GERS / Seaborne Loan
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.
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.
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."
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 😉 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 🙂 🙂
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.
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!