What Happened To Heli-Inter Thread?

[just looking]

Apparently not at Heli-Inter. Or are other commercial operators able to operate an AS350 BA+ At $748.00 per hour and still have some $$$ left over?

 

I can't see how...even if you don't have bank payments, the direct and indirect operating costs associated with commercially operating this aircraft are more.

 

I think the thread got slightly sidetracked. Then you brought it full circle BT.

I believe the guys out of the east business philosophy is different then ours in the west. I believe they are just coving their cost. The only cost they want for the asset is the depreciated cost when you go to sell it. Over the past years the asset's have not been losing their value. So all they need to cover is their overheads as in employees parts and insurance. Its a sick business philosophy but i have seen people do it in the past. I really can't figure out how they make it work. Maybe i am just greedy.

[borntofly]

There is an operator who is next to inter-excel in Sept-Iles lower than the rates you post Freewheel and for a B2 and no positionning fees as well.

I think just looking was right...so dont bash about inter or another one....its the way it goes now in east.

[Freewheel]

There is an operator who is next to inter-excel in Sept-Iles lower than the rates you post Freewheel and for a B2 and no positionning fees as well.

I think just looking was right...so dont bash about inter or another one....its the way it goes now in east.

I'm not bashing Inter. I simply posted their rates (which are public knowledge). If they are so confident they are able to operate lower than anyone else, and they can defend their practices, they (and you) shouldn't be so sensitive.

 

I've heard the scenario that JL posted before, but I'm not buying it. I think he also missed quite a few other operating costs that should be included. Like marketing (as Blue Thunder so eloquently pointed out). How about lawyer fees for getting vertical forums removed lol? Maybe someone should post an independent 3rd party experts opinion..like Conklin and Dedeccer.

 

Even taking into account JLs point of view I don't think anyone can sustainably operate safely at those rates. That's not directed at Inter, but ANY company who operates below operating cost (in any industry).

 

I stand behind my point of view, that if I was a client I would seriously have to consider whether I wanted to put my people on an AS350 helicopter that is going for that cheap. (no matter who the company was).

 

I also think that government agencies should consider taking the 2nd lowest bidder. It would completely eliminate the ability of any operator to simply low ball to guarantee themselves a contract. It would force them to actually figure out the true operating cost, because if they came in too low they wouldn't get said contract. Yet the client could be confident they were getting a good deal with an operator who isn't cutting corners. It would also benefit the economy as a whole and ensure the pilot gets the $500 per day he expects (and deserves)

 

Don't worry, being that I am in the East I'm fully aware of what is going on in Quebec. Don't lump all Eastetn operators in with those operators though.

 

If the rumours turn out to be true, maybe it'll soon be happening in the west, also.

 

Bon soir, mon ami.

[Freewheel]

Actually, if there is any truth to the rumours I heard: many operators in the east will doing cartwheels to the bank. I've been receiving inter's rates since they started in the industry; while many others are very low now, I think some may start raise rates if Inter wasn't in their back yard anymore.

 

I guess I would call them an "Industry leader" in that respect. Congratulations.

 

What really surprises me is how eager they are to leave all that money on the table....

[vortex]

The $748.00/hr was a better idea before the Canadian dollar arrived at $0.70. Buying parts will probably be getting really painful now.

[Freewheel]

The $748.00/hr was a better idea before the Canadian dollar arrived at $0.70. Buying parts will probably be getting really painful now.

You'd think but they only issued the contract January 12; pretty sure the exchange rate was similar at the time.

At today's exchange that rate comes in at a whopping $523.00 USD/hr with no positioning charges.

[R0T0R]

Have you checked the rates in the US??? I think you will find them to be exceptionally low...

[bluethunder]

Wow, I just got to say, 748 per hour for an Astar, here's my take, and keep in mind I would only base it on maybe 150 hours/year on a 407.

 

180 litres an hour, say a buck a litre,

 

Insurance is about 25K per year, so maybe 170 bucks an hour there.

 

I store it in my shop, and I don't pay myself anything to fly it (I sleep with the boss who is also my wife)

 

A cheap annual might be 10-20K. This year it's a 5 year, a few replacement parts so 100K

 

There is not a hope in **** that someone can put an Astar out there for that kind of money and actually pay staff and over-head . That is crazy. Even if it is debt free........sure play with depreciation but you are fooling yourself.

 

If I didn't have another division to compliment this gig, I'd be lost, but I could never run even the construction business in such a careless manner. Just my 2 cents! Even flying for a charitable cause, I throw the value at about 1500/hour........am I out to lunch here?

[DGP]

I will throw what I have heard into the mix,now this could be all bullssss! I have heard that some operators are not insuring the hulls of the ships.They are taking the chance on 2-3 maybe 4 complete loss of ship but not paying what I have heard is twice as much as you have said BlueT for 1 year for complete coverage on the ship.That would put another $300/hr on your operating cost.This is what I have heard.If you drop 30 or 40 thousand per ship per year times whatever they are running for equipment that would probably pay for the loss of a machine.Also some folks have deep pockets.

[mmck]

I will throw what I have heard into the mix,now this could be all bullssss! I have heard that some operators are not insuring the hulls of the ships.They are taking the chance on 2-3 maybe 4 complete loss of ship but not paying what I have heard is twice as much as you have said BlueT for 1 year for complete coverage on the ship.That would put another $300/hr on your operating cost.This is what I have heard.If you drop 30 or 40 thousand per ship per year times whatever they are running for equipment that would probably pay for the loss of a machine.Also some folks have deep pockets.

 

They can only do that if the ships are paid for. If they have loans out on the aircraft the banks won't let drop the insurance without collateral. If everything is paid for there doing good and maybe they can afford to take the chance.