Helicopter ownership is an expensive proposition. This is not like owning a Piper Warrior where the purchase price is the main cost.
The helicopter purchase price is just one expense, if being financed you may have to put down 20% of the purchase price versus 5-10% for an airplane. You will need to hangar it as most helicopters are delicate machines and should not be exposed to the elements.
Insurance is a major cost, you also need hull insurance if the helicopter is financed. A B206 worth about 350,000 USD with liability and hull insurance would be in a range of 25,000 to 35,000 a year if it’s used for air taxi, total private flying may be a little less expensive. An operator’s base going rate for a B206 would be $600-700/hour. Some owners who lease back their helicopters get about $500/hour. With a DOC (direct operating cost) of $300/hour this leaves about $200/hour to pay the fixed costs
Your ongoing fixed expenses would include:
Monthly payment
hangar fee
Insurance
Annual inspection and routine maintenance
The total fixed expenses could easily run $5,000-6,000 per month.
Most leasebacks are set up as a business, so if you incur a loss for the year you can offset it against your income taxes.
Purchasing an R44 can reduce most of the above numbers. Some insurance programs are set up that are tailored for R22’s & R44’s and are “reasonable.” I believe the R44’s DOC is about $150 hour.
Helicopters are easy to buy and hard to sell, unless you lower the price enough. I have seen helicopters listed for sale be on the market for 12-18 months.
Used helicopters do not really depreciate, their value is basically determined by the amount of life left in their life-limited components. The rule of thumb is 70% of a helicopter’s value is within those components.
Good Luck and let us know your thoughts.
P.S. All numbers above are in U.S. dollars. Rental rates must be higher in the U.K.
