Your Profit

You advantage: 24% additional earnings of today´s turnover

Within the scope of the “Munich business plan competition” in 2007 a model was developed for the customer´s benefit.  The following chart shows the improvement components in  per cent earnings on today´s turnover, generated by charterware before taking into account the charterware cost.

• More turnover without increase of fixed costs:
The turnover / Costs / profit structure of flying schools consists of about 30 % variable costs, 60 % fixed costs and a maximum of 10 % result on turnover. Charterware provides for a better allocation assuming a 15 % increased turnover. 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 %) 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 hour counters”, that at leat 3min / h are not charged today. These are 5 % turnover loss which is directly profit never seen. Charterware counts every second avoiding such losses.

• Turnover increase 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 cancellation charge turnover or better flying discipline, giving an additional effect of about 2 % additional profit.

• Cost reduction with the book-keeping and billing

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 are fully independent from eachother and consequently do not simply sum up. They are indepentendt improvement factors on today´s turnover.

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

It ends up in 24 % of todays turnover as an additional profit before taking charterware cost into account.

Assuming a yearly turnover of 48.000 EUR, use of the components Online Reservation, automatic Logging and Billing and an amortization of 4 years for the OBU Investment, the situation changes as follows:

Total charterware cost is 3,1% of turnover, giving a remaining profit of 21 % after charterware cost. This is an equivalent of 10.022,- EUR profit leverage / plane and year.

The Return on Investment time of just 1,25 months is even more impressive:
After 5 weeks one has invested 950,- EUR for OBU + 131 EUR server service rental as a total effort of 1080 EUR.

The investment pays back within just 5 weeks.