This isn't about "raising the standards" of existing operators - the effective outcome is that existing small RPT operators will survive, and non-RPT operators will not.
Large operators will survive, small operators will not.
Corporates will survive, family businesses will not.
Currently one person can fill the roles of Chief Pilot, HOTAC, HAAMC, Safety Manager etc. When times are tough a business can contract and all the roles are filled, all the jobs are done, AOC requirements met.
The article makes much of the "scalability" but let's look at the cumulative effect. I have had this priced up for my business which is middle to large "family owned" charter shop, 4 pilots plus self plus 1 x Admin.
- Safety Management -outside contractor $35,000/year
- Part 42 CAMO - $15,000/year
- Part 145 maintenance +50% on current spend = ~$150,000
- Add approved MEL and SOM on each aircraft currently operated on Charter: $2,000 each (remember that a MEL and a SOM is operator specific so I can't short term cross-hire any more)
- Add Fatigue Risk Management System $25,000 OR add extra pilot due loss of operational flexibility $85,000
- Contract C&T services - about $2500/pilot/year about $12,500
Total effect - estimated - about $250,000 in the first year and then $200,000+ per annum going forward.
Add to this GA insurance premiums rising for all operators on average 20% and increased borrowing costs into next year because the USA is raising interest rates, even if Australia isn't, and the AUD is dropping so the banks are paying more for the funding too.
Lots of cheap aircraft, hangars, and business owner's houses going cheap from March 2021.
What THAT means, in turn, is that I need to find another $1.5m in revenue each and every year which translates to between 700 and 1200 hours of revenue flying, which in itself adds another 2 full time pilots, maintenance, fuel, CAMO charges, SMS charges, Check & Training costs.....
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Last edited by Horatio Leafblower; 18th Dec 2018 at 03:39.