Is A Charter Business Viable

I have had many people say to me. “Not a bad little business, all you need is a van”. Running a business similar to ours involves more than what  people realise.

Firstly, to do Airport Transfers drivers have to obtain what is now newly named a PTD (Passenger Transport Driver). This was once called an F extension. This involves medicals and police clearances, and this has obviously a fee and needs to updated.

Next is the vehicles we use to do Airport Transfers in Mandurah. They must have a PTV (Passenger Transport Vehicle). To do airport shuttles etc or any charter work the vehicle must be inspected annually at a registered inspection station and then added online as a PTV.

The vehicle also needs to have an upgraded insurance on the license from 1A to 3F. Yet more expense for inspections and licencing. Obviously, the vehicle also has to have insurance which is a lot more expensive as it must be registered as a work vehicle and doing Airport Shuttles in Mandurah our vehicles have to be insured as commercial vehicles.

Finally, is what is known as an ODBS (On Demand Booking Service). Yet more outlay of money. This is a requirement to do what we do at Mandurah FIFO shuttles.  All the above is done through DOT (Department of Transport). The ODBS involves a fee dependent on the amount of vehicles you have and then on top of the annual fee is a 10% levy on every fare.

So as you can see to do any charter work such as Airport Shuttles, Transfers, Private Charters etc there is a fair bit involved.

As a rough guide our fare breakdown is as follows

Total Cost: $70.00

GST: $7.00

Levy: $7.00

Net fare: $56.00, and when you take out all the above plus running expenses there is approx. $30.00 remaining.

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