Industry Health Poll

[Skidz]

We have a French AME here doing his CPL(H). Rates in the EC are somewhat higher than here, and are charged by the minute, not by the hour. An AS350B3 goes for about 30 Euros a minute (that's 1800 Euros/hour). What makes the difference between their industry and our's ? Well, for starters, regulations are much stricter and enforced. A driver, wrench, or manager goes to jail if they cook the books or otherwise mess with the regs. Also, operating costs are also considerably higher (fuel, insurance, labour, rent, etc.).

 

As to the comment made about the current operators and that things might get better when they leave; I'm pretty sure the older guys out there are probably just as honest if not more so than some of the up-and-comers. It all comes down to what the industry as a whole can get away with.

 

Have a look at the trucking or shipping industries. What goes on there is very similar to what goes on in the GA industry.

 

One of these days, something real bad will happen that will attract a lot of attention to this industry with the general population (like say a helicopter crashing in a school yard full of kids or something fer instance). Unfortunately, in any industry, the absence of meaningful enforcement of the rules invariably leads to people pushing the envelope until some catastrophy happens that leads to regulatory intervention... :down:

[Cole]

Im only speaking from what Ive seen,

 

Bell 206 Jet Ranger (Turbine) - $900.00 per hour

- Chinook Helicopters, but I guess this would include an instructor

 

then plus tax, so I just kinda guessed, I wasnt 100% sure, so what is the going rate for a jetranger?

 

Cole

[Ryan]

unfortunately, there isn't many 206's that can grab a $1000/hr

 

Yeah, only the ones that are air worthy and flying.

 

I thought that was a normal rate for the 206. It was last year when I did my 206 training. Unless you're talking just the machine... not including the pilot or fuel?

[Firehawk]

You will find the training schools are charging closer to what the rate should be in the industry, where if it is charter company competing for the work with other companies those rates will be lower then what a school is.

[Ryan]

That makes sense.

Was thinking about what we charge at Helijet to charter a 206. I might be wrong but I'm sure it's around $1200/hour. That's pretty high, but I guess with the schedule service and ambulances as the bread winners they can afford to jack up the 206 rates and not worry too much about lost business because of it. And some clients are willing to pay that rate, so whatever works I guess.

[Skidz]

Ryan,

 

Helicopter charter rates are like sticker prices on cars. They are always negociable.

[PerfectTrack]

Ryan, when I hear Helijet, it means corporate to me. I can see why they can get those rates if thats the type of clientelle they fly around. Niagara Helicopters is a prime example of huge money making. Do the math and see how much revenue per hour is brought in by each aircraft. They have a niche market, (much like corporate helicopters are right now) and they are supported by a severe lack of competition. You don't get those luxuries in the charter end of this industry.

Once you get out into the real world of helicopters away from training and corporate (take cole with you by the way), you'll see that cutthroat rates are more plentiful and the costs drops accordingly. When you get every little chicken s**t town being home to three or four heli companies all competeing for the 1000 or so hours sustainable in that area, you'll see the reason why the rates fall so low.

I'd personally love to see a higher tarriff rate, but I doubt it would go to where it's needed.

Imagine though, (and maybe some pilots could quiz customers on where their line is) when the cost of heli's becomes too high, how much of you guys will be out of work. I can easily see alot of customers scaling back their flying or cutting the flying out completely because its too costly.

[Ryan]

You're totally correct, it's pretty much all corporate with us. I'd take a guess that at least 80% of our pax are either gov't workers or other "professionals" doing day trips back and forth on business. If these folks can afford to privately charter ETA's '61 for a day then our 206 is a cake-walk.

 

So what are the rates for light machines out where the real action is? You went and burst my bubble guys... that's a real downer that rates are often lower than $1000/hour away from training and corporate work. What's the average cost per hour for light gear on a typical contract?

[transientorque2]

I guess that when you talk about $1000 / hr is when the dust settles. You start with the dry rate 850.00 / hr , add in the fuel, GST, landing fee I think it would be close to 1000.

 

Oh and by the way the rates in europe are maybe higher but one did say that everything else under the sun is higher too. Did any of you guys check to see what insurance rates are these days are for a 206. Its calculated as to your experience level accident record, a/c value etc. If any of you would see this bill you'd have a heart attack. Try $50,000.00 plus for the year and you haven't even turned a blade yet.

[buzzard]

Last year I heard a rate of $575.00/hr for a jetranger doing heli log support on Vancouver Island, flying about 2 Hrs. a day. The poor low timer pilot was getting $50.00/hr. and no daily. Totally shamless on the part of the operator. I think the 499.00 special still exists with this company. This keep of activity hurts everybody in the industry.