Rates In The Sewer

[Nomex]

Old news now, but last year, prior to all **** breaking loose with the fires, an operator positioned a 206L in the Kootenays to be on standby (IA) for BCFS without minimums (different than chasing fires and positioning a machine somewhere, along with other company's machines, and waiting for a call) - I understand the deal was the machine will be at the disposal of BCFS and committed to them for any trips and will sit and wait until they need it, no cost to BCFS until they turn a blade and no minimums. As I understood it, BCFS was seeking out a machine for IA and pay the usual 4 hr mins until this "can't refuse offer" came along.

Operator was from out of the area, and did not endear themselves to any of the local companies. Another example of marketing to capture the work, without concern for losing money or hurting the industry. Don't know what the tariff was, but likely would also have been a "good" deal.

 

Like 407D said, apparently the operator didn't disappear completely, but didn't do so good last summer - surprise! - and has had to "restructure".

[Nomex]

How could it hurt - published rates are not a secret, individual contracts and bids may come in less, but normally there is little give on these rates, maybe a max of $150-200 less for the 206 (depending on location and/or for a long-time customer).

 

I'll start....

 

wet incl tax

 

212 - $3,050

205 - $2,950

350B2- $1800

206 - $1,080

 

over to you..

[Frequent Flyer]

A quick question for you nomex. Are these the current rates of your company or are these the rates at where you think they should be.

[Nomex]

Sorry if I wasn't clear - those are the current rates.

[jetbox]

I don't think it's the posted rates that matter so much as it is the lowest you're willing to go down to to get the work. We all have standard rates but the numbers always change depending on how appealing a contract may be, no????

 

P.S. Our rates are right in line with Nomex's

[Nomex]

You're right Jetbox, any company can give a rate and then discount it to impress the customer, so standard tariffs really don't help solve the puzzle. As for our company, as I said, rarely do the rates drop very much and the majority are the listed tariff, with some discounted 50-100 $$ for regulars. There is no doubt, the higher rates are questioned occasionally, reasons are explained and they are free to visit the competition if they want to - usually they stay. Some business is lost due to maintaining higher tariffs, but that's life.

[jetbox]

It's too bad Nomex that all customers don't appreciate or don't care that good reliable and SAFE service has a price. What gets me is that the customers that think their so smart for getting the helicopter at a discount price are the same idiots that don't realize the hours being billed probably don't match what's in the log book and that at the end of the job, they ended up paying more anyways because they got shafted somewhere else!

How else can these discount operators explain how they make ends meet???

It's frustrating as he-- is all :down: :down:

[Blackmac]

Nomex and JetBox: It is very admirable of you guys to post your rates, when in actual fact they don't mean anything. You know and I know that you can change your rates as many times as you wish in any time frame.

 

I've posted on this subject before and until there is a minimum tariff for all helicopters, it won't change.

 

The operators spent their time cutting each others throat when it was regulated, so now it's de-regulated, welcome to reality.

 

I hope everybody (operators) had a great time at HAC and will let us poor peon's know what was accomplished in Brians little world, other than a booze up.

 

Have you ever thought an association with some balls might be able to get through to some of these people.

 

Just my thoughts, having been regulated and de-regulated.

 

Cheers, Don

[T-rex]

Thanks guys,

 

I will chat with our Operations today. Our 205 rate is not that high, I will try to have that changed. Maybe it is because we only operate a dash 13.

 

205A1-13 - $2500 hr.

B2 - $1700 hr.

BA - $1480 hr.

[bubbleboy]

I was just wondering what you guys think the rates should be in a perfect world?

 

A certain amount of profit has been factored in, but this profit margin seems to have the competitions rates in mind. Take a 206 for example. What should the ideal rate be? Within reason of course.

 

I had friends return from the US saying that a 206 was going for $1200 USD/hr. At a middle of the road exchange of say 1.4, that would be $1680 CD/hr!!!!!!!Can we compare rates like that or is there something I don't understand - no, seriously. Could a brave soul in the know give us a generic breakdown of the costs of running a 206 in a typical operation. If not, I understand, but it would probably be enlightening for some.

 

I looked into all the costs of running an R44 once, and it scared the sh!! out of me.

 

Help me out here guys, is my math suspect? Man, imagine what we could do with those kind of rates - if they are realistic. Maybe our rates should float daily along with the USD and educate our customers for this. Is that already happening?

 

Obviously I'm no economist. Just ask the war department in my house. Haven't made any money in 6 months yet I still want approval to buy a used Valk. All 1500 ccs. 98 lbs of Q!! :up: :up: