[Kharon]

Old sayings.

One of the reasons ‘old sayings’ and adages are old is because they make sense; reflect truth and common – or garden sense. Since aviation kicked off one adage has stood the test of time. “To make a small fortune out of aviation – start with a large one”. Another is “If it floats, flies or fornicates – rent it”. Nonetheless, some adventurous souls still persist investing time, money and life blood into matters aeronautical; some have even made a return. The most practicable example being American ‘corporate aircraft’. Forbes (must read) have done a much better job of reporting the story than I could on a thriving business model. Sure, the aircraft costs money – lots of – but the business of American business is – business and the doing thereof.

America seems to recognise the importance of 'cost effective'; almost every small town has an airport – at least one. The town fathers realise that in order for the world to come to their village, it must have somewhere to land. Rural communities in Australia nearly all have an airfield of some description – even if it’s only task is to support the Air Ambulance (RFDS). But mostly, the money for the even the upkeep is grudged; the ever tempting developers’ and a quick buck a temptation and the endless whining of those who bought ‘cheap’ near airports about ‘noise’ a further incentive to let the airfield fight it’s own battles.

From a pure ‘business’ perspective many small communities do not have the volume of traffic to tempt established airlines to offer a direct ‘Bush to Big Smoke’ service. Anything much less than an average 60% load, each way, on a round trip is a stone cold looser for the ‘bigger’ aircraft. 10 seats, with six full is a profit. 20 seats with six passengers is unacceptable. On a purely Direct Operating Cost (DOC) basis, which is a fixed, usually ‘per hour’ basis the risks are considerable – in terms of ‘real’ (cash and no bullshit) money loss. So, air ticket cost must reflect the worst case scenario, else there’s no point in running a ‘service’. Dickens’ Mr Micawber said it best.


"Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

So what to do?

There are one or two business models which, although not perfect, could resolve some of the puzzle.

In primus, an ‘investor’ must be convinced that monies invested are not only secure but will meet the minimum return negotiated – the higher the perceived risk – the higher that return must be. This, standing alone, is a considerable challenge; many pairs of boots have been worn out tramping to meetings – with ‘the money’ – with nothing to show for the effort except a cobbler's bill and disappointment to carry home. However, for the sake of the exercise – let’s say a Fairy Godmother has miraculously appeared, prepared to stump up the cash. Once the ‘deal’ is done the next question is, inevitably, “when do we start?” Enter the dragon – operational approval. You dare not move without it.

If you carefully and honestly explain the time and the cost of gaining that ‘approval’ the small cloud of dust on the far horizon will be the Fairy Godmother scampering away – cheque book firmly clutched to her bosom. Back to square one. By now you are good mates with the cobbler.



At the very top of the ‘cost’ list, from your seed capital is ‘approval’. Aircraft can be purchased easily enough; crew can be found, base facilities are a small, but do’able task, the infrastructure and route support is manageable. In short – without an ‘approval’ you could be up and running within weeks of receiving seed and start up capital, breaking even within months and holding your own within a twelve month. I did say could…….

It is do’able – setting up a small air service; you need to mean it and it’s hard yakka for ‘poor bull’ but with community support and a little luck your investment will pay a small dividend. In shāʾ Allāh

So where’s the big ticket item problem? It begins and ends in the plush offices of your friendly neighbourhood CASA office. Where the very antithesis of good business practice resides and rules supreme. I’m not kidding, the ‘approval’ process is a living, breathing hell spawned daemon. A place where time has no meaning, urgency unheard of, cost a thing of another world; this after many gallons of midnight oil have been burned producing the thousands of pages demanded have been read, examined, returned for correction and returned to you – repeat at least thrice. (Three shall be the counting).

Eventually, the mountain of shelf ware gains tacit approval; the cast and crew exhausted and almost homicidal; it is then the real dragon appears. For up until now you have only shaken the filthy hand of the daemon – enter (stage right) ‘the beast’. Shall we keep the beast a secret from those who have not been initiated? “Yes” say the mob – sotto voce.

Let us leave it that – for once the endless editing and frustration of ‘on paper’ compliance is nearly done – you need to get not only operational, but jump through many fiery hoops – like trying to operate to manufacturer check list and inside aircraft certification; there are many homemade recipes for this; all subjective, without defence and – subject to whim.

So, for those in ‘the bush’ wondering why they only have a slim service on a skinny route, often subsidised; and, no competition to reduce airfares – don’t look to the government for answers; for ‘tis their approved ‘safety’ systems which rules, without check, balance or even a modicum of sanity. Competition is an unrealistic dream; that’s before the major players cut the competition’s nuts off; they can and will (with malice) sustain a loss to keep competition out of the market; with a little help from their friends.

Aye; ‘tis a wicked old world – but: then, it always was. QED.

Toot – toot.