Why are helicopters so expensive to charter?
Thread Starter
Joined: Oct 2007
Posts: 2,515
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From: A better place.
Why are helicopters so expensive to charter?
As a humble fixed wing PPL, wonder if any of you can answer a long pondered question?
A gas turbine light helicopter is on average at least 10 times as expensive to charter (wet hire) as a piston engined light single fixed wing.
Where does the bulk of the overhead fall?
I assume it's not wages!
It's definitely not fuel.
Have always assumed it's the cost of deferred maintenance and the expense of components like rotor blades, or deferred overhaul cost of the turbine itself?
Why aren't they cheaper?
And will macines like the R66 make any difference....?
A gas turbine light helicopter is on average at least 10 times as expensive to charter (wet hire) as a piston engined light single fixed wing.
Where does the bulk of the overhead fall?
I assume it's not wages!
It's definitely not fuel.
Have always assumed it's the cost of deferred maintenance and the expense of components like rotor blades, or deferred overhaul cost of the turbine itself?
Why aren't they cheaper?
And will macines like the R66 make any difference....?
Joined: Nov 2000
Posts: 4,331
Likes: 74
From: White Waltham, Prestwick & Calgary
Try also insurance and the outrageous charges for an AOC. You probably need about a third of the hourly cost for maintenance and replenishment (most people spend it). And you are comparing turbine with piston.
Last I heard, the average profit margin was anywhere between 5-10% for light charter. Not a lot, really.
Phil
Last I heard, the average profit margin was anywhere between 5-10% for light charter. Not a lot, really.
Phil
Joined: Apr 2007
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From: Center of the Universe
A gas turbine light helicopter is on average at least 10 times as expensive to charter (wet hire) as a piston engined light single fixed wing.
Joined: Oct 2003
Posts: 199
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From: england
why so expensive?
Phil is correct.
The capital cost of the helicopter is so much higher than the capital cost of an aeroplane.
Hence the standing overheads are proportionally and significantly higher.
Then the facts of low utilisation and high maintenance costs ensure that it has to be expensive to charter.
Also, the cruise speed in a 4/6 seat helicopter is (typically) MUCH slower than a 4 or 6 seater aeroplane, so the cost per mile is exponentially higher in a rotary.
And after all that, you've got the agents commission and the operators profit.
Usually the agent is the one that makes the money!
(and no, I'm not one.....)
Big Ls
The capital cost of the helicopter is so much higher than the capital cost of an aeroplane.
Hence the standing overheads are proportionally and significantly higher.
Then the facts of low utilisation and high maintenance costs ensure that it has to be expensive to charter.
Also, the cruise speed in a 4/6 seat helicopter is (typically) MUCH slower than a 4 or 6 seater aeroplane, so the cost per mile is exponentially higher in a rotary.
And after all that, you've got the agents commission and the operators profit.
Usually the agent is the one that makes the money!
(and no, I'm not one.....)
Big Ls
Joined: Mar 2008
Posts: 582
Likes: 1
From: Where I'm pointing...
What I do find interesting though, is the higher availability of aircraft and lower prices of light turbines in England and South Africa compared to the USA where they are made, and who don't have the currency fluctuations.
I can hire a 407 for half the price in SA for example compared to the US, and in England 206's are available probably 20% less (roughly based on my investigations) than the US. Similar experiences for other types..
My take on the situation is there are more privately held aircraft in England and South Africa, or aircraft in between contracts, and the additional utilization is a "bonus", so they can afford to offer them for lower rates.
The insurance requirements for pilot experience also tends to be more in line with what a SFH pilot would have, compared to the US, home of big insurance and law suits.
(SA would also have lower labour, hangarage, etc, though that does not explain England, nor the large difference in pricing).
I have also found you tend to be able to use the aircraft for longer periods abroad, than compared to here (e.g. take it away for a few days), making it much more practical than burning money in a circuit or local area flight where the aircraft has to be ferried back and forth when you are not using it (adding to the flight hours billed).
I can hire a 407 for half the price in SA for example compared to the US, and in England 206's are available probably 20% less (roughly based on my investigations) than the US. Similar experiences for other types..
My take on the situation is there are more privately held aircraft in England and South Africa, or aircraft in between contracts, and the additional utilization is a "bonus", so they can afford to offer them for lower rates.
The insurance requirements for pilot experience also tends to be more in line with what a SFH pilot would have, compared to the US, home of big insurance and law suits.
(SA would also have lower labour, hangarage, etc, though that does not explain England, nor the large difference in pricing).
I have also found you tend to be able to use the aircraft for longer periods abroad, than compared to here (e.g. take it away for a few days), making it much more practical than burning money in a circuit or local area flight where the aircraft has to be ferried back and forth when you are not using it (adding to the flight hours billed).
Hovering AND talking
Joined: Feb 2003
Posts: 5,711
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From: Propping up bars in the Lands of D H Lawrence and Bishop Bonner
and in England 206's are available probably 20% less
Possibly any UK prices you saw were quoted before sales tax at 17.5% for a start and then there's landing fees ....My experience last year was that a Jet Ranger cost me £445 an hour in the States compared with £635 at my local school.
Not a mega-saving admittedly but still ... it'd be rude not to.
Cheers
Whirls
Joined: Apr 2007
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From: Center of the Universe
The capital cost of the helicopter is so much higher than the capital cost of an aeroplane.
New C172SP about $305,000 (U.S.)
New R44 about $425,000
Yes, more for the helicopter, but not "so much higher."
Also, the cruise speed in a 4/6 seat helicopter is (typically) MUCH slower than a 4 or 6 seater aeroplane,
C172SP about 126 kts
R44 about 117 kts
Hovering AND talking
Joined: Feb 2003
Posts: 5,711
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From: Propping up bars in the Lands of D H Lawrence and Bishop Bonner
Ouch Birddog, you don't think they can see you coming? 
August last year, $1,190 for 1 hour 45 minutes in Washington State. Plus a lovely instructor ....
Cheers
Whirls
August last year, $1,190 for 1 hour 45 minutes in Washington State. Plus a lovely instructor ....Cheers
Whirls
Joined: Feb 2005
Posts: 1,957
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From: Australia
A
?
Well, them wing thaings on them aeroplanes don't turn round.
there y'go?
gas turbine light helicopter is on average at least 10 times as expensive to charter (wet hire) as a piston engined light single fixed wing.
Well, them wing thaings on them aeroplanes don't turn round.
Plus a lovely instructor
Joined: Feb 2008
Posts: 392
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From: UK
Helicopters are expensive, but there again their abilities are unique.
They cost more to build and maintain, but once you have savoured the flexibility and thrill of helicopter travel, they are worth it. Best to compare helicopter costs with small business aircraft, not light singles.
I own helicopters, so well aware of the costs, but have also chartered them and find big differences in what people charge. And, some companies that offer charter, prefer to make their money elsewhere and charge accordingly.
They cost more to build and maintain, but once you have savoured the flexibility and thrill of helicopter travel, they are worth it. Best to compare helicopter costs with small business aircraft, not light singles.
I own helicopters, so well aware of the costs, but have also chartered them and find big differences in what people charge. And, some companies that offer charter, prefer to make their money elsewhere and charge accordingly.
Joined: Feb 2008
Posts: 341
Likes: 3
From: New York City
I recently got a quote from a Japanese operator charging about $3,500USD/hr (inc pilot) for an AS355 charter, for aerial photography. Unreal...that's close to double what some US operators charge. For that hourly rate, you can almost charter a Dauphin in the US.
Joined: Jan 2005
Posts: 1,529
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From: yorkshire uk
i think some people are getting confused here !! There is a great difference between what a helicopter costs on say SFH and what it would cost to charter . Yes i could get a 206 for around £400 an hour wet but by the time it comes out of an aoc company they will be losing money at £500 an hour WITHOUT pilot . If you lease an aircraft from me it will be significantly cheaper than if it goes out as a charter ..this is due to the nonsense made up by the CAA to try to justify their existence ( and after all of that you will find that the flight cannot happen due to the lawn not being the size of a football pitch so not suitable for a single ...) As an example an Enstrom 480 Turbine will cost around £300 per hr wet to the owner , (maybe £350 sfh ) which i think is good value against any turbine fixed wing !!!
In my experience the USA has always been cheaper than the UK .
In my experience the USA has always been cheaper than the UK .