for those who know the aviation charter business... for sim.

[briansommers 74]

Could this be a real world scenerio.

Lets suppose we have charter company x. They're new and don't have that much business going on. They have leased a PC12.

Now, suppose we have another charter company z. They have been around a while and are swamped.

Could company x use their pc12 and their pilot to fly a flight for company z for a cut of the profits to help them out since they're swamped? 
Or would this never happen?

Thanks. 
I'm trying to run a simulated charter company using OnAir career addon but I'm also trying to push it and use it creatively by changing the narrative.

Edited September 21, 2023 by briansommers
The words.

[philmurfin 74]

I don't know is my straight answer, but my guess would be that it goes on every day of the week.

[DaviiB 104]

1 hour ago, briansommers said:

Could this be a real world scenerio.

Lets suppose we have charter company x. They're new and don't have that much business going on. They have leased a PC12.

Now, suppose we have another charter company z. They have been around a while and are swamped.

Could company x use their pc12 and their pilot to fly a flight for company z for a cut of the profits to help them out since they're swamped? 
Or would this never happen?

Thanks. 
I'm trying to run a simulated charter company using OnAir career addon but I'm also trying to push it and use it creatively by changing the narrative.

Happens all the time. It's called a subcharter.

Company Z just becomes the client, and Company X becomes the operator. Standard charter contract between them.

They wouldn't get a cut of the profits really. The (negotiated) price is the price.

The fun comes when company X's PC12 (the sub-chartered one) is cheaper than company Z's. Now there's money to be made without doing most of the work (and you're now a broker).

As of a few years ago in the USA, there is now a law requiring that you disclose the operator of the sub-chartered aircraft to the client, so they can perform their own due diligence, and potentially refuse the offering if they deem the aircraft / operator to be unacceptable (safety concerns etc.)

 

Hope that helps.

DB

[iwebber 207]

Often called leasing.

https://en.wikipedia.org/wiki/Aircraft_lease

Happens all the time as demand and supply in different areas of the world waxes and wanes.

HTH

Ian

[briansommers 74]

I did find this…

https://www.paramountbusinessjets.com/aviation-terminology/air-charter-operator

 

thanks

[DaviiB 104]

7 hours ago, briansommers said:

https://www.paramountbusinessjets.com/aviation-terminology/air-charter-operator

That's a Charter Broker's website. They don't own or operate their own aircraft. They instead act as a middle-man, sourcing aircraft for their clients, mostly for ad-hoc charters. It's also an incredibly convoluted article.

Your original question is really simple:

If I'm a busy charter company, and a client asks me to book a trip, but I don't have any aircraft available, what do I do?

1. Don't service the client, and potentially lose them.
2. Ask another charter company for pricing on their aircraft, and offer it to my client. (The client still signs my paperwork for the ad-hoc flight, but I have a secondary ad-hoc contract with the company operating the flight for me)

Option 2 keeps everybody happy: The client gets where they want to go, We keep the client (and potentially make a bit of money), The sub-chartered company gets some business.

Make sense?

DB

[ViperPilot 81]

On 9/23/2023 at 5:06 AM, DaviiB said:

That's a Charter Broker's website. They don't own or operate their own aircraft. They instead act as a middle-man, sourcing aircraft for their clients, mostly for ad-hoc charters. It's also an incredibly convoluted article.

Your original question is really simple:

If I'm a busy charter company, and a client asks me to book a trip, but I don't have any aircraft available, what do I do?

1. Don't service the client, and potentially lose them.
2. Ask another charter company for pricing on their aircraft, and offer it to my client. (The client still signs my paperwork for the ad-hoc flight, but I have a secondary ad-hoc contract with the company operating the flight for me)

Option 2 keeps everybody happy: The client gets where they want to go, We keep the client (and potentially make a bit of money), The sub-chartered company gets some business.

Make sense?

DB

MOCHA HAGDOTI! 😀