EFTA00972381.pdf

From: Lvjet < To: jeevacation@gmaiLcom Subject: Fwd: B727 Super Date: Wed, 09 Oct 2013 16:27:34 +0000 Attachments: 727 SUPER COSTS.docx Sultan just called me and wants my opinion on this email he received from his people,. some of these numbers are crazy,. they are quoting $99,000 per year for training, we pay $6,000 per year for a full crew recurrent at PanAm in Miami, the fuel bum they quote is 1575 per hour, actual bum is 1250 to 1350 per hour, real numbers. how should I respond? tx Larry -----Original Message From: ssula em To: Larry < Sent: Wed, Oct 9, 2013 12:16 pm Subject: Fwd: B727 Super Dear Larry This came from my people how would you respond Dear Sultan, Re the B727 Super VIP, have been trying to put a number on the costs. On first thought is that this a very expensive plane to operate, as it was manufactured in 1969, which makes it 44 years old. Without seeing the current inspection status and what is due, it is hard to put a "cost' to the maintenance requirements. If the aircraft was to be operated on a "Dry Lease" — ( A dry lease is a leasing arrangement whereby an aircraft financing entity, such as GECAS and ILFC (lessor), provides an aircraft without insurance, crew, ground staff, supporting equipment, maintenance, etc.) then you would pay a fixed cost for the "lease" of the aircraft and then be responsible for all other direct operating costs plus maintenance. I have attached a breakdown of what the fixed costs are estimated to be. As you will see this is approx. $1,220,651 per year. The variable costs (ie the cost to fly the aircraft are estimated to be $13,617 per hour) PLEASE NOTE THIS EXCLUDES ANY MAJOR PERODIC MAINTENCE DUE (i.e. Yearly C checks and D checks as well as engine visits. EFTA00972381 The more hours you fly then your hourly cost comes down. However, for example, x2 of 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 3months down time. I also see a "C" check is due in Feb 2014 — on a 1969 vintage aircraft, you are looking at an open cheque book. EFTA00972382