Setting up a charter helicopter business
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Setting up a charter helicopter business
Hi Everyone,
I am looking at setting up a charter helicopter business in SA. I don't have any experience in the industry, but I do have capital and a sales channel to the safari lodges throughout Africa. I'm looking for further information on what this business entails, costs, risks, market size, margins and everything else. Ultimately I would like to partner with a pilot for an equity stake and salary.
Could anyone on here offer me some advice or direct me to the right resources which would help me?
Many thanks for any help you can give me.
Regards,
Tim
I am looking at setting up a charter helicopter business in SA. I don't have any experience in the industry, but I do have capital and a sales channel to the safari lodges throughout Africa. I'm looking for further information on what this business entails, costs, risks, market size, margins and everything else. Ultimately I would like to partner with a pilot for an equity stake and salary.
Could anyone on here offer me some advice or direct me to the right resources which would help me?
Many thanks for any help you can give me.
Regards,
Tim
Join Date: May 2010
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Simple answer - dont even think about it.
Longer answer - There are plenty of people in the same business losing money already. With no experience they will eat you for breakfast and spit out the bits. The only way to make a small fortune in the aviation business is to spend a very large fortune and pray for miracles.
In the unlikely event that you avoid going spectacularly bust you would still have been better off leaving the money in the bank to earn interest.
Longer answer - There are plenty of people in the same business losing money already. With no experience they will eat you for breakfast and spit out the bits. The only way to make a small fortune in the aviation business is to spend a very large fortune and pray for miracles.
In the unlikely event that you avoid going spectacularly bust you would still have been better off leaving the money in the bank to earn interest.
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Tim,
Sorry to burst your bubble but The Ancient Greek is dead right.
The industry in SA is relatively small and just about every sector in the GA industry is sewn up by one or more operators. Coming in as an outsider, as TAG says, would be financial suicide.
There have been, and there will be many like you who share the same dream. While it would be great if it were different, the reality is that the charter industry in SA - either fixed wing or helicopter - is no place for a start-up operation.
As I say, I wish it were different.
Best of luck.
JA
Sorry to burst your bubble but The Ancient Greek is dead right.
The industry in SA is relatively small and just about every sector in the GA industry is sewn up by one or more operators. Coming in as an outsider, as TAG says, would be financial suicide.
There have been, and there will be many like you who share the same dream. While it would be great if it were different, the reality is that the charter industry in SA - either fixed wing or helicopter - is no place for a start-up operation.
As I say, I wish it were different.
Best of luck.
JA
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I was involved in the operation of a helicopter company in Cape Town and to be frank, I don't even know where to start.
As has already been said, you are already at a huge disadvantage given the saturated market and your inexperience. Unless you arrive on the scene with a modern fleet, unique business plan, extensive marketing strategy and large contracts already in place (government, medivac etc), they will undercut prices and suffocate you. What do you mean sales channels to African lodges? Did you discuss your idea with these lodges? It always sounds like a great idea to the safari lodge guys until you actually get down to the business side of things...then it goes South. Believe me. (unless you own these lodges) Get them to commit to a guaranteed number of hours per month then we can talk. Plus where exactly in Africa (it is rather big)? How far do you think you can go with a helicopter? Are you sure your idea is feasible? If it was feasible, it would have been done. This really baffles me...
The operational side of things is a nightmare too. First, you need the Part 127 AOC
SOP's, MOP's, you are required to have responsible personnel: QA manager, Flight Ops Manager, Safety Officer etc etc, deal with the CAA audits and inspections...The list is endless. It is a blady headache!
Are you aware of the cost of operating, maintaining and crewing helicopters? Are you aware of the amount of hours you need to do in order to be profitable? You cannot even fathom the costs involved in operating just a small fleet of 2 helicopters!
Apologies if I am not writing in a methodical manner, there are just so many alarm bells ringing I'm battling to concentrate! My advice - don't. Please!
But if you are adamant:
Good luck
As has already been said, you are already at a huge disadvantage given the saturated market and your inexperience. Unless you arrive on the scene with a modern fleet, unique business plan, extensive marketing strategy and large contracts already in place (government, medivac etc), they will undercut prices and suffocate you. What do you mean sales channels to African lodges? Did you discuss your idea with these lodges? It always sounds like a great idea to the safari lodge guys until you actually get down to the business side of things...then it goes South. Believe me. (unless you own these lodges) Get them to commit to a guaranteed number of hours per month then we can talk. Plus where exactly in Africa (it is rather big)? How far do you think you can go with a helicopter? Are you sure your idea is feasible? If it was feasible, it would have been done. This really baffles me...
The operational side of things is a nightmare too. First, you need the Part 127 AOC
SOP's, MOP's, you are required to have responsible personnel: QA manager, Flight Ops Manager, Safety Officer etc etc, deal with the CAA audits and inspections...The list is endless. It is a blady headache!Are you aware of the cost of operating, maintaining and crewing helicopters? Are you aware of the amount of hours you need to do in order to be profitable? You cannot even fathom the costs involved in operating just a small fleet of 2 helicopters!
Apologies if I am not writing in a methodical manner, there are just so many alarm bells ringing I'm battling to concentrate! My advice - don't. Please!
But if you are adamant:
- Get somebody on board who has experience in the helicopter industry of SA. This is absolutely imperative otherwise your competitors and the CAA will rip you to shreds.
- Make sure you understand ALL your competitors - what they offer, what they operate, pricing etc.
- Have LOTS of capital in the bank to keep you going for a long time without making money
- Make sure you have an absolutely sound business plan covering every single aspect of the business - location and marketing are big concerns.
- Choose your machines wisely - although you may want to offer a 'unique' product by having a 'unique' fleet, it will end up costing you lots of money! Trust me, I know.
- If you do decide to go with this safari lodge idea, the only way it will work is to have contracts in place with a minimum number of hours per month. That is not going to happen.
- Get a good team together...to think you can do it yourself at this stage is just silly.
Good luck
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Hi
Good day sir.
I have applied for a part 127AOC with the SACAA. Will be up and running hopefully in about 2 to 3 months.
I either want to sell it all out, or have a partner 50/50. As I will only use it on the EC130 and 2 R44's. EC130 doing only VIP flights for the company I fly for in the Johannesburg area, and the R44's is doing game capture operations all over SA.
Please let me know , and we can maybe meet and discuss this.
Are you in South Africa?
Im in Pretoria.
[email protected]
I have applied for a part 127AOC with the SACAA. Will be up and running hopefully in about 2 to 3 months.
I either want to sell it all out, or have a partner 50/50. As I will only use it on the EC130 and 2 R44's. EC130 doing only VIP flights for the company I fly for in the Johannesburg area, and the R44's is doing game capture operations all over SA.
Please let me know , and we can maybe meet and discuss this.
Are you in South Africa?
Im in Pretoria.
[email protected]
Join Date: Jul 2008
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Tim,
Noting the very realistic advice from a number of our colleagues, I am sure you are minded to take their advice and continue your research. There are naturally major challenges and issues in trying to operate, but nothing that is not impossible to overcome with a good business plan, sage advice and determination + luck of course mix with a few prayers!
Very happy to offer advice and meet up in UK or SA as based in both countries, I have direct access to good aviation business contacts who can provide you with all the operational and business advice you need. To note and as highlighted in every post the SACAA is a nightmare to navigate these days, but viable with the right support.
Sun Helicopter is also well worth exploring as are others.
Good luck with whatever to choose to follow.
Chris M
[email protected]
Noting the very realistic advice from a number of our colleagues, I am sure you are minded to take their advice and continue your research. There are naturally major challenges and issues in trying to operate, but nothing that is not impossible to overcome with a good business plan, sage advice and determination + luck of course mix with a few prayers!
Very happy to offer advice and meet up in UK or SA as based in both countries, I have direct access to good aviation business contacts who can provide you with all the operational and business advice you need. To note and as highlighted in every post the SACAA is a nightmare to navigate these days, but viable with the right support.
Sun Helicopter is also well worth exploring as are others.
Good luck with whatever to choose to follow.
Chris M
[email protected]
