PART 1: BUSINESS COST
About the business
The entire set-up costs associated with Flights For You charter company those includes costs of getting certificates of air operators, office equipments and old route are paid in the bank through which the company use to do its external financial activities related with its charter business. The company currently has got a request from the Department of Agriculture for submitting tender for providing flights for the academic researchers those are appointed by the department for investing wild dogs attack in Northern New South Wales (NSW) and South East Queensland of Australia. Due to this purpose, the charter company (Flights For You) needs to purchase a ATC rotating plotter. The company needs to plan for two flights during each month those are required to be scheduled for separate days in a month (Y?lmaz & Üzülmez, 2017).
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About the market
About the future
The reason behind such growth of the company is associated with the committed service which is provided by the company to its customers who are residing in and around Australia. The charter company has implemented after sale service which is also handled by the owner himself who is also the chief pilot of the company (Flouris & Lock, 2016). With this implementation, the owner of Flights For You become able to interact with its prospective customers to understand their choice and preferences. Here, the choice and preferences of the customers includes price of the charter, location and facilities those are intended by them to get during flights. The growing customer demand for availing charters is acts as the major opportunity for Flights For You Company to grow and to have a well build future in terms of business operation and profitability (Lohmann & Spasojevic, 2018).
About the finance
Air operators certificate cost 178 7.12 14.83
Test Approvals cost 300 12 25.00
Cost of office equipments 385 15.4 32.08
Costs of old route permit 137 5.48 11.42
Total Set-up Costs ($) 1000 40 83.33
Fixed Costs: 0.00
Rent 1250 50 104.17
Lease on Equipments 450 18 37.50
Insurance 1500 60 125.00
Depreciation 12000 480 1000.00
Wages with superannuation 900000 36000 75000.00
Annual check and renewals of Pilot 1000 40 83.33
Total Fixed Costs ($) 916200 36648 76350.00
Operational Costs 34500 1380 2875.00
Costs of fuel 6000 240 500.00
Repair and maintenance 25000 1000 2083.33
Income tax 1050 42 87.50
Total Variable Costs ($) 66550 2662 5545.83
TOTAL COSTS ($) 983750 39350 81979.17
(Source: Created by the researcher)
Revenue from aircraft 1015000
Revenue from others sources 24500
Total Revenue ($) 1039500
Total Costs 983750
Annual Profit ($) 55750
• It must have take-off weight which should not exceed 8,618 kg
• It must fit with a configuration of passenger seat which should not exceed 9 (casa.gov.au, 2018).
PART 2: TENDER
1. VNC Chart
Figure 1: VNC Chart
(Source: Created by the researcher)
2. Flight plan of the intended trip
• Destination which use to represent the place or location where the flight will land. For the current context destination is Northern New South Wales (NSW) and South-East Queensland (casa.gov.au, 2018).
• Flight Route, this helps the pilot to understand the route which he needs to follow during flying. For Flights For You, the flight route will be Archerfield (Qld) to Northern New South Wales (NSW) or South-East Queensland.
• Weather briefing, this help the pilot to measure the weather and its expected changes (Coffel & Horton, 2015)
• Altitude along with Cruise Profile. For Northern New South Wales (NSW) altitude is 1465m and for South-East Queensland it is 750m.
• Computed airspeed, this particular task helps the pilot to know about the speed of the aeroplane which he needs to maintain throughout flying.
• Distance to be covered, with this feature of a flight plan the pilot gets to know about the area or distance he needs to cover during a single flight. Distance which a pilot use to cover during flying consists the way begins from point of departure to the point of arrival. For the context of the current study, Flights For You needs to fly for 2548 kilometers per month (infrastructure.gov.au, 2018).
• Time or duration for each flight, each flight needs to have a certain time which is required by it to reach the destination. Here, the duration of each flight will be 5 hours in total for every single day.
• Weight to be carried by each flight, according to the current scenario Flights For You needs to carry 40 kgs for each academic researcher as the they are having gear of 40 kgs each.
• Equipments checking for the second time before take-off because for ensuring safety and security of the travellers (here, for the academic researchers) and pilot it is one of the basic requirement (aft.com.au, 2018).
3. Detail of the costs for a one-year contract and hourly rate
Air operators certificate cost 125 5
Test Approvals cost 200 8
Cost of office equipments 245 9.8
Costs of old route permit 75 3
Total Set-up Costs ($) 645 25.8
Rent 950 38
Insurance 1500 60
Annual check and renewals of Pilot 1000 40
Total Fixed Costs ($) 3450 138
Operational Costs 34500 1380
Costs of fuel 6000 240
Repair and maintenance 25000 1000
Income tax 450 42
Total Variable Costs ($) 65950 2638
TOTAL COSTS ($) 70045 2801.8
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Advanced Flight Theory (2018). VNC Chart. [Retrieved from: http://www.aft.com.au/store/contents/en-us/d54.html Accessed on 15 February 2018].
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Department of Infrustructure, Regional Development and Cities (2018). Aviation Policy & Regulation. [Retrieved from: https://infrastructure.gov.au/aviation/legislation/policy/index.aspx Accessed on 15 February 2018].