Hello all - I am back online - as reported under Hangar Talk. First time I am reading this.
A while ago - shortly after my pc was stolen, I flew to Rhino from Microland after hearing 09/27 was being tarred. I arrived overhead, and could not believe my eyes - I was expecting a litle tar covering with dodgy edges spread across the runway . Instead I found a long and beatiful runway for BIG aeries. The final tarring was still setting, so there were tyres and a big white cross over the runway - I proceeded on (I Think?) 10/28 - any event this is not the point - I landed on the dirt runway to the south.
As I taxi'd in to Alex's office to go and greet and sky a cup of coffee the magnitude of this runway sunk in - and later I heard about the cost.
I still cannot make sense of spending millions for a runway just a hop away from Kittyhawk - but also - if I understand correctly - Alex and all the other tenants are not the owner - and the owner - not our fellow pilots - decided to build this runway. Sorry if I am wrong - I am not meaning to step on toes or be a "know - it - all" just trying to make sense.
If my inference is correct, it HAS to mean that the OWNER OF THE LAND has bigger plans - airport? Aero estate? I don't know.
All I know is that you don't spend millions in the middle of nowhere, and expect to make a profit from landing fees. I have heard figures of two million and 8 million and and.
I Assume for purposes of the following that the runway cost only 1 million. A pre-tax risk free return in our current environment is about 5,5% Therefore a Rand return of R 55 000 per annum, pre tax, on the absurd assumption that your outlay was R 1 million. That means that you will have to have 1100 landings, billed, to compete against a Money Market account with your bank. If the cost is more than a million (which it is!) the sommetjie becomes even more absurd.
My conclusion - there is something bigger afoot in terms of what the investors of the runway have in mind. What this is, I don't know - but I know that you have to be very, very, stupid to build something like that, there, and expect landing fees to cover your return on investment.
My guess: Someone has applied for zoning / services / erfs / - aero estate. Just a shot in the dark. Lets see.
