[IYCHARTERS]

I run a small charter company. We have been using charters from another group to charter our yachts. We plan on having 1 cruise per month. For our cruises we require a 12 passenger 6 stateroom yacht. As you may know these are quite expensive. In your best opinion what would be the way to go for us. Our yearly yacht budget is $2.8 million plus expenses. Would it be best for us to 1. continue chartering yachts every month. (we do get tax ride offs for this expense) 2. Use A time share program and purchase mulitple shares (which is VERY expensive) or 3. Buy a yacht. ( remember we need a 6 stateroom 12 passenger motoryacht). Any suggestions would be helpful. Thanks

Chris

[AMG]

Charter is always cheaper and if you do repeat charter with the same yacht you should be able to get a good discount as well. Otherwise the idea with chartering is the freedom to cruise in different areas with different yachts.

[calicaptain]

In general, the larger the yacht (and newer), the less it has to charter to break even on expenses. For a boat like Excellence III, the owner probably has to charter about 12-15 weeks a year, then the rest of his usage is almost free. Except for hullouts, and major repairs. However, realize that the charter market is a demand industry, if the purpose of the boat is for profit, the boat has to be available at all times and in the best locations i.e. med and carib. With your budget and 12 weeks of charter, I think you are better off collecting your commission on each charter. That way, your clients have access to an assortment of boats in many locations. As for time shares, I don't know much about them, but I don't see the advantage in your situation. That is the latest way for brokers and managers to make money, not charter companies. But what do I know?

[SAB]

Has anyone heard how the 'Whistlejacket Club' ownership scheme is going?