Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
BBJ/ACJ Profitability  
User currently offlineFLY777UAL From United States of America, joined May 1999, 4512 posts, RR: 2
Posted (15 years 5 months 1 week 6 hours ago) and read 1922 times:

In several books and articles that I've read regarding the Boeing Business Jet and the Airbus Corporate Jet, many people have stated that based upon their operating costs per hour, they aren't profitable/an advantage over airline or smaller biz-jets on flights, unless carrying around 50 passengers. How is this? What types of fares are they comparing this to?

In my figures, both are let's say, $2,000/hr. to operate. If you take that over a 10-hour flight, that's only $20,000. If you compare that to half of the round-trip fare for the airline equivalent of what the execs would be flying (Business Class @ $7,000), or $3,500, you'd only need to have 6 passengers (5.71...) in order for the BBJ to become a better deal. Where exactly do these people get their information?

F L Y 7 7 7 U A L

3 replies: All unread, jump to last
User currently offlineIndianGuy From , joined Dec 1969, posts, RR:
Reply 1, posted (15 years 5 months 1 week 3 hours ago) and read 1915 times:

Well, i dont think it is THAT cheap to operate!

But in anycase, companies that r buying these jets are doing it for ONE big reason: freedom from the shackles of Scheduled Flights. A Private Jet available to them on the tarmac 24 hrs a day, means the executives freedom to operate according to their schedules, not airline schedules. In that sense, a BBJ/ACJ is just a very large Learjet. With around 30 seats, the cost-per seat would not exceed that of a J-Class seat. Considering the advantages, this is cheap!

the main users would be comopanies whos ops are spread across continents like GM or Daimler.

Scheduled Airlines are for us common Bhadralok!

User currently offlineAmbasaid From , joined Dec 1969, posts, RR:
Reply 2, posted (15 years 5 months 1 week ago) and read 1905 times:

BBJ and ACJ's are like all corporate aircraft, they will be sold to 3 kinds of customer.

1: Charter companies like Netjets or the ACJ operator out of the UK.
2: People who can afford the luxury.
3: Corporations that will use them as business tools, in this case they do not need to be profitable only justifiable.

Look at the cases of VIP B747's, B777's and MD11s they usually have around 100 seats but at their destinations ALL of the passengers can climb into a S76 Helicopter.

As for companies like GM, you will probably find that all of their are banned from carrying more than a couple of senior executives.

So while cost is a factor, profitability isnt.

User currently offlineSteman From Germany, joined Aug 2000, 1479 posts, RR: 7
Reply 3, posted (15 years 5 months 6 days 23 hours ago) and read 1900 times:

Other customers of such aircrafts are governments.
Italian Air Force has two A319CJ used for V.I.P. and Presidential transport, an Arab state too has one (maybe Qatar) and France is about to order other two.



Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Lufthansa And PrivatAir - Further BBJ/ACJ Routes posted Wed Dec 4 2002 22:47:32 by Teahan
ACJ's And BBJ's Booming! posted Wed Nov 9 2005 15:55:19 by KLMCedric
BBJ & ACJ posted Mon Nov 8 2004 07:21:22 by HAWK21M
BBJ And ACJ posted Sun May 23 2004 16:42:46 by Svenvdm
BBJ Vs ACJ What Cabins Are Better? posted Mon Nov 3 2003 10:36:43 by Boieng747-400
MD-83 Vs BBJ And ACJ Corporate Shuttle posted Thu Jan 24 2002 07:54:43 by FLY777UAL
Special Gain Propels Delta To Profitability posted Fri Nov 10 2006 08:41:29 by GFA330
An Airline Cannot Shrink To Profitability posted Thu Nov 2 2006 05:30:14 by MasseyBrown
Heads Up Wilmington/New Castle ILG - New BBJ posted Tue Oct 17 2006 18:46:15 by RobK
NYT Article On 787 BBJ And The Luxury Market posted Tue Oct 17 2006 17:33:55 by BWI757