No, we are not as busy as we have been - times are tight but we still battle on.
Sorry to be frank folks, but the reality of operating in the UK is that helicopter training is expensive. Helicopter Training is probably the most marginal business I have ever looked at financially speaking. On the whole we, as an industry, have been undercharging for what we do for the last 15 years.
Instructors:
In what other profession would you spend £50k to qualify and then be expected to work for £50 per flying hour that's £25 per hour by the time you have briefed. You only get paid when you fly and that's only when the weather is nice (my solicitor charges £200 per hour just to talk).
Owners:
They just about cover their normal out goings at £90 per hour on an R22 if it works hard - 40 hours per month - and that's without unscheduled maintenance. Not much of a return on capital.
Flying Schools:
A flying school making a gross profit of £50 per hour is doing well but will probably only just break even at the net level.
Fuel:
Our fuel has gone up by 43p per litre in the last 18 months - that's £17 per hour (R22) - our prices have only rise £12 per hour as that is all the market will stand, so we are £5 per hour down on last year already.
Landing Fees:
Airfields are looking to replace lost volume by increasing charges on base operators who are tied in.
CAA:
We all know what great value for money they are.
Insurance
£9,000 per heli, per year - regardless of how much you fly.
All said and done £310 per hour is expensive but it is a lot less than we should be charging - trouble is there are too many operators for a limited market - supply outweighs demand.
NB
These figures make no provision for insurance excesses on an accident or legal costs following a problem or incident. Given the potential risks (financial & physical) involved in what we do, this is crazy.
The fact is that none of us are in this business for the money, we do it because we love it and are prepared to operate at very fine margins to carry on. We are also proud of what we do and get a kick out of passing on the knowledge. Those who do it well will be a bit more expensive but will still be busy - ish.
The market is very fragile at the moment but our industry is not alone - we are top end so there is a certain set who will always be able to afford to fly - trouble is there are fewer of them around at moment.
No need to cry for us - its our own fault - but please be realistic about what you get for your money - use of an expensive asset, services of a professional instructor for a couple of hours, insurance, £70's worth of fuel, ATC service plus the most incredible experience you can have in my opinion.
If you don't want to pay the price - don't do it - go somewhere where its cheaper but work out why its cheaper, where are the costs being cut?
As regards paying up front - its your decision - a big discount may indicate a company looking cash flow benefits - that's not necessarily because they are in trouble - maybe just good financial management. On the other hand don't bleat if they go bust and you lose your money. A discount of £10 per hour may seem like having but is scarce recompence if you lose £1,000.
CH
