Air
Charter: Pricing and payment
It is critical that the air charter
expense must be evaluated versus the trip at hand. The key
points include - the number of passengers, and a comparison
of the cost against alternative forms of travel. You would
need also evaluate the savings in time, ground transportation,
lodging, and gained business opportunity. With air charter,
you can bring all the benefits that air travel offers- quick
transportation combined with convenience and service. Of course,
when you have to be somewhere in quick time, it is worth every
cent.
Most aircrafts are usually chartered
on an hourly basis - the rates vary according to quite
a few factors. Hourly rates are calculated on the basis of
the time an aircraft actually spends in the air. A strong
tailwind, hence, will lower the cost. On the other hand, air
traffic delays, en route deviations , holding patterns will
increase icosts. Some brokers and operators will charge based
on a quotation that is fixed. here the quote does not change,
whatever your actual flight time. You need to understand which
method your air charter broker will be using for quoting and
invoicing you.
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Prom Dresses
Many charter operators would try to make
a more appealing price structure by charging on a distance
basis against actual trip-length. Some operators again, will
qualify this length, however, by charging for trip length
as extended by expected deviations. Here there is no way for
a passenger to check this actual distance.
Most unit-pricing charges, whether they
are hourly or distance based would relate to an charter operator's
actual hourly expenses—fuel, aircraft lease, crew wages,
maintenance, and the profit margin. The prices that are guaranteed
in advance are like any other lump sum agreement: a bet on
the part of the vendor so that he can do the job within the
price quoted and still make some extra money. To the extent
that the market would bear, a wise charter operator would
charge extra to give himself some margin. However, if one
is willing to share the bet and accept the unit price terms,
one may share savings if the trip is shorter than expected.
On the other hand, one may have to pay more if the trip takes
longer.
Surcharges
While most charter operators and brokers
include all surcharges in their base price, a few might bill
other aspects of the trip as additional charges. These can
include handling fees, including landing & take-offs,
municipal landing fees, waiting time, overnight charges, ramp
parking fees, de-icing, preheating of cabin and/or engines,
hangar storage, federal & state taxes.
Landing and ramp fees are regarded
expenses that are passed along to the customer. These fees
vary widely. Though they are usually quite reasonable, the
expense to land at a major metropolitan airport can be quite
high.
Terms of Payment
Terms of payment are a big concern to most
charter operators. Because a single trip has high expenses,
one bad debt can erase a substantial portion of annual profits.
Here the operator has provided a service that ublike a product,
cannot be returned, and the cost of pursuing the claim may
preempt litigation.
Very often, charter brokers as well as operators
would ask for a 15-20% deposit from a new customer. Sometimes,
an operator may also ask as much as 100%, or complete payment
in advance for a trip. The factors that influence payment
terms are the charter operator's cash position, his feeling
about the account, the trip cost, and the time available for
the credit history to be verified. When there is little time,
the operator would back his instincts or ask for payment in
advance.
Credit cards offer a way out in these situations.
The advantages are several: all travelers and companies have
credit cards; here a third party of national financial stature
is ready to offer support; a method where a "deposit"is
placed in escrow or advance. In order to minimize chances
of double booking or an unreliable customer. This gives the
operator a way to ensure final payment on time. Moreover,
cash flow is particularly critical to an industry with huge
fuel bills and very expensive equipment leases.
Last but not the least - make sure you thorougly
follow every line of the quote you receive from the charter
operator or broker and the payment terms are crystal clear.
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