The Owner Cost section of an Aircraft Contract allows an operation to input what is paid to the owner of the aircraft when it is chartered to a customer. The Owner Cost is referred to when a quote is created. This guide will outline:
- how to setup the Owner Cost for an Aircraft Contract
ACCESS AIRCRAFT CONTRACT
Go to: My Company > Aircraft and select an aircraft
Access the Contracts tab and select the contract to add the Owner Cost. If multiple contracts are created, be sure to set the Owner Cost on all contracts for Profit Analysis results.
SETUP OWNER COSTS
Owner Cost Calculation Methods
There are 3 owner cost calculation methods:
- Segment Based: Owner's cost calculated by the passenger and position legs based on a percentage of flight time on quote.
- Quote Based: Owner's cost calculated by the percentage of flight time on quote.
- Flat Hourly: Owner's cost calculated by the passenger and position legs based on an hourly rate of flight time on quote.
Example of a Flat Hourly Setup:
Once a calculation method has been selected, various options will be available to edit.
- Hourly Rate: Cost per hour for passenger (PAX) designated flight legs on the trip, based on quote estimations.
- Position Rate: Cost per hour for positioning (POS) designated flight legs on the trip, based on quote estimations.
- Nautical Mile Rate: Cost per NM flown on trip, based on quote estimations.
- Statute Mile Rate: Cost per SM flown on trip, based on quote estimations.
When rates are entered for both the
- Flight Minimum Share %: When the Daily Minimums are met for a quote, this will be the percentage split between the operator/company and the owner of the aircraft.
- Flight Minimum Share Calculation: Calculate the flight minimums by Flight Time, Block Time, or Calculation Type (which is the type set on the quote).
- Fuel Surcharge Share %: The owner's cost is 100% of the Fuel Surcharge. The owner gets all the calculated Fuel Surcharge.
- Owner Collects Block: If set to Yes the owner collects on the Block Time as well as the flight time calculated on the quote. If set to No, the owner will collect on Flight Time only.
- Owner Collects Short Leg: Set Yes/No if the owner collects the Short Leg Fee.
- Custom Rate Option: This relates to the Daily Minimums. The options are the Billed Rate (Retail Hourly Rate) or the Owner Hourly rate. (In the example above, the owner is paid the Daily Minimums based on the $3200.00 Hourly Rate rather than the Retail Hourly Rate of $4000.)
To learn about the results of the Owner Setup refer to Quote: Profit Analysis.