Fourth aircraft penalty

Started by palandar, February 18, 2011, 09:52:50 PM

palandar

Hello,
I'd like to know more about fleet commonalty and especially the fourth aircraft penalty.

I currently operate a fleet of three different a/c types. My current weekly expenditures for training and maintenance are in the region of 2 mln USD.

Should I add a fourth aircraft type, would I get a penalty on those existing costs on top of what I would pay for the training and maintenance of the fourth type? In other words, would I pay proportionally more for the current training and maintenance activities?

Thanks in advance.

slither360

Don't get a fourth aircraft type unless you are planning to get rid of it quickly (i.e replacing fleet) or you wish to go bankrupt.


Sigma

Quote from: palandar on February 18, 2011, 09:52:50 PM
Hello,
I'd like to know more about fleet commonalty and especially the fourth aircraft penalty.

I currently operate a fleet of three different a/c types. My current weekly expenditures for training and maintenance are in the region of 2 mln USD.

Should I add a fourth aircraft type, would I get a penalty on those existing costs on top of what I would pay for the training and maintenance of the fourth type? In other words, would I pay proportionally more for the current training and maintenance activities?

Thanks in advance.

Yes, the penalty (and not just the 4th type, but all previous and subsequent ones) affects all your existing fleet types.

It changes, but bet on a 50% increase.    So that very first plane of the 4th type will cost you $1M/wk.  Each subsequent plane of the type will have the normal increase to just that type's specific expenses.  But every new type affects the pricing of all previous ones.