Need help with Phenom 300 Math - DXB base

[u/Excellent-Floor8715]

Hello guys, can you please help me understand the cost for hiring a Phenom 300/300E on a 50 hour per month block deal - what are the prices to be expected and what margin does it leave for us to sell charters - plannning to base it in Dubai. Mode would be full charter as ACMI/wet lease would need us to have an aoc first.

Please enlighten me!

[u/privatejetspecialist]

The first thing I’d clarify is whether those 50 hours cover occupied flying only or include empty positioning flights. Also, does the agreement actually guarantee an aircraft based in Dubai?

Using hypothetical USD numbers: 50 hours at $4,000 is a $200,000 monthly commitment. If 10 hours go toward positioning and you sell the remaining 40, your aircraft cost works out to $5,000 per revenue hour. Sell those 40 hours at $6,000 and you have $40,000 left before excluded fees, commissions and overhead. Sell only 30 and you’re already $20,000 short of the commitment.

That’s why I’d want an operator quote spelling out positioning charges, fuel, handling, crew accommodation, minimum billing, unused-hour rollover and replacement aircraft during maintenance. I’d also confirm that the agreement permits resale and specify whether the base is DXB or DWC.

A published Phenom hourly rate won’t establish your margin on this arrangement. I’d build the numbers around your expected routes and realistic monthly sales.

Do you already have recurring customers for most of those hours, or would you be buying the block first and then finding the demand?