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Operational management

Operational management:

The operation of an aircraft is the reason for acquiring one. For airliners it is to provide airline services from point to point, for business jets and helicopters it may be to supply transport for company executives, or to fly an ultra high net worth individual around the world on business and leisure or it may be to have an aircraft for personal flights and to rent it to others while it is not being used. These scenarios require very different operational solutions. Jet Spectre can provide operations solutions for all these cases ranging from full management in an AOC (commercial operator) whereby the aircraft can also be chartered out to clients, to single team solutions whereby a dedicated crew and team operate the aircraft for the owner only.

Focus on what´s important – we will handle everything else.

Success is the result of professionalism. For Jet Spectre this means the expectations and needs of our customers take centre stage. Perfect planning, preparation and execution of flights – customized, flexible and confidential. As soon as you contact us the background work starts, like a clockwork mechanism. A team that is committed to you – precise, in time and accurate.

Within our Operational Management we take care of

  • Planning, preparation and execution of flights
  • The appropriate take-off and landing permissions
  • Organization of the catering
  • Cost-efficient organization of travel and accommodation for pilots and flight-attendants
  • Assumption of liability for all risks involved in the operation of your aircraft
  • Organizing of rental or chauffeured cars and helicopter services upon request

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Conclusion of the contract with the operator of the aircraft

The timely translation of the next payments for aircraft according to the schedule.

Organizational forms of relationship between the owner and the operator can be very different, but they define three main privileges of the owner:

Possibility of the owner to use own plane in time, convenient for it;
Possibility of the owner to replace the operator at emergence of disagreements between the parties;
Possibility of receiving by the owner of profit on effective commercial operation of the plane and transparent reporting under expenses and technical condition of the aircraft.
For the purpose of saving the main privileges of the owner involvement of the consulting companies already at a stage of the choice of the plane is expedient. The consulting company it is put more simply, and all process will be rigidly limited by time frames. In this case especially it is desirable to involve professional consultants who will help to make the plan of necessary procedures and to quickly make decisions.

The choice of the operator is defined by requirements of three parties:

  • The operator has to conform to requirements of the bank issuing the credit (in case of credit option of purchase of the plane). For example, at a delay of the next payment on the credit, the bank, as a rule, demands the right to suspend flights before receipt of payment.
  • The operator has to conform to requirements of the aviation authorities of the state for safety of flights and the organization of operational management
    (the existing license, presence of personnel of the corresponding qualification, etc.).
  • The operator has to conform to requirements of the Owner from the point of view of efficiency of control of airplane, quality of service of flights of the Owner, transparency of financial statements and respectability, a possibility of cancellation of the contract of operational management in real terms.
  • It is rather difficult to carry out the choice of the operator without involvement of the consulting company which will carry out the following complex of actions for selection of airline operator:
  1. Will conduct market researches of the aviation market of the countries expected for registration of the Aircraft, for the purpose of selection of airline operator. Process of the current monitoring of a state or changes in the European jurisdictions and market researches for the purpose of selection of the operator are conducted at the same time or almost at the same time. Practice shows that carrying out the tender between operators is the effective tool for receiving the most reliable information.
  2. Will organize the tender between operators for the purpose of clarification of terms of steering of the Aircraft offered by them. The consulting company involves in carrying out the tender the bigger number of operators is considerable, than it is necessary for final takeoff. It is connected with the fact that degree of interest of operators in participation in the tender is various. Not all Europeans want to deal with representatives of the Russian side, they can not are interested in the plane type which isn’t corresponding to the strategy of development for the park of the operator, etc.
  3. Will develop the special questionnaire for obtaining necessary volume of information for the comparative analysis of proposals of operators. When carrying out the tender, to operators the questionnaire containing more than 20 questions goes. At the same time only 10-15% of operators answer according to inquiry, the others give the general information or provide it in any form. The obtained data need to be systematized, submitted in the uniform form suitable for the subsequent assessment and comparison, to request additional necessary data.
  4. Will select not less than three airlines of operators for consideration and adoption of the relevant decision;
  5. Will carry out monitoring of reputations of the operators selected for the subsequent analysis. At the same time expert estimates from the Russian market of business aircraft of reputation, merits and demerits of operators turn out during the work with the Russian Owners.
  6. Will carry out assessment of an organizational condition of the operator. Taking into account characteristics of the fleet: quantity, types and age of the Aircraft, being in steering. Taking into account organizational technical capabilities: number of personnel, existence and qualification of technicians, existence of office or permanent representative of the company in Moscow;
  7. Will carry out assessment of opportunities for sale of flights: existence and number of the sales department, total of the sold flight watch in a year.
    The most important positions of inquiry to the operator are positions on structure of estimated expenses of the Owner at the set raid of the Owner and an estimated commercial raid, according to opportunities of the operator. Unfortunately, practice shows that operators hold back a part of operational expenses which are paid subsequently by the Owner and don’t join the operator in prime cost.
  8. Will carry out preliminary estimate of compliance of the operator to requirements of the credit institution financing the transaction. At the solution of the questions connected with crediting, the bank has the right to request the annual or two-annual balance sheet of the operator. Readiness of the company to provide this information speaks about degree “openness and transparency” the operator.
  9. Will define degree of readiness of the operator to provide financial information according to requirements of the Owner. The main objective is the analysis of all obtained information, drawing up a subjective (emotional) portrait of the operator, carrying out the comparative analysis of the offered terms and calculations for own method of calculation of direct variables and constant expenses.
  10. Will find out policy of operator for flight personnel, that is the attitude of the operator towards “” and “strangers” (Owner) to pilots.
    aircraft after its purchase will exercise control over preparation and signing of the Contract between the Buyer and the Operator on steering (and commercial service).

The contract for operational management of plane (Operation Management Agreement — OMA) requires special attention in a part:

Respect for inalienable right of property of the Owner to the plane and its rights to use it at discretion;
Order of providing by the Operator of the reporting and mutual settlements with the Owner;
Validity period and order of extension or refusal of further cooperation;
and terms of revision and change of terms of the contract;
and terms of cancellation of the Contract and drive of the Aircraft to the Owner or other Operator.
Within preparation of the Contract or at the first stage of its action will organize control over development by the Operator and the approval by the aviation authorities of maintenance instructions of Operation manuals:

Part A. General/Basic. Administration and control of operations manual;
Part B. Operations manual. General information and units of measurement;
Part C. Route and aerodrome instructions and information;
Part D. Training Syllable and checking Programs.
Need of control of development of Operation manuals is defined by its terms and cost. It is necessary that Operation manuals were ready by the time of Delivery or entering of aircraft into the commercial certificate, but are ordered right after signing of the contract with the operator. The cost of development of each management fluctuates from 4 000 to 10 000 euros depending on terms of production and the statement them by the aviation authorities. At the same time in various European states time of the statement can make of one month before half a year. The listed sections Operation manuals are given as an example at the Austrian registration of the Aircraft and its commercial operation.
The contract received from the operator has to be subjected to the careful analysis.

Contract type. There are two main types of contracts for steering of the Aircraft: lease contract (Lease Contract) and contract of operational management (Operation Management Agreement). In the lease contract of the Aircraft it is transferred by the Owner to the operator actually on the terms of commercial operation in which the owner participates on equal terms with other customers of charters. Danger to the Owner is that for the second day of signing of the contract the operator can already sign long-term contracts for leasing of this Aircraft with one or several customers. At the same time the Owner won’t be able to dissolve contracts before the expiration of their action. The contract of operational management which allows to keep privileges of the Owner about which it was mentioned above is the most acceptable for the Owner.

The main conditions which have to be enshrined in the contract of operational management, or in annexes to it:

Cost of operational management of plane (Management Fee). The cost of steering can fluctuate from 12 000 to 25 000 euros a month, can be a constant or change depending on the Owner’s raid. It will depend on how often the owner flies and for what time reports to airline operator about plans of the flights. These questions need to be discussed with the operator and to reflect in the contract. You shouldn’t be under a delusion with the small cost of steering — for example, 8 000 euros a month. It means that the operator “will receive in addition” a difference in the price on any other services in service of the plane. Objectively the price can be reduced if the plane performs commercial flights. In this case the operator is interested in receiving a commission for sales. It is necessary to understand accurately what is included steering of aircraft in the price, to define an order and forms of providing the reporting, interaction and the order of flights of the Owner.

Cost of steering of maintenance operation of aircraft (Maintenance Fee). In the section on maintenance operation it was said that the moment THAT for the plane comes by the principle “that earlier”: on reaching a certain raid or after certain time from the moment of performance next THAT. The operator in whose structure there is a special engineer monitoring the schedule of service can organize service differently. The first option – when to the Operator all the same how many money you will spend for THAT. In this case he will inform the Owner on need of carrying out Then when it is convenient to the operator. aircraft which is based in Moscow will make technical flight to Europe, will stay on THAT, and will return to Moscow.




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Canada, 171 East Liberty Street Toronto ON

Representatives: Russia, Poland, Singapore


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