So… A friend and I have combined, probably somewhere over $1m in assets. Lets say we got it sold. If we were to buy a Gulfstream II [On controller.com for just under $1m], Could we have it chartered out via an aircraft management company and make decent money from it? Also, how much of it would we actually get? [Assuming the hourly rate is the one I see most - $4200].
Thanks!
Good luck with that!
You have $1M cash? Buy income producing property.
First, $1M is way too cheap, and it’s that cheap for a reason. It’ll have a pandora’s box of non-compliance and who “knows what” issues. Second, Expect costs of about $4000 per hour just to fly it. In addition to a minimum of $500k annually in fixed costs, then there’s management fees, etc, etc…
The only people that make money in the charter biz are the management company/certificate holders. And don’t let anyone tell you otherwise. There are reasons that aircraft owners charter their aircraft. But it’s not about profits. It is not a game for the faint of heart, or the under-capitalized.
Ahh, well, the ad(s) seem to show that everything is current, and the idea seemed like a good one, especially after seeing This page. But I’m not experienced in the industry and I’m not going to invest a fairly large sum of money against the advice of the experienced… at least not when I’m sober 
No jet for me till I’m 75 then 
P.S. - I guess that '67 727 for $1.8m aint a good buy eh? 
I’m sure you can make something work in your favor with $1M, just not a Gulfstream. Maybe a King Air?
B90/B100 eh?
Link the ad and lets take a look at the aircraft you’re interested in…
EJM wants to show you enticing numbers… They (like all management co.s) want your money in fees and at least 15% of the charter rate. Like I said…they’re the ones that are making the real money.
Everyone around you will make money except for you if you pay retail for all maintenance, fuel, hangar and other services.
And what if your plane does not fly for a few months? You still have all the fixed costs.
the ad(s) seem to show that everything is current,
Find out what upcoming inspections are in the next 1000 hours and what they can cost.
[quote=“azav8r”]
I wish I could start my own company … but that would need investors… and I’m not sure I’d want to enter any industry, especially aviation without having a fresh, new idea and providing some service that no-one else offers or without being able to stick out from the loads of other companies like mine…
Look into the issues and costs of Stage II and Stage III noise compliance for GII’s. Congress is likely to eventually pass a 5 year phase out of stage 2 aircraft.
This one here… The owner bought it with a similar idea as you. He dumped a bunch of money into it. It’s been for sale for a while. You can see how charter worked out for him. This big old birds are a huge money pit. And as ajw22 has mentioned, these old girls are not welcomed at most airports because they aren’t Stage III noise compliant. To hush kit them is very very expensive…more than the value of the aircraft.
[quote=“azav8r”]
Ahhh, I see… “Price before production installations begin in February is $1.795 million, at which time price goes up to $2 million.”… My bad!
King Air or maybe Twin Commander???
Charter/Air Ambulance
I guess I should put my 2 cents in here, since I fly a G2.
So far all great advice, the G2/3 is an expensive airplane to own.
On the management website, down in the footnotes it says: ** Does not include fixed costs or applicable financing fees.
Fixed costs are employee compensation, insurance, hangar and some small miscellaneous items. On a G2 you better budget around $4-500,000 per year.
Maintenance; We are spending $2-300,000 every six months for shop visits, and we have a mechanic who does the light stuff. What you won’t normally see in the sales ads is the Rolls Royce engine maintenance has the normal hourly checks but also calendar limits on mid-life and overhaul intervals. (10 years from overhaul to mid-life then another 10 to the next overhaul) Figure a little over a million dollars per engine for the cycle. At least.
The APU has a 3000 hour between overhaul interval, it normally doesn’t make it that far. $125-150,000.
Fuel: lots.
If you NEED an airplane anyway, now is the time to buy. You can offset some costs by chartering, but not really that much. The management company won’t tell you about market depreciation due to more flight hours on the airplane when you go to sell it.
Tax benefit? Like my dad, an accountant, used to say; if you need tax breaks, you can’t afford it. They are just a side benefit.
Whats the old joke? How do you make a small fortune in aviation? Start with a big fortune.
John
Let me know if you want to get in to a King Air. I have two that are very reasonably priced.
First it’ll cost you $1mil to have someone operate it. They’ll take possession of the AC then tell you that they need to fix this and fix that and replace this and replace that. THEN they’ll lie about the flight time and never pay you. You’d be better off giving me your money, where at least you’ll know it’s being spent on hookers and booze
Typical pilot
Porterjet,
quick gulfstream question- I was at Worldjet-FXE yesterday and noticed two G3's on the back row of the ramp with their doors open. They were open when we came in a week ago so I asked the line guy about it. He said the batteries were dead so they fell open. They don't lock? That's a lot of airplane to be sitting their with their interiors exposed to the elements.