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Why I Charge $545/Hour to Fly Passengers in My Helicopter
Maria writes in her blog: "..no one seems to understand the full cost of operating a helicopter charter business. I touched on operating costs in a very popular blog post I wrote back in 2010. It’s so much more than the cost of fuel." (www.aneclecticmind.com) More...
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Nice article on the Robinson, I recently wrote one on the Bell 47:
http://realcostofownership.blogspot.com/2013/09/why-fly-when-you-can-beat-air-into.html
Hint: results are the same. Helicopters are astoundingly expensive.
http://realcostofownership.blogspot.com/2013/09/why-fly-when-you-can-beat-air-into.html
Hint: results are the same. Helicopters are astoundingly expensive.
Thanks for that link & the original post. From reading those and a few others on the subject, I am reminded of the old commercials featuring 'Joe Isuzu'.
The owner of any business sometimes must laugh to keep from crying.
Thanks for keeping going anyway.
The owner of any business sometimes must laugh to keep from crying.
Thanks for keeping going anyway.
OK here are my two cents. First of all you are going at it the wrong way. You must separate fixed and marginal costs. Fixed costs such as insurance, hanger rent, annual inspections, and the cost of the copter etc. are there regardless how much you use the copter. Marginal costs are tied to usage. That is simply fuel, engine reserve, and maintenance (tires, brakes, etc.).
The cost of the copter is actually very simple whether you paid cash or financed it. You should figure the total cost of the machine ($400,000) as the basis. If you paid cash you are losing the interest you could be getting. If you financed it you know what your costs are. Either was the cost is the same. I use 5% as the cost of money (I used to use 10% before the economy crashed).
So your hourly cost is the sum of your marginal cost per hour plus your fixed costs divided by how many hours a year you fly your helicopter.
The cost of the copter is actually very simple whether you paid cash or financed it. You should figure the total cost of the machine ($400,000) as the basis. If you paid cash you are losing the interest you could be getting. If you financed it you know what your costs are. Either was the cost is the same. I use 5% as the cost of money (I used to use 10% before the economy crashed).
So your hourly cost is the sum of your marginal cost per hour plus your fixed costs divided by how many hours a year you fly your helicopter.
You explained it well. She considered both fixed and marginal costs and divided them appropriately over the time flown.
Considering fixed and marginal costs can lead one to different business strategy. But as far as accoubting for her costs and figuring out the cost to fly per hour, what the blogger/business owner wrote and what you wrote should arrive at the same figure.
Considering fixed and marginal costs can lead one to different business strategy. But as far as accoubting for her costs and figuring out the cost to fly per hour, what the blogger/business owner wrote and what you wrote should arrive at the same figure.
Look at all the areas we must be proficient at to be pilots. This kind of knowledge does not come overnight. Sure a newbie Private SEL has no idea of all the intricacies - but a pilot learns so much over their career - especially if they get into aircraft ownership.
I have several aircraft myself, they are all Gemini scale aircraft, but those aren't cheap you know! At least the fuel costs are low
I have several aircraft myself, they are all Gemini scale aircraft, but those aren't cheap you know! At least the fuel costs are low
http://www.aneclecticmind.com/2010/12/28/the-real-cost-of-helicopter-ownership/#.UjH3jid5mc0