From:
Sent:
Wednesday, October 9, 2013 10:13 PM
To:
[email protected]
Subject:
B727
Attachments:
B727engineinspection.pdf; FuelpriceDubia.pdf
Jeffrey, how does this email to the Sultan look? can you insert corrections=please? I will send after you approve.
thx, Larry
Dear Sultan, in response to operational cost, Pleas see my comments in BLUE ink to =our original email.
I have compiled actual cost to address these numbers that were =resented to you,. many of these numbers are
inflated. I have attached the&=bsp;actual cost of the #2 engine corrosion inspection for your review= Price for #2 engine
was $237,000.00 and will not be due until 2021 now, i=s a 8 year inspection on this engine.
Engines #1 and #3 are due every 9 years, and come due 2014, next year.=l have included a verbal quote received today
from Atlantic Gas Turbines i= Miami, price for #1 and #3 engines is $118,500 per engine, howe=er that does not include
possible repair of LLP turbine disc that may requ=re additional replacement, "IF" needed price per engine is budged at
"5k to MAX of $300k for each engine total, see email below: NOT the=$1M per engine your email states below:
Engines #1 and #3 are verbally quoted in this email from today:
From:
To:
I discussed with Atlantic Gas Turbine Corp today =he two 219 engines that will require ASB 6435 HPC Corrosion
Inspection and Hot Section Inspection of exposed combustion =ardware.
They verbally indicated a fixed price to accompli=h
ASB 6435/ AD HPC Corrosion Inspection
HSI Inspection Test/ Fuel and Oil all Build Up ( 100% expendables) parts
Strip/ Repair and Recoat of HPC Disks Return engine to service. Preserve Long Term
Pricing was quoted at $118,500.00 per engine.
PROT10
PROT0
LLP Replacement will be considered Over and Above=this pricing as will any other requirements to the engine due =o exposure for ASB 6435.
With replacement of LLPs and possibly requirement= to the N1 Compressor/ Fan Section due to condition
a good budgetary estimate for Repair of the engin=s would be in the range of $ 225K to $300K per engine.
AGTC can provide a written quotation at your=request.
Thanks Michael Maier
A dry lease is a leasing arrangement whereby an aircraft financing =ntity, such as GECAS and ILFC
(lessor), provides an aircraft without insurance, crew, ground =taff, supporting equipment, maintenance, etc.) then you
would pay a fixed =ost for the "lease" of the aircraft and then be responsibl= for all other direct operating costs plus
maintenance.
I have attached a breakdo=n of what the fixed costs are estimated to be. As you will see this is app=ox.
$1,220,651 per year.
The more hours you fly th=n your hourly cost comes down.
However, for example, x2 =f the engines are due AD 2003-16-05, this involves a complete engine
strip=down, and I estimate this will cost approx. $1 mill per engine as well as =months down time.
There is mention of Crew Training at a cost of $99,.00 per year, I use FAA approved PanAM Flight
academy in Miami trai=ing my pilots for $6,500 for TOTAL for all three crew member,.
FUEL Pricin=:
I have atta=hed quote.
Insurance cost for 2013=was $125,000
BOEING VIP SUPER 727
ESTIM=TED VARIABLE COSTS PER HOUR
2
PROT11
PROT1
Corporate Fuel (1) $11,623.50 Fuel Additives 0.00 Maintenance Labor (2)
427.50 Parts Airframe/Eng/Avion (3) 197.43 Engine Restoration (4)
627.06 Thrust Reverser Allowanceaspan> 12.54 Propeller Allowance./div> 0.00
APU Allowance 68.97 Major Periodic Maintenance=/span>
0.00 216.21 - Crew Expenses 290.58 Supplies/Catering=/div> 153.30
- Other 0.00
Total Variable Cost/Hour <=ont face="Times New Roman">
<=pan style='font-family: "Arial","sans-serif"; font-size: 10pt; mso-hansi=theme-font: minor-latin; mso-bidi-font-family:
"Times New Roman"; mso-bidi=theme-font: minor-bidi; mso-bidi-font-size: 11.0pt; mso-hansi-font-
family:Êlibrif>$13,617.09=/div> Cost per Nautical Mile
$31.30 Average Speed-Kts (5) 435.00
REFERENCE Size of operation:
3
PROT12 08680
PROT2
&nbs=;
&=bsp; Currency: $=/div>
1. Fuel Cost 7.38 Gallons/Hour Blk Fuel/Flt Time +15%=o:p>
1,575
2. Maint Labor Cost per Hr 90.00 Maint. Hrs/Flt Hours
4.75 Aircraft Model Year 1984
3. Inc' Engine Parts Cost=/span> No=o:p> Engine Model
JT8D-17 & 217C
4. Overhaul Cost Source</=pan> Estimated
5. Block Speed Source Mftr Data
ANNUAL FIXED COSTS 8727 VIP Super 27 Corpor=te
<file:///C:/Users/Owner/AppData/Loca=/Temp/msohtmIclip1/01/clip_image001.gif> =!--[enditi-->Crew Salaries -
Captain (6) &=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=; $161,000 cont size="2">Co Pilot &nb=p;
&nb=p;
&nb=p;
&nb=p;
120,000 <=ont size="2">Flt Attendant &n=sp;
[repeated 4 times] 90,000
4
PROT13 08681
PROT3
<=ont size="2">Flt Eng/Other &n=sp;
&n=sp; 0 <=ont size="2">Benefits &nb=p;
&nb=p;
&nb=p;
&nb=p;
1,300 Hangar - Typical &nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
179,600 Insurance -Hull (7) &nb=p;
&nb=p;
&nb=p;
&nb=p;
&nb=p;
160,000=/font> Single Limit Liability &nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
<file:///ClUsers/Owner/AppData/Loca=/Temp/msohtmIclip1/01/clip_image002.gif> ìurrent Training
&nb=p;
&nb=p;
&nb=p;
&nb=p;
&nb=p;
99,000</=:p> Aircraft Modernization (8) &nb=p;
&nb=p;
&nb=p;
&nb=p;
&nb=p;
75,000</=:p> Navigation Chart Service &n=sp;
&n=sp;
15,001 Refurbishing (9) &nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp; 179,550 Computer Maintenance Program (10)13,500<=0:p>
Weather ServÎ (11)
&nb=p;
&nb=p;
&nb=p;
</=pan>700 Other Fixed Costs &n=sp;
&n=sp;
&n=sp;
-
&n=sp;
&n=sp;
0
Frac Mgmt Fee/Yr + Tax &nb=p;
&nb=p;
&nb=p;
&nb=p;
&nb=p;
&nb=p; 0
<file:///C:/Users/Owner/AppData/Loca=/Temp/msohtmIclip1/01/clip_image003.gif>
<file:///C:/Users/Owner/AppData/Loca./Temp/msohtmIclip1/01/clip_image003.gif> =otal Fixed Cost/Year &n=sp;
&n=sp;
[repeated 3 times] $1,220,651<=pan style='font-family:
"Arial","sans-serif'; font-weight: normal; mso-f=reast-font-family: Arial;'>
REFERENCE Size of operation:
6. Crew Salary Source 12 NBAA Number of Crew 3=o:p>
7. Ins Hull Value/Frac Share Cost $8,000,000 Hull Insurance Rate (%)<=span>
2.00
8. Modernization</=iv>
5
PROT14 08682
PROT4
10 Yr Avg
9. Refurbish Labor Hrs/Seat
105
10. Comp Mx Program Source Typical
11. Weather Service Source Typical 8727 VIP Super 27
Corporate Utilization - Nt. Miles 175,000 - Hours
402
<=ont face="Calibri"> Variable Cost 5,474,070 Fixed Cost
1,220,651
Total Cost (No Depreciation) $6,694,721 - Per Hour
16,654 - Per Nt. Mile 38.28 - Per Seat Nt. Mile 2.01=o:p>
6
PROT15 08683
PROT5
Total Cost (No Depreciation)=/span> 6,694,721 Book Depreciation (12)
800,000
Total Cost (Book Dep.) $7,494,721 - Per Hour 18,644
- Per Nt. Mile 42.86 - Per Seat Nt. Mile 2.26=o:p>
Total Cost (No Depreciation)=/span> 6,694,721 Market Depreciation (13)</=pan>
320,000
Total Cost (Market Dep) $7,014,721 - Per Hour 17,450
- Per Nt. Mile 40.11 - Per Seat Nt. Mile 2.11=o:p>
REFERENCE Size of operation:
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp; Date: 10/6/2013<=pan style="msotab-count: 1;">
&n=sp;
= Currency: = &n=sp;
&n=sp;
&n=sp; $ =!--(if isupportLists]-->12. Book Depreciation <=span>Rate
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
10
7
PROT16
PROT6
=!--[if Isupportlists]-->13. Market Depreciation=Rate
&n=sp;
[repeated 3 times] 4<=div>
GENERAL COMPARISON 8727 VIP Super 27 &n=sp;
Corporat=
<file:///ClUsers/Owner/AppData/Loca=/Temp/msohtmIclip1/01/clip_image004.gif> =!--[endifJ-->Cabin Height (Ft)
&nb=p;
&nb=p;
&nb=p;
&nb=p;
&nb=p; 6.90 - Width &=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp; 11.50 - =font size="2">Length&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
92.70=o:p> Cabin Volume (Cu. Ft.) &=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
6,425.00 Cabin Door Height (Ft.) &nb=p;
&nb=p;
&nb=p;
&nb=p;
&nb=p; 6.00 <=ont size="2">Width&nb=p;
&nb=p;
&nb=p;
&nb=p;
&nb=p;
2.80=/span> Baggage - Int. (Cu.Ft.) &n=sp;
&n=sp;
10.00</=pan> <=ont size="2">External &nb=p;
&nb=p;
&nb=p;
&nb=p;
750.00
<file:///ClUsers/Owner/AppData/toca./Temp/msohtmIclip1/01/clip_image003.gif> =ypical Crew/Pass Seating
&nb=p;
&nb=p;
&nb=p;
&nb=p;
</=pan>3 / 19 Weight - Max Take-off (Lbs.) &=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp; 194,800 <=ont size="2">Maximum Landing &nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
158,000<=span> cont size="2">Basic Operating &n=sp;
115,000 <=ont size="2">Usable Fuel &=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp; 77,260
8
PROT17
PROT7
Payload-Full Fuel (Lbs.)
&nb=p;
&nb=p;
&nb=p;
&nb=p;
3,240 <=--(if gte vml 1]> Maximum &n=sp;
&n=sp;
[repeated 3 times] &n=sp; 26,000
<file:///ClUsers/Owner/AppData/Loca=/Temp/msohtmIclip1/01/clip_image002.gif> =ertified
&n=sp;
[repeated 5 times]
Yes
<file:///ClUsers/Owner/AppData/Loc=l/Temp/msohtmIclip1/01/clip_image003.gif>
&n=sp;
[repeated 5 times]
Yes
Price - New (Corporate)/1000 &nb=p;
&nb=p;
&nb=p;
&nb=p;
$0
- Pre Owned Rng/1000 &nb=p;
&nb=p;
&nb=p;
&nb=p;
&nb=p; 5000 / 8000
<file:///ClUsers/Owner/AppData/Loc=l/Temp/msohtmIclip1/01/clip_image005.gif> = Years Produced
&nb=p;
&nb=p;
&nb=p;
&nb=p;
&nb=p; 1968 1984
PERFORMANCE COMPARISON 8727 VIP Super 27</=pan> Corpor=te
<file:///C:/Users/Owner/AppData/Loc=l/Temp/msohtmIclip1/01/clip_image006.gif> Range - NB=A IFR Res (N.
Mi.)</=iv> - 4 Passenger 3,900 - Ferry Range 4,050
Range - 30 Min. Res (N. Mi.) 0<=:p> - 4 Passenger 0<=:p>
- Ferry Range 0<=:p>
9
PROT18
PROT8
Balanced Field Length (Ft.)<=span> 5,550 landing Distance - FAR 91
2,250 Landing Distance - FAR 121</=pan> 3,750 Landing Distance - FAR 1354=pan>
2,813 Rate of Climb (Ft/Min) &nb=p;
&nb=p;
&nb=p;
&nb=p;
&nb=p;
2,380
<file:///C:/Users/Owner/AppData/Loc=l/Temp/msohtmIclip1/01/clip_image007.gif> -=One Engine Out
84=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
&nbs=;
&=bsp;
0
Cruise Speed - Max (KTAS)
485
- Long Range
455
Ceiling Certified MTOW (Ft.)=/span> 42,000 - Service
42,000 - Service OEI 31,000
Ceiling Service HIGE (Helicopter Only)=o:p> 0=o:p> Ceiling Service HOGE (Helicopter Only)<=:p> 0<=:p>
10
PROT19 08687
PROT9