Business metrics are an important part of effectively
managing a business. It goes beyond the
basics of costs, revenues and profits.
One such calculation is return on investment or ROI.
ROI has many uses and can be applied to both invested
capital as well as investments in human capital. The capital of the brand, people, and
productivity are hard to calculate, however that does not make them any less
real.
ROI also exists in the buying and selling of aircraft. Most people would not think of buying a
multiple million-dollar asset without enlisting the help of experts. Most often those experts come from outside
the company as the cost benefit or ROI of maintaining that expertise in-house
is not attractive.
What we have seen in the aviation industry is that more and
more people are realizing that the cost of hiring an expert is far less than
their own in-house ROI. They do the same
for their commercial real estate, or in house counsel who relies on outside legal
experts in matters they do not do day in and day out. Simply put, unless your business is in the
buying and selling of aircraft, your human capital resources are best utilized
in other more productive portions of the business. Executives running the day to day business
and flight departments managing the complexity of operations with a focus on
safety.
Any business executive knows there is more than just looking
at the numbers. What makes you
successful is the interpretation of the facts and applying them to retain the
best results. The internet has made
information on aircraft more readily available, but the devil is in the details
of understanding and properly applying the data.
Over the past 30+ years I have seen or heard of various
executives and flight departments think they knew all of the answers and make
costly mistakes. From buying the wrong
plane for the wrong reasons, or buying a “deal” that really wasn’t a deal, or
not finding out the real market on the new plane. We have all heard of the story of buying
planes without an adequate pre buy to find out at the next inspection that they
need to spend hundreds of thousands of dollars.
Mike McCracken
President
Hawkeye Aircraft Acquisitions
Office 727 796 0903
info@hawkeye-aircraft.com
www.hawkeye-aircraft.com
"See the Difference"