How much Air Charter Cost for for each Flight?

How much Air Charter Cost for for each Flight?

For those of you who plan to hire air charter, it helps to understand a lot of things first included about the air charter cost. How much should we paid for air charter? How does pricing scheme? Those become the important question that we will find oun in the next paragraph. To find the answer, it’s important to understand about what should be done. we could also find a way we can find the best rental prices are rather cheap or more suitable. All of it is very likely known if we had been aware of the pattern and cost structure defined by the air charter company.

General Cost Structure

To help you find know about the cost should be paid, it is really recommended for you to know and understand about the general cost structure of aircraft operations. It means that you have to know that there are some part and things related with the aircraft related to the breack down of the cost structure. There are two types of cost structures, included:

·         Fuel Cost

Aircraft fuel can be in the form of aviation turbine fuel (ATF) or jet fuel which is one of the primary highest cost of flights besides the aircraft itself. Not only applicable to  commercial airlines, but the private airlines or unscheduled air charter also affected. The prices vary will be determined by several things such as the size of the aircraft, the flight distance, type of aircraft and others variable cost such as handling fee, landing fee navigation fee and commissions.

·         ACMI (Aircraft, Crew, Maintenance and Insurance)

This is the cost structure that is commonly used for calculating the cost of air charter which commonly describes as hourly cost. It is the next thing must be paid after paying the fuel as the main-basic need for flight whether on airlines or air charter.

  • Aircraft: This is the basic cost of the aircraft. How to count the cost? Let’s take an example: you will rent Learjet 31 or Cessna citation class size with seating capacity of 8 seat. For the manufacture year 2000, the cost will be between usd1 to 1.5 million for 10 years or monthly payback of USD 10000.
  • Crew: this is the important staff on the aircraft which usually include at least 3 pilot, 2 captain and 1 copilot. The crew salary is varies; typically in the US or Europe, the average salary for typical Learjet captain requires USD 85000 and USD 60000 for copilot annualy. Let’s count for the cost monthly!
  • Maintenance: The cost of maintenance of aircraft is divided in to two major element, the fixed maintenance and variable maintenance. The fixed maintenance varies and averagely may reach 15 – 20% of aircraft cost. There are two types maintenance needs including fixed such as Engine and Auxiliary Power Unit (APU) maintenance reserve. While variable maintenance cost will be based on flight hours where it requires maintenance planning and consumables like engine oils, hydraulics, etc.
  • Insurance: It is a legal obligation for the air transportation service providers to protect all the people in the airplane as well as outside the airplane. The value or the cost of insurance is usually between 2-3% of the aircraft cost or smaller if the aircraft is bigger. As for the insurance premiums are usually paid depends on the passenger, crew and third party. Then there is an additional price if flying in areas of conflict especially in Middle East such as Afghanistan, Iraq, and others.

·         Tax

The next costs to be paid by the air charter companies is for the tax. Tax to be paid is usually passable quite expensive. But several countries have some differences in the procedure and the amount of tax to be paid the price. The cost of this tax is also charged on the price to be paid by the passenger of the aircraft.

·         Other charges

The other charges that the charterer may have to know is the landing fee, navigation fee, handling fee or additional services such as special catering order or alshoholic beverages.

Yes, you can easily obtain the landing fee from the airport based on weight of the aircraft and the navigation fee that charges by the states measured in nautical mile per weight that are available from AIP (Aeronautical Information publications) of the airport or Air Navigation Service Providers, in addition there is also standard ICAO document that publish periodically on ICAO doc 7100 airport charges.


So, How Much should we Pay?

From the explanation of the price structure generally above, so in fact how much should we pay for  a typical flight?   Certainly, the price will be determined by many things, including based on routes, aircraft types and others. But in general, from the overall example of charter cost sold in the US may about USD3500/hour for Cessna citation and USD 12500/hours for Boeing B767. Both of them just are the example, meanwhile for another fleet, it may varies depending on size, age, airport, and other charges.

Why Is It Expensive?

For some of people,  the price above sound quite expensive. Well, we have to know understand the air charter cost structure of why the price is expensive. Surely, there are some reasons which make the price to be more expensive where it can be seen from the advantages when we can get than from the commercial airlines. The composition of air charter element may become complicated if you want to be precise. Meanwhile, the aircraft price or hourly cost is usually determine by age, size or aeroplane. Commonly, the the bigger and newer aircraft will be more expensive.

Hopefully, the explanation above will help you and other people who have a plan for hiring and renting the best air charter with knowing first about the air charter cost.