
First, you will know (I hope) that ACMI rates relate to wet-leasing an aircraft (i.e. with crew) from an airline that operates them. There are few or no European airlines offering some of the types you list, so if you are expecting a table listing a number for each of these aircraft, you'll be disappointed.
Second, there isn't one specific rate for a given aircraft, even from a specific operator. Aircraft costs have fixed and variable components, so the ACMI rate will depend on how many hours per month the aircraft is expected to fly. An operator may tell you "for 150 block hours per month, it'll be €500/hour, but for 100 block hours, it'll be €750 per hour." (Those are just hyothetical numbers, not real ones.)
But in the real world there's a more fundamental problem about starting your business plan with such a wide range of aircraft, both in seating capacity and in performance. For the route networks you indicate, you can eliminate a number of the aircraft straight away (the smaller turboprops are entirely unsuitable for the length of the sectors you're proposing from Oxford, while the short runway at Shoreham rules out the jets). But the main reason that startup airlines fail in the real world is that the promoters get too hung up on the sexy elements (choosing aircraft types, airline names, liveries etc.) and not enough on the boring commercial details (is there a genuine market demand? how big is it? who are the competitors? what are the fare levels out there in the market? how would my new carrier successfully sell its product to the market?).
You're aware (I hope) that in the last year, carriers have launched services from both OXF and ESH, and in both cases have failed abjectly. You would be well advised to look at comments made (on this forum and elsewhere) at the time, to learn about what those carriers were perceived to have done wrong.
In choosing OXF and ESH as your bases, you have presumably researched what the traffic potential is, who the key businesses are and which destinations are in demand. You presumably have a reason for suggesting OXF-FRA rather than OXF-MUC. You may wish to ponder why the startup carrier at ESH decided to fly to Pontoise rather than Orly (clue: slot availability). You will have an answer for why someone might want to spend 2 hours in a relatively slow turboprop from ESH to EDI rather than going to LGW and flying to EDI far more cheaply with easyJet. All of this demand-side analysis is utterly necessary homework before running the aircraft beauty contest (i.e. the supply side). Of course you can iterate the process after that - "which is more cost-effective for the market I've identified? 3 30-seaters a day, or 2 50-seaters?") But without a clear sense of the potential demand, you're wasting your time.
I am conscious that I have not answered your question, and I have "not done so" at some length.
I wish you good luck with your project, but from the way you have posed your question, I fear that you are approaching it from a direction which at best is a waste of time and at worst gives you an entirely mistaken view of how to start a successful airline in the real world. A startup regional airline in the UK is probably one of the harder pitches to make in the airline world these days; to have any chance at all of success, your business plan needs to have solid foundations.
Welcome to PPRuNe, and I think you are posting in the right forum. Best of luck with your project.
I'd have to say that you're asking for rather a lot there!
First, you will know (I hope) that ACMI rates relate to wet-leasing an aircraft (i.e. with crew) from an airline that operates them. There are few or no European airlines offering some of the types you list, so if you are expecting a table listing a number for each of these aircraft, you'll be disappointed.
Second, there isn't one specific rate for a given aircraft, even from a specific operator. Aircraft costs have fixed and variable components, so the ACMI rate will depend on how many hours per month the aircraft is expected to fly. An operator may tell you "for 150 block hours per month, it'll be €500/hour, but for 100 block hours, it'll be €750 per hour." (Those are just hyothetical numbers, not real ones.)
But in the real world there's a more fundamental problem about starting your business plan with such a wide range of aircraft, both in seating capacity and in performance. For the route networks you indicate, you can eliminate a number of the aircraft straight away (the smaller turboprops are entirely unsuitable for the length of the sectors you're proposing from Oxford, while the short runway at Shoreham rules out the jets). But the main reason that startup airlines fail in the real world is that the promoters get too hung up on the sexy elements (choosing aircraft types, airline names, liveries etc.) and not enough on the boring commercial details (is there a genuine market demand? how big is it? who are the competitors? what are the fare levels out there in the market? how would my new carrier successfully sell its product to the market?).
You're aware (I hope) that in the last year, carriers have launched services from both OXF and ESH, and in both cases have failed abjectly. You would be well advised to look at comments made (on this forum and elsewhere) at the time, to learn about what those carriers were perceived to have done wrong.
In choosing OXF and ESH as your bases, you have presumably researched what the traffic potential is, who the key businesses are and which destinations are in demand. You presumably have a reason for suggesting OXF-FRA rather than OXF-MUC. You may wish to ponder why the startup carrier at ESH decided to fly to Pontoise rather than Orly (clue: slot availability). You will have an answer for why someone might want to spend 2 hours in a relatively slow turboprop from ESH to EDI rather than going to LGW and flying to EDI far more cheaply with easyJet. All of this demand-side analysis is utterly necessary homework before running the aircraft beauty contest (i.e. the supply side). Of course you can iterate the process after that - "which is more cost-effective for the market I've identified? 3 30-seaters a day, or 2 50-seaters?") But without a clear sense of the potential demand, you're wasting your time.
I am conscious that I have not answered your question, and I have "not done so" at some length.
I wish you good luck with your project, but from the way you have posed your question, I fear that you are approaching it from a direction which at best is a waste of time and at worst gives you an entirely mistaken view of how to start a successful airline in the real world. A startup regional airline in the UK is probably one of the harder pitches to make in the airline world these days; to have any chance at all of success, your business plan needs to have solid foundations.
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Would avoid any routes ex-ESH that also operate ex-LGW. It's a short train ride to LGW and as mentioned above, LGW carriers probably do it cheaper and quicker.
To a lesser degree, the same applies with OXF and LHR (although, of course, there are no no-frills carriers at LHR and no direct train link).
Maybe speak to Brighton City Airways about ESH-POX if you can. It folded after 2 months.
Good luck with your studies Yvonne, and let us all know your progress.
To a lesser degree, the same applies with OXF and LHR (although, of course, there are no no-frills carriers at LHR and no direct train link).
Maybe speak to Brighton City Airways about ESH-POX if you can. It folded after 2 months.
Good luck with your studies Yvonne, and let us all know your progress.
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Cyrano has added some excellent advice, that is a great post!
I have started a UK scheduled airline so I would approach things as Cyrano says a little more simply.
Restrict your search to one or two aircraft types and then get dry lease rates from lessors ( most will help if you ask nicely) and find the approximate maintenance costs per hour, You will not get exact costs unless you know the hours to cycles ratio but as this is a study and not the real World it will not matter. Get the airport costs, usually published, crew costs, fuel burns and cost for the aircraft you choose. The fares, use the first class train fare as a guide if in doubt. Cyrano has covered most of it.
Learn the difference between wet, dry and damp lease and all about maintenance programmes,reserves and costs.
I can only say again concentrate on the boring bits, as Cyrano has said I hate to think how many start ups I have seen that never happened where people arrive with glossy photos, great plans for uniforms, paint schemes etc and totally forget the economics!
My own experience is somewhat out of date now but willing to help where possible.
I have started a UK scheduled airline so I would approach things as Cyrano says a little more simply.
Restrict your search to one or two aircraft types and then get dry lease rates from lessors ( most will help if you ask nicely) and find the approximate maintenance costs per hour, You will not get exact costs unless you know the hours to cycles ratio but as this is a study and not the real World it will not matter. Get the airport costs, usually published, crew costs, fuel burns and cost for the aircraft you choose. The fares, use the first class train fare as a guide if in doubt. Cyrano has covered most of it.
Learn the difference between wet, dry and damp lease and all about maintenance programmes,reserves and costs.
I can only say again concentrate on the boring bits, as Cyrano has said I hate to think how many start ups I have seen that never happened where people arrive with glossy photos, great plans for uniforms, paint schemes etc and totally forget the economics!
My own experience is somewhat out of date now but willing to help where possible.
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Well said both Cyrano and Groundhog. Groundhog is right if your proposal is for a stand alone regional operator then ACMI is not the right route. Using an a/c ACMI and then setting up a Quasi airline is very much against the CAA. Look up Airline licensing on there web-site. Really a single type is what you need too consider again depending on size will affect your costing's. Under 20 seats less financial requirement type B licence.
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Route Economics Calculator
Hi Yvonne,
You might be interested in a free to use route economics calculator that is available here.
· Calculate Route Economics for any aircraft type operated by Europe’s main Low Cost Carriers for any length route within Europe.
· Vary airport charges, fuel, and average fare to see the effect on total sector costsand cost per seat.
· Adjust LoadFactors to assess the required break-even fare for a particular cost profile.
· Bench mark different airlines or aircraft types on the same airline to see the differences in operating costs and break-even market sizes.
It doesn’tcontain OXF and ESH specifically and just features the costs of 12 leading European airlines but it may nevertheless give you a good understanding of route economics generally and help put into perspective the excellent point’s made by Cyrano, Hogand others….
You might be interested in a free to use route economics calculator that is available here.
· Calculate Route Economics for any aircraft type operated by Europe’s main Low Cost Carriers for any length route within Europe.
· Vary airport charges, fuel, and average fare to see the effect on total sector costsand cost per seat.
· Adjust LoadFactors to assess the required break-even fare for a particular cost profile.
· Bench mark different airlines or aircraft types on the same airline to see the differences in operating costs and break-even market sizes.
It doesn’tcontain OXF and ESH specifically and just features the costs of 12 leading European airlines but it may nevertheless give you a good understanding of route economics generally and help put into perspective the excellent point’s made by Cyrano, Hogand others….
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Just a quick Cunard next week.....Have to take a break from cruising as first Grandchild due in late spring.
Yes best of luck Yvonne you have been given the hardest task to do hence why there are not many airlines out there. I hope you have ben given a very deep pocket to play with as the saying goes. How do you make a small fortune out of an airline. Start with a big fortune......
Yes best of luck Yvonne you have been given the hardest task to do hence why there are not many airlines out there. I hope you have ben given a very deep pocket to play with as the saying goes. How do you make a small fortune out of an airline. Start with a big fortune......
