Question
Can someone add the source of this Draft please? Just need the link thank you. 1.The cost will be in most cases based on Distance
Can someone add the source of this Draft please?
Just need the link thank you.
1.The cost will be in most cases based on Distance travelled and also facilities required on board. In case of charter the company may give option to Pay for Lease of planes only and you may pay for Fuel, Pilot Arrangement , Support Facilities Inside, Crew Charges or vice versa a single flat rate for all charged in bound.
2. The cost will include the Airplane fuel , Flight Attendants depending on need , Airplane Pilot and CO-Pilot, License Fees for flying, Landing and parking charges , Permit and other Fees , Navigation and support for flying and ground maintenance team for it. Regular servicing and checks.
3.The cost will include that is common is the per distance variable cost which include Aero fuel direct and staff of airplane fees. The decision will be the variable cost which will be less as we can then hire permanent staff on basis of use and costing of other services can be less. If our variable cost offer more percentage gap then we can went through purchase of aircraft.
4.The type of aircraft required, selection of Crew , design and necessary infrastructure of aircraft for meeting and other purpose. The flexibility of it along with usage as requirement will be main factors.
5.The cost would be airplane fuel, in board services cost, License and permit for operations of that flight and recoverability of salary of crew members, maintenance cost. These are direct variable cost to be considered while deciding the renting options.
6.The depreciation would not be relevant as this is a financial accounting to spread the purchase expenses to useful years. We cannot expect that someone on rent would pay expense for the purchase cost as this would mean that they are owning it and not taking it as rent. So depreciation only helps to take out financial profit and loss and not as a costing criteria.
7. Purchase or Hire decision is typically taken in this case as we compare the costing of two factors in long run and then see whether which option will save money. This tools help us analyze better regarding the decision to buy the aircraft or continue to hire it.
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