Hong Kong Biz Jet MNGMT Fees

[hawkerjet]

Hi all,

Could someone please pm the cost of monthly management fees for a large cabin bizjet ( G550/Globaljet size) in Hong Kong. I am doing some development analysis and need some fairly accurate numbers to plug in. Thanks in advance. I do appreciate the exuberance of some, but can we limit the responses to those that know for sure and not just guessing.

Thanks...
HJ:eek:

[FrankR]

If you want accuracy, why don't you call them up and ask them?

FR

[envoy]

hj

FrankR is spot on - but I would add to his comment that companies might be secretive about their management fees, so don't be surprised if you get null responses.

Something to keep in mind: the management fees can vary significantly depending on how the management companies make their profit. Some companies charge a lower management fee, and make their profit by charging a percentage on all charges re-billed to the owner. Others do not charge a markup on re-billed operating expenses, so instead they make their money out of higher management fees.

Either way, I understand that there is not much money to be made in managing private aircraft... you need a sideline to make significant $$$: finance/sales brokering, maintenance and charter seem to be the significant money spinners.

Good luck with whatever you are up to!

[FrankR]

You're correct. If you come across as being just a guy who wants competitive intelligence, you will get zip.

On the other hand, many operators here shop around each year and talk to all the management companies, in an effort to shave a HK buck or two off their fees.

Sometimes they leave, sometimes they stay. Pilots who offer up advice to the owner oft find themselves standing when the music stops.....

HK and the Mid East are similar in that you have little chance being successful in starting your own shop if you are a westerner. You must have a few locals at the top. (Preferably not your current flight attendant).

FR

[gargamelito]

people who talk about management fees are generally mislead by the thought of such fees being the only actual revenue part on the operator/service provider's side.

It's always worthwhile to compare the actual or for that matter anticipated operational budget at a reasonable yearly utilization. This way you'll be able to determine whether certain entities put a premium on third party charges.
Such budgetary estimate should constitute a part of any agreement made.

A rule of thumb is that company size = buying power = generally best option in terms of cost.

Your general area of operation however may require more in-depth consideration when it goes to choice of operator/service provider.
Everyone has certain geografical weak-spots or strengths.

Turning back to the initial question - you will get offers for monthly fees between 10-15k USD. Negotiation margin is roughly a third.

best of luck!