aircraft costing
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Join Date: Dec 2002
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aircraft costing
how do charter operators come up with hourly rates for aircraft?
take a chieftain for example, the going rate appears to be approx. $900- per hour. how do they come up with this figure? does it include pilot costs, finance payments, fuel on going maintenance etc..
also, prop on a chieftain has 1150 soh, what does this mean and how long till it needs to be replaced if in charter category...
am really interested in the specifics...
regards
take a chieftain for example, the going rate appears to be approx. $900- per hour. how do they come up with this figure? does it include pilot costs, finance payments, fuel on going maintenance etc..
also, prop on a chieftain has 1150 soh, what does this mean and how long till it needs to be replaced if in charter category...
am really interested in the specifics...
regards
Join Date: Aug 2002
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Off the topic a little
Maybe this can help portre.........
Does any have or know of a site where you can compare aircraft performance and operating costs.
Things like initial costs, TBO's, fuel flows, cruising speeds, payloads, etc.
There has to be something out there for people are allways asking.
The net has Girls with Camels, and I sure never asked to see that1
Keep 'em coming!
Does any have or know of a site where you can compare aircraft performance and operating costs.
Things like initial costs, TBO's, fuel flows, cruising speeds, payloads, etc.
There has to be something out there for people are allways asking.
The net has Girls with Camels, and I sure never asked to see that1
Keep 'em coming!
Join Date: Oct 2002
Location: nth west-- Australia
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Im not a full bottle on it but my understanding the first part of a bussiness is to get the operating costs.
You have the outlay of the craft ,or on a lease basis.
as in a R22 chopper for instance you have 100 hour servicing
parts have to be replaced at certain intervals and at 2200 hours your up fir a 175 grand rebuilt.
then theres insurance---the more hours you fly the lest cost per hour
then may be hangar fees ,landing fees etc.
then x gallons per hour
pilots wages etc.
.So add all the expenses up and get the total cost per hour.
Charge anything less and you go broke.The rest is competition--if you think you can make a living then under cut the guy next door
You have the outlay of the craft ,or on a lease basis.
as in a R22 chopper for instance you have 100 hour servicing
parts have to be replaced at certain intervals and at 2200 hours your up fir a 175 grand rebuilt.
then theres insurance---the more hours you fly the lest cost per hour
then may be hangar fees ,landing fees etc.
then x gallons per hour
pilots wages etc.
.So add all the expenses up and get the total cost per hour.
Charge anything less and you go broke.The rest is competition--if you think you can make a living then under cut the guy next door
Ahhh, Portre. My favourite subject! However, you didn't clarify whether your question pertained to Australia, or the sane world of aviation - wherever that may be!
"how do charter operators come up with hourly rates for aircraft?"
In Australia, an operator checks with other operators in the area, then deducts $100 per hour from the lowest competitor's rate. If that hourly rate results in income below operating cost, remove pilot wages or don't log flights on the Maintenance Release.
"take a chieftain for example, the going rate appears to be approx. $900- per hour. how do they come up with this figure?"
In their dreams I'd imagine. Whilst the rate should probably be $900 plus, I doubt any operator is getting it! If they are, there's a chance the pilots are at least getting paid something, even if it is below the Award.
"...prop on a chieftain has 1150 soh, what does this mean and how long till it needs to be replaced if in charter category..."
"SOH" means since overhaul, therefore the MR and prop log book indicate the prop has flown 1,100 hours since it was overhauled (with used blades that only just met spec), plus the hours not recorded on the MR and in the Log Book. I can't remember the overhaul period for a Chieftan prop (probably varies according to AD status etc, but probably 1800 hours), but generally the overhaul period (in hours) is in direct proportion to the distance (in kilometers) between the aircraft home base and the nearest CASA office.
"am really interested in the specifics..."
Well, if you are interested in specific answers to your questions in any sane world of aviation, PM me and I'll send you aircraft operating cost factors.
If you don't believe me, check with the experts, like Gaunty et al.
"how do charter operators come up with hourly rates for aircraft?"
In Australia, an operator checks with other operators in the area, then deducts $100 per hour from the lowest competitor's rate. If that hourly rate results in income below operating cost, remove pilot wages or don't log flights on the Maintenance Release.
"take a chieftain for example, the going rate appears to be approx. $900- per hour. how do they come up with this figure?"
In their dreams I'd imagine. Whilst the rate should probably be $900 plus, I doubt any operator is getting it! If they are, there's a chance the pilots are at least getting paid something, even if it is below the Award.
"...prop on a chieftain has 1150 soh, what does this mean and how long till it needs to be replaced if in charter category..."
"SOH" means since overhaul, therefore the MR and prop log book indicate the prop has flown 1,100 hours since it was overhauled (with used blades that only just met spec), plus the hours not recorded on the MR and in the Log Book. I can't remember the overhaul period for a Chieftan prop (probably varies according to AD status etc, but probably 1800 hours), but generally the overhaul period (in hours) is in direct proportion to the distance (in kilometers) between the aircraft home base and the nearest CASA office.
"am really interested in the specifics..."
Well, if you are interested in specific answers to your questions in any sane world of aviation, PM me and I'll send you aircraft operating cost factors.
If you don't believe me, check with the experts, like Gaunty et al.
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Torres
Some may say what a cynical post, others will think been there, done that, others will think I can change all this and make a quid somehow, and so it goes on and on and on, only way to make a small fortune in GA is to start with a big fortune.
Prospector
Some may say what a cynical post, others will think been there, done that, others will think I can change all this and make a quid somehow, and so it goes on and on and on, only way to make a small fortune in GA is to start with a big fortune.
Prospector
Join Date: Mar 2000
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Alas there lies the problem....................................
No point going to work for free now..........
I was once told a saying...
"Maximum effort minimum profit"
So I changed that saying to suit myself...
"Minimum effort maximum profit"
Why put a plane out for next to nothing and struggle?
Operators need to wake up and smell the roses. Aircraft are costing more to maintain. Therefore that little part you put away for a 100 now needs to be a big part. On a 210 realistically you need to be putting away $90 hr just for the routine maint!
But then again what would I know? I'm just a young buck...
No point going to work for free now..........
I was once told a saying...
"Maximum effort minimum profit"
So I changed that saying to suit myself...
"Minimum effort maximum profit"
Why put a plane out for next to nothing and struggle?
Operators need to wake up and smell the roses. Aircraft are costing more to maintain. Therefore that little part you put away for a 100 now needs to be a big part. On a 210 realistically you need to be putting away $90 hr just for the routine maint!
But then again what would I know? I'm just a young buck...
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another type of business ethos is one of building assets, for example, at the end of the year if all bills\wages are paid, engine prop reserves intact, in four more years you'll own the aircraft.
