Charterware provides an Application service for better plane allocation, 100% time logging and a fully automated billing. Within the scope of the “Munich business plan competition” in 2007 a model was developed for the customer´s benefit.  Discussions were done with german based customers  “UL charter” in Munich, “Drive-And-Fly” in Trier and the “Fliegerzentrum” in  Tannheim.

Several  improvement areas served by charterware were identified like follows :

• More turnover without increase of the fixed costs:
  The turnover / Costs / profit  structure of flying schools consists of  about 30%  variable costs, 60%  fixed costs and a maximum 10%  result on turnover. Charterware increases turnover by about 15%. The additional business without increase of the fixed costs delivers 70% of this additional turnover as additional profit. Consequently the additional profit is  (15% increase of turnover *70% margin) is up to 10.5% of today´s turnover.
• Turnover and profit increase by 100% time logging (block time, moving time or Flying time selectable)
  It is an open secret, that time logging today is very inaccurate. Comparisons of log books and “engine hours-counters”, tell on some examples that at leat 3min / h not charged today. These are 5% turnover loss which is directly profit never seen. Charterware counts every second avoids such lossens.
• Turnover increas by automatic cancelation fees
  Cancelation fees were not feasible up to now. Accidentially uncovered "silent" Cancellations are not a good basis to raise charges. The CharterWare “Cancelation supervision” works 100% automatically. It leads to cancelation charge turnover and/or better flying discipline, giving an additional effect of about 2% additional profit.
• Cost reduction with the book-keeping and account by automation
  The cost saving for billing staff are estimated at about 5% of the turnover. Cost savings is directly profit  contribution.

The four additional pieces of additional profit does not simply  add up, but one additional effect works on the preceding one, so that the improvement factors have to be multiplied:

Turnover + additional Profit  = Turnover  * 1,105 * 1,05 *1,02 *1,05 = Turnover *1,24

Explanation
1,105 (Profit from additional Capacity)
1,05  (Profit  from Time Recording)
1,02  (Profit from cancelation fees)
1,05  (Profit contribution from saved billing costs)
       = present turnover * 1,24

It ends up in 24% of todays turnover as an additional result or 24,000 € of profit / 100,000 € of turnover.