Operating cost threshold
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Operating cost threshold
Recent threads on the so-called 'new-porducts' from Bell and the resurgence in interest on the 'why so expensive' thread have led me to think about the threshold of operating cost that make helicopters competitive with other forms of transport.
For example I was recenty shown some detailed analysis that demostrated that if a two seat helicopter could be operated for £60/hr then it was cheaper to fly from Birmingham to London, than it was to take a Virgin train! Somewhat of an extreme case i'm sure, however I am interested to know the following:
For operators around the world, what percentage reduction in operating cost for a two-seat helicopter would double the amount work that would be commerically viable in the machine? In other words how much work do you turn away on the basis of cost, and what are these customers able to pay?
CRAN
For example I was recenty shown some detailed analysis that demostrated that if a two seat helicopter could be operated for £60/hr then it was cheaper to fly from Birmingham to London, than it was to take a Virgin train! Somewhat of an extreme case i'm sure, however I am interested to know the following:
For operators around the world, what percentage reduction in operating cost for a two-seat helicopter would double the amount work that would be commerically viable in the machine? In other words how much work do you turn away on the basis of cost, and what are these customers able to pay?
CRAN
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This isn't directly relevant to your post, I know, but there exists a filmed interview with Igor Sikorsky in which he tells of someone who approached him and asked, quote "'Mr Sikorsky, can you tell me when the helicopter will be faster than the aeroplane, can you tell me that?' and I said, 'yes, I know that, and it is never'. And he asked me 'can you tell me when the helicopter will be faster than the aeroplane, can you tell me that?' and I said 'yes, I know that, and it is never. However, the helicopter can do things that nothing else can do, and that is when you use a helicopter'."
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I have a 2 seat machine that I use for business on a regular basis, it is only really cost effective when you value your own time in excess of £200 h.r. It would be more usefull if I had a pilot who could just drop me off at a clients location and then go and do all the shut down, refuell, pay landing fees etc and then have it ready rotors running when I arrived back in the taxi, then it might just be cost effective but you would have the expense of a pilot to pay so even then probibly not.
Mind you I have tried to convince the tax man that it is cost effective
and at the end of the day it beats the hell out of driving!
Mind you I have tried to convince the tax man that it is cost effective
and at the end of the day it beats the hell out of driving!
Cool as a moosp
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CRAN I only know a bit about the cost of training in this part of the world and it certainly puts people off. But you know what? It does not deter the total keen people who have always wanted to fly rotary. They make sacrifices and save up for it.
If it was half price, I do not believe twice the numbers (or more, as the Laffer curver would suggest) would come to train. Flying is a vocational aim or a selected pastime. The former requires sacrifice, the latter requires a level of wealth.
The auto companies of the world use a measure that when the GDP per head of a country reaches a set level, somewhere around US$4500, then cars start to be bought. A similar calculation (well, napkin and biro guesswork...) for the use of helicopters for leisure travel and sport flying shows a figure in the early twenties, say US$22,000. But when your look at countries with this level of wealth, you still see clubs and schools struggling to attract new pilots.
Price is not everthing, attitude and education sometimes play a part. A construction company here in HKG recently got a moderate contract to rebuild a pumping station on an offshore island. Most quotes used barges to move the equipment but one offered a helicopter. The latter won the contract on cost, much to the amazement of all concerned.
Didn't answer your question, but you get the drift.
And rotoboater, you may be pleasantly surprised to find that a part time pilot might be the answer. If they can save you the administrative hassle of a flight operation, you may be able to justify a part timer. e.g. a sub contract from a local flying school or a "retired" 58 year old who does not require the full social security millstone. And can your accountant put a value on the halo effect of arriving with your own pilot?
If it was half price, I do not believe twice the numbers (or more, as the Laffer curver would suggest) would come to train. Flying is a vocational aim or a selected pastime. The former requires sacrifice, the latter requires a level of wealth.
The auto companies of the world use a measure that when the GDP per head of a country reaches a set level, somewhere around US$4500, then cars start to be bought. A similar calculation (well, napkin and biro guesswork...) for the use of helicopters for leisure travel and sport flying shows a figure in the early twenties, say US$22,000. But when your look at countries with this level of wealth, you still see clubs and schools struggling to attract new pilots.
Price is not everthing, attitude and education sometimes play a part. A construction company here in HKG recently got a moderate contract to rebuild a pumping station on an offshore island. Most quotes used barges to move the equipment but one offered a helicopter. The latter won the contract on cost, much to the amazement of all concerned.
Didn't answer your question, but you get the drift.
And rotoboater, you may be pleasantly surprised to find that a part time pilot might be the answer. If they can save you the administrative hassle of a flight operation, you may be able to justify a part timer. e.g. a sub contract from a local flying school or a "retired" 58 year old who does not require the full social security millstone. And can your accountant put a value on the halo effect of arriving with your own pilot?
Tightgit
If you want a good corporate take on this, look here 
http://www.aviationnow.com/avnow/new...s/heli3034.xml
http://www.aviationnow.com/avnow/new...s/heli3034.xml
