VistaJet - boosts its Managment?
Join Date: Nov 2006
Location: United States of Europe
Posts: 25
Likes: 0
Received 0 Likes
on
0 Posts
deskjockey, as im sure you are aware, it entirely depends on how a business is structured...whether it makes money or not...short or long term.
im sure plenty of traditional european aircraft management companies are running stable businesses managing and operating Cessnas from CJ1 to CJ3. we see enough of them out there on the ramp.
yes big aircraft produce big margins, but they need to because they have far bigger overheads to cover.... small aircraft can sometimes be beautiful too
p.s. re your Drucker quote, is VJ profitable?
im sure plenty of traditional european aircraft management companies are running stable businesses managing and operating Cessnas from CJ1 to CJ3. we see enough of them out there on the ramp.
yes big aircraft produce big margins, but they need to because they have far bigger overheads to cover.... small aircraft can sometimes be beautiful too
p.s. re your Drucker quote, is VJ profitable?
Join Date: Feb 2008
Location: UK
Posts: 92
Likes: 0
Received 0 Likes
on
0 Posts
Grecian
ref Drucker yes
as for the CJ3 etc....you highlight a good point. From a management perspective of course you can make money simply becasue your business model (in the vast majority of cases) is cost plus, so as long as you keep a decent reign on the overheads you should do ok, as your not carrying any of the ownership and financing costs and whatever you buy in (crew, fuel, etc...you make x%). However when it comes to operating a large number of them, in a fleet style operation (Like NJ/VJ etc...) , the margins are so thin that in the current climate the management companies are selling the owners aircraft just to keep the cash moving so only covering DOC (and in some cases not completely) and forgetting the fixed costs....this means that the margin is zero or negative.selling $10 for $8.50.....
DJ
as for the CJ3 etc....you highlight a good point. From a management perspective of course you can make money simply becasue your business model (in the vast majority of cases) is cost plus, so as long as you keep a decent reign on the overheads you should do ok, as your not carrying any of the ownership and financing costs and whatever you buy in (crew, fuel, etc...you make x%). However when it comes to operating a large number of them, in a fleet style operation (Like NJ/VJ etc...) , the margins are so thin that in the current climate the management companies are selling the owners aircraft just to keep the cash moving so only covering DOC (and in some cases not completely) and forgetting the fixed costs....this means that the margin is zero or negative.selling $10 for $8.50.....
DJ
