Helicopter charter company?

[Peter PanPan]

Helicopter Air Taxi & Charter Ops

First of all thank you Moderators for moving my thread to this older one, I promiss I did a few searches but somehow still missed the original one.
Secondly thank you for the few answers already, seems like we have a lot of bitterness accumulated against the UK CAA, I know the beast too and wouldn't ever start such business in the UK. It would be somewhere far away from EASA land on the southern hemisphere, sorry about being vague but the location doesn't really matter for the purpose of this discussion since I really want to hear what everyone has to say: US, Canada, Australia, New Zealand, EASA land...

Chopjock thanks for the flying club suggestion, to be analysed
Thanks The Controller for the links

Could someone name some of the best options in terms of aircraft for this kind of operation? (It would be interesting to hear pros and cons in terms of maintenance as well)

[The Night Owl]

Go to the bank, withdraw £100k, chuck it on the BBQ and see how you feel watching it going up in smoke and then think how willing you would be to do the same again next year.

If it feels good go for it!

[Peter PanPan]

Anything more constructive than the previous post?
Great comment Night Owl

[John Eacott]

Originally Posted by PeterPanPan

thank you for the few answers already, seems like we have a lot of bitterness accumulated against the UK CAA, I know the beast too and wouldn't ever start such business in the UK. It would be somewhere far away from EASA land on the southern hemisphere, sorry about being vague but the location doesn't really matter for the purpose of this discussion since I really want to hear what everyone has to say: US, Canada, Australia, New Zealand, EASA land...

PPP,

Australia doesn't (yet) have the restrictive practices of the CAA, but you really, really need to have a business plan before you commit to investing in any business. Buying a helicopter and waiting for the punters to walk in the door will see you broke in a month: it just doesn't work that way.

Some assured income stream is essential, even if it consists of joyflights every weekend at Country Shows around the state: cash income is a Good Thing Better to have a contract up front, and then obtain the right machine to serve that contract: hawking the wrong helicopter for the job will both annoy the client, and drive you to distraction in a very short period of time. Never, never try to force the client into a helicopter because it suits you; it has to suit him as well.

Back to the business plan. Get all your costs sorted beforehand, and include absolutely everything that will cost you without any skimping. All DoC's and FoC's have to be budgeted regardless, otherwise your bottom line will soon go south. Just as important is marketing, Yellow Pages and internet presence is essential before the helicopter casts a shadow on the tarmac. Above all, don't confuse cash flow with profit: your charter rate must be enough to give a profit on top of paying the bills!

If you are seriously considering operating in another country to that in which you currently live and work then you'll be up against a host of qualifying issues. CASA require about 6 months to process an AOC application, including a Business Plan and numerous financial assurances, and a Chief Pilot for the AOC. Chief Pilot criteria are also quite onerous: for a new chum to arrive and get licensed and approved as a CP may be a big ask.

There have been many operators here who started small (I only had one B206 to start with) and moved on: a few friends back in UK have done much the same. Aeromega and Castle Air were both started by ex RN mates who also had a single B206 initially, and seem to have done well, so gloom and doom merchants aren't always right

Whatever happens: good luck

[Tallguy]

John

Aeromega closed the doors on the AOC some 18 months ago now I think, and whilst the flying school is still going that also has been scaled back, Castle Air on the other hand still seem to be doing very well but have heavily diversified into sales/maintenance and as we all know specialise in aerial filming so aren't souly reliant on charter. So whilst I agree we shouldn't all be doom and gloom in these particularly tough times it takes a brave man and certainly softly softly is the approach.

[John Eacott]

Tallguy,

Understood: maybe I should have made the point that Keith at Castle and Kit at Aeromega before he sold, seem to have done well!

And I sold three years ago, so I wouldn't expect my old company currently to reflect on me, but the point was about personal rather than company achievements

[Peter PanPan]

John Eacott,

Thank you for sharing with us both your personal experience as a small operator and your views, definitely refreshing after the gloom and doom vibe that arised over this thread.

I must say that I got slightely confused though when you write that obtaining a contract up front prior to acquiring an aircraft is key, along with the marketing before the helos arrive. How can you possibly seriously advertise your company when the hangar is empty?

Thank you also for the realistic time frames required by the CASA in order to process the paperwork.

Again thanks for your positive attitude

[Tallguy]

Ahhhh John I'm right with you now

[John Eacott]

I must say that I got slightely confused though when you write that obtaining a contract up front prior to acquiring an aircraft is key, along with the marketing before the helos arrive. How can you possibly seriously advertise your company when the hangar is empty?

My intention was to stress that it is important (essential?) to have work lined up before you purchase a machine, even (as mentioned) if it is only joyflights at Country Shows. A contract for an aircraft would be the ideal, but whatever it is, make sure you have a cash flow lined up before you start.

As a comparison, would you set up a coffee shop without first checking that a market exists at that location? Similar scenario: an assurance of income is essential to any new business. Along the same lines, marketing the new coffee shop prior to opening gives a better chance of getting clients than sitting behind the counter, hoping....!

Marketing means making sure Yellow Pages advert is booked before the yearly closing date, getting online coverage with Google hits, mail out to prospective clients, etc etc. If you have been operating as a pilot, use the contacts that you have built up over the years to bring some work into your company. You can only sell what you have, so choose the helicopter to suit your planned market; an R44 would better suit joyflights than a turbine (eg B206) but a 206/EC120 would better suit general charter, photography, filming etc. Costs and charter rate would reflect the income and expenses commensurate with the helicopter type and operation.

[topendtorque]

Australia doesn't (yet) have the restrictive practices of the CAA

no, but they are trying, via trying to implement CASA 'policy' with each individuals interpretation, rather than CASA 'legislation' is one favourite trick.

another federal trick (1) that we have seen lately is that they wish to be silent partners, (I.e. the mining industry) and share in the profits without committing to start up and running costs.

as far as charter in the joy flight game, this trick is already well worn by certain sections of the commuty.

To end up with a small fortune, start with a big one and follow me;

Pick a venue that has something worth while selling as a joyflight venue, say it has 250,000 patrons per year, budget on 2.5% of its patronage as joyflight clients, your loading will be 2.1 passengers per flight, (these are real figues) things go well your are making a quid.

but no there's more.

all of a sudden the venue is now granted ownership of by a non investor group who all of a sudden want to do the trick (1) as above and do so by upping a high % surcharge to your gross return without any consideration of any of your costs.

to then end up with a small fortune;

sell quick with your good figures to the next sucker that comes along.

end of story.
cheers tet