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GERS / Seaborne Loan

thoogie
January 16, 2010 09:24AM

Registered: 13 years ago
Posts: 41

Attention aviation buffs, please educate me.

The VI Daily News' story about the above topic stated that $2.5 million of the $3.3 million loan from GERS to Seaborne was for overhaul maintenace on two of its planes that required every 3 years.

Doing the math that's $2.5 mil / 2 planes / 3 years / 365 days = $1141.55 per day that needs to be allocated per plane for overhaul maintenance. I assume daily maintenace is another allocated operating expense.

Are these numbers accurate, fudged, or vary based on the age of the plane? A quick look at Wikipedia said a new Twin Otter DHC-6 cost $2 million.

I'm only familiar with gov't corruption and kickbacks not airplane repairs.

Re: GERS / Seaborne Loan

br1k
January 16, 2010 09:49AM

Registered: 8 years ago
Posts: 277

deleted, better answer below.



Edited 3 time(s). Last edit at 01/16/2010 10:14AM by br1k.

Re: GERS / Seaborne Loan

br1k
January 16, 2010 10:04AM

Registered: 8 years ago
Posts: 277

Here is more specifically on Seaborne. Looks like operating in salt-water marine environment puts additional requirements on D checks. Perhaps it is for two planes after all.

[www.flightglobal.com]

And I quote:
"Nonetheless, as Seaborne's seaplanes operate in salt water, they must undergo major overhaul every three years at a cost of about $1.5 million each, which is about equivalent to the bluebook value of the actual aircraft."



Edited 1 time(s). Last edit at 01/16/2010 10:13AM by br1k.

Re: GERS / Seaborne Loan

Lizard
January 16, 2010 10:22AM

Registered: 10 years ago
Posts: 1,842

The cost of a new otter is 15million not 2 million as per wiki!

Re: GERS / Seaborne Loan

br1k
January 16, 2010 10:32AM

Registered: 8 years ago
Posts: 277

Yes, in my quote they talk about a "blue book value" for the comparable DHC-6, meaning the same type/age as the one Seaborne runs. So yes, presumably they could just discard their planes every 3 years and buy other used Twin Otters at about the same cost wink However, the supply of used planes is kinda limited, and most Twin Otter operators probably don't just want to part with them. Plus - you still have to do the D check at the same price anyway, its not like the other guys will do it for you and then sell smiling smiling

So the bottom line is - it is nice that we have penny-wise people here but I think Seaborne isn't really ripping anyone off.

Re: GERS / Seaborne Loan

terry
January 16, 2010 10:47AM

Registered: 13 years ago
Posts: 2,543

Plus most of any used planes of this type would have been used in the same environment otherwise they probably wouldn't be for sale.

Re: GERS / Seaborne Loan

Lizard
January 16, 2010 11:09AM

Registered: 10 years ago
Posts: 1,842

I don't understand the concern about a company that provides a much needed service with an excellent safety record, the amount of a "Loan". What's the Point here?

Re: GERS / Seaborne Loan
avatar

Bombi
January 16, 2010 02:16PM

Registered: 11 years ago
Posts: 2,104

On the radio I heard about the GERS loans. The seaborne loan was said to be for maintenance, aircraft accusition and operating expenses.

Carambola was also loaned 16 mil for operating expenses and maintaining the Marriott brand

Re: GERS / Seaborne Loan

stiphy
January 19, 2010 06:25PM

Registered: 9 years ago
Posts: 956

If nothing else this serves to show why ticket prices are not $29 each way or something like that between islands.

It does drive me a crazy to think that I can go from Baltimore to say Cleveland for like $39 each way on Southwest but have to pay 3 times as much to go to a much closer St. Thomas...but a breakdown in costs like this make it clear why this is the case!

Sean

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