Profit from single heli ops

[Heli vision]

I know this has been done to death somewhat, so apologies, but it still leaves me scratching my head, and it's doing my nut in, so please humour me.

I don't want to be too specific, but lets say for example a UK company has one single-engine turbine machine, focusing mostly on tourist type ops. Maybe a little film and obviously whatever else they can pick up. But mostly sightseeing.

How the hell do they stay in business, let alone make it pay?? I can't for the life of me see how its viable with one machine.

Anyone care to suggest any figures, utilisation rates etc that would make it work.

The reason I ask is because a.) I'm naturally curious about such things, and b.) I've toyed with the idea myself, but can only see the big pot of money turning into the smaller pot of money scenario.

Anyone shed some light on the subject? :D

[HeliTigg]

Should it not be possible with a wealthy owner? If you can find someone who is willing to have you run a chopper for minimal costs (a bl**dy difficult thing, even for an established charter Co. i understand), could it not in theory be possible to make profit on it?

However it seems HeliOps is not an industry where profits are common, i've been researching the area myself. Apparently there are only 2 Heli charter companies in the UK who are making a profit. So i think starting a new company in that environment would be a really hard task.

Good luck if you decide to try tho!

Tigg

[t'aint natural]

Strange business we're in.
I'd say 70 per cent of the helicopters where I park are tax write-offs.
Furthermore, there are a large number of (predominantly smaller) charter operators that are effectively owned by hobbyists and bankrolled from outside.
Makes it difficult for those who have to make a living.

[The Nr Fairy]

I went through some figures with an Ops manager the other day, and about the only way pleasure flying pays is if a) it's prearranged to depart from a licensed aerodrome or b) you own the aircraft and are thus paying the true cost.

Otherwise the positioning, fire cover, ground handler fees and all the rest of it soak up any potential profits.

[Heli vision]

Thanks for the replies. Confirms my own thoughts on the subject.

I have a flying acquaintance from many moons ago who set up such a business. I lost touch with him a long time ago, and he certainly wasn't rich at the time - so this has doubled my curiousity.

If the helicopter is financed from a loan, I just can't see how the loan can be serviced with all the other overheads plus actually making a profit.

A wealthy backer does seem the only way. Strange business this.

;)

[StevieTerrier]

Making a profit isnt easy, whether you have one or a dozen helicopters. There are always more operators than work, that's a fact.

About 10 years ago, we used to get paid to attend shows, events etc with our pleasure flying operation. Then a couple of new start-ups appeared, all pitching for those same events. Within a couple of years, we were in the situation where you had to pay the event organisers up to £3.50 per person flown, cos if you didnt somebody else would. We went from having two pleasure flying teams at different events Saturdays and Sundays throughout the whole summer, to packing it in completely in the space of two seasons. Whats the point of losing money?

Of course, if you visit the same shows with more or less the same visitors every year, the numbers flown drop dramatically year on year, so the new start-ups came and went.

The big problem today is the preponderance of new start-ups which begin with a private owner employing a full-time pilot and then, when he realises how much he is spending , thinking it would be a great idea to offset some of his costs by setting up an AOC operation to maximise his under-utilised pilot / helicopter.

How to have any chance of making (any) money IMHO?

(1) Well first thing you need is a "niche" product with a large local marketplace - and it needs to be very visible (save on advertising costs) Example - Grand Canyon Tours

(2) Dont own the helicopter - in the winter it will sit for months unused costing you a fortune in insurance, hangarage, etc. Yes I know that if you own it the hourly rate will end up cheaper, but the first time you break something expensive, you are skint again.

(3) Find yourself a friendly AOC operator to "piggy-back" onto

(4) Operate from a licensed field where fire crew and fuel is already available

(5) Persuade your family that they would love to spend every weekend loading people into the helicopter for nothing.

(6) Have a well-paid full-time job so you can afford to pay your household bills.

Simple really.

[headsethair]

Having recently witnessed at close hand a battle for a commercial contract, I would have to state that the worst enemies in this business are your competition. There will always be someone somewhere who will cut costs and operate non-profit, just to keep a machine working.

With the burden of regulatory requirements for Public Transport, the only areas where costs can be (legitimately) cut are wages and leaseback fees.

And there are plenty of owners of machines out there who will accept a minimal leaseback deal just to cover some of their own private flying costs.

That's why this business will never develop - unless demand exceeds supply. Just won't happen.