Poll: Can A Fractional Charter Model Like Wheels Up Ever Be Profitable?
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Featured Video: Airthre’s Cabin Oxygen Generator
Here's one we missed in our Sun 'n Fun 2024 coverage. Oxygen bottles rule the general aviation space because pedestrian oxygen generators simply aren't...
I worked for 4 different business models in my aviation career. I have seen that outright company ownership of planes is not always the best way to be profitable, especially if the planes are not paid for (paying for bank loan). Leasing can be better if the leasing terms are favorable to the operator. Fractional can work only if the charges are enough to pay for all expenses.
The aircraft management operation seems to be the best. In this business, you are getting owners to pay for the plane, along with the operating expenses that go along with it. In other words, how do you make a small fortune in aviation? Use someone’s else’s large fortune!
I saw in school leaseback situations where the school had its own planes plus leasebacks. Mysteriously, the school’s own planes were busier than the leasebacks, especially in really lean months.
Not sure if this is an issue with charters, but I’d be careful to watch for that.