Monday, November 19, 2007
Sunday, November 11, 2007
Assessing the DayJet monthly burn rate
Borrowed from the Eclipse Critic comments..........
If you assume that each flight was a revenue flight (no positioning or dead head flights and no diverted flights) and each flight had 3 passengers and each passenger paid $4 per mile, you would get the absolute maximum revenue for the month.
If you assume a reasonable percentage of the flights were positioning, training, or dead head flights and each rev flight had one passenger and each passenger paid $2 per mile, then you get the lower bound on revenue for the month.
Then best case would be 3 passengers per flight x $4 per mile x 314 flight hours x 220 miles per flight hour x 100% revenue flights =$830K for the month.
The worst case would be 1 passenger per flight x $2 per mile x 314 flight hours x 220 miles per flight hour x 66% revenue flights = $92K for the month.
As with anything, the truth lies somewhere in the middle. Let's split the difference and say DayJet had $460K in revenue for the month.
According to Eclipse it costs $424.75 per hour in operating costs. That would be 314 flight hours x 424.75 = $133K in direct cost per month.
Interest expense of financing 15 aircraft would add let's say roughly another $100K per month.
If you had one and a half crews for each aircraft, that would be 45 pilots at $60K per year - works out to another $225K a month. (Likely more than 3 pilots per airframe - Ed.)
That's $458K in expenses per month vs. $460K of revenue.
If you assume that each flight was a revenue flight (no positioning or dead head flights and no diverted flights) and each flight had 3 passengers and each passenger paid $4 per mile, you would get the absolute maximum revenue for the month.
If you assume a reasonable percentage of the flights were positioning, training, or dead head flights and each rev flight had one passenger and each passenger paid $2 per mile, then you get the lower bound on revenue for the month.
Then best case would be 3 passengers per flight x $4 per mile x 314 flight hours x 220 miles per flight hour x 100% revenue flights =$830K for the month.
The worst case would be 1 passenger per flight x $2 per mile x 314 flight hours x 220 miles per flight hour x 66% revenue flights = $92K for the month.
As with anything, the truth lies somewhere in the middle. Let's split the difference and say DayJet had $460K in revenue for the month.
According to Eclipse it costs $424.75 per hour in operating costs. That would be 314 flight hours x 424.75 = $133K in direct cost per month.
Interest expense of financing 15 aircraft would add let's say roughly another $100K per month.
If you had one and a half crews for each aircraft, that would be 45 pilots at $60K per year - works out to another $225K a month. (Likely more than 3 pilots per airframe - Ed.)
That's $458K in expenses per month vs. $460K of revenue.
Sunday, November 4, 2007
I'll take potpourri for $100, Alex
Tell us how you really feel, anonymously inarticulate internet commenter.
Mike Press October Newsletter - Eclipse will need capital to tide them over til ramp up.
Did DayJet sell (or fail to take delivery on) an airframe?
DayJet Nuggets by Sean Broderick of the AirportMagazine.Net.
DayJet jobs.
Mike Press October Newsletter - Eclipse will need capital to tide them over til ramp up.
Did DayJet sell (or fail to take delivery on) an airframe?
DayJet Nuggets by Sean Broderick of the AirportMagazine.Net.
DayJet jobs.
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