Costs of owning a helicopter?

[BJH]

Before getting my pilot license I'd like to know what are the typical annual costs for owning a R22 or a 300cb?

 

Is it reasonable for someone who makes $150-170k/year, with a reasonable debt load, to afford one of these helicopters? Possibly split the costs with others in a co-ownership.

[edspilot]

I am where you are with this question. However, i already have my fixed & rotorwing license. I just need hours. I'm finding out that it is very do-able but will be much easier with a partner.

 

Having said that, I'm also finding it hard to find a "good" partner that your schedules work well together. If you are at the same point in your training it can be hard to have enough hours for each.

 

Sorry, I'm not much help but, I'll follow your thread to seeany advice given.

 

Good Luck,

 

edspilot

 

Before getting my pilot license I'd like to know what are the typical annual costs for owning a R22 or a 300cb?

 

Is it reasonable for someone who makes $150-170k/year, with a reasonable debt load, to afford one of these helicopters? Possibly split the costs with others in a co-ownership.

[arotrhd]

Too many variables with your question; not a simple easy answer (new vs. used aircraft, hrs/yr useage, maintenance/overhaul/life limits, insurance, etc.). Shooting from the hip, I would think that if you are earning that much per year (good for you, wish we all could), it should be do-able for the R-22 or 300. Maybe time is of the essence for you, but if you can make it down to HeliExpo next year for the Operator Management course, this and many other important considerations/issues are discussed in depth. I attended in Anaheim '05 with Bill De Decker - awesome course and great network opportunities. Or, give Ron Bower a call to discuss 512-345-1292 or visit bowerhelicopter.com. Just my $.03.

 

-WATCH FOR THE WIRES-

[DAWg134]

Rather than taking on a partner, you may want to consider buying a helicopter and then placing it on leaseback at the FBO where you intend to train. It'll be far cheaper that way because you can defray a good portion of the fixed costs and still provide plenty of availability for personal use.

 

I currently have a 300CBi on leaseback. My monthly insurance is close to $2K, whether it is flown or not. The cost of a tiedown or hangar is fixed as well - I pay a mere $150 for a tiedown. I also have additonal property taxes to the county each year ($2K). Variable costs include maintenance, which ran $47 per tach hour last year, but is closer to $80 per hour so far this year (but the $4,800 annual is over an done with). This doesn't include allocation to reserves for overhaul, estimated by Schweizer to be $18 per hour. Fuel costs are close to $5 per gallon and consumption varies between 11 and 12 gallons per hour, depending upon how it is flown each month. If it's rented out for a minimum of 35 hours, I break even for the month. Some months are 50 - 70 hours while others are only 20. Most students and/or pilots wait until the last minute to schedule, so I can generally fly it whenever I want with only 2 - 3 days advance scheduling. The leaseback agreement says I have priority and can actually "bump" other pilots. but hey, why would I want to turn down a revenue flight?

 

That said, if you're making $150K+ annually, you could probably use a decent tax break. Incorporate (preferably as a Chapter S) and you can depreciate the helicopter over five years. Eventually I'll have to sell it and probably suffer the consequences then, but I'm still getting differing opinions as to whether the sales "profit" will be taxed at capital gain rates or as depreciation recapture at ordinary income rates. I'll worry about that tomorrow... or the next day. In the meantime, there are some additonal tax write-offs but they pale in comparison to the depreciation. If you're operating as a business, expect the city, state, and the feds to each come at you with different fees and taxes, but those are deductible as well.

 

Hope this helps.

[BJH]

Rather than taking on a partner, you may want to consider buying a helicopter and then placing it on leaseback at the FBO where you intend to train. It'll be far cheaper that way because you can defray a good portion of the fixed costs and still provide plenty of availability for personal use.

 

I currently have a 300CBi on leaseback. My monthly insurance is close to $2K, whether it is flown or not. The cost of a tiedown or hangar is fixed as well - I pay a mere $150 for a tiedown. I also have additonal property taxes to the county each year ($2K). Variable costs include maintenance, which ran $47 per tach hour last year, but is closer to $80 per hour so far this year (but the $4,800 annual is over an done with). This doesn't include allocation to reserves for overhaul, estimated by Schweizer to be $18 per hour. Fuel costs are close to $5 per gallon and consumption varies between 11 and 12 gallons per hour, depending upon how it is flown each month. If it's rented out for a minimum of 35 hours, I break even for the month. Some months are 50 - 70 hours while others are only 20. Most students and/or pilots wait until the last minute to schedule, so I can generally fly it whenever I want with only 2 - 3 days advance scheduling. The leaseback agreement says I have priority and can actually "bump" other pilots. but hey, why would I want to turn down a revenue flight?

 

That said, if you're making $150K+ annually, you could probably use a decent tax break. Incorporate (preferably as a Chapter S) and you can depreciate the helicopter over five years. Eventually I'll have to sell it and probably suffer the consequences then, but I'm still getting differing opinions as to whether the sales "profit" will be taxed at capital gain rates or as depreciation recapture at ordinary income rates. I'll worry about that tomorrow... or the next day. In the meantime, there are some additonal tax write-offs but they pale in comparison to the depreciation. If you're operating as a business, expect the city, state, and the feds to each come at you with different fees and taxes, but those are deductible as well.

 

Hope this helps.

 

Thanks. Very informative and helpful.

 

BJH

[arotrhd]

DAWg-

 

Good follow-up with general info to consider. For the heck of it, I think I'll print this (good initial topic question too BJH) and put it in my HOMC book and bring it up when I attend the advanced course at some point...makes for a good, 'potential' case study or at least a healthy review for course participants who are not exposed to this type of situation/aircraft.

 

-WATCH FOR THE WIRES-

[500E]

If you are just starting training it would be worth doing the sums to see if buying, maintenance \insurance + Instruction would be cheaper than buying the whole package from a flying school, & selling after getting licence, it would have been for me, I am not saying lease back or rent this will only increase the insurance\maintenance cost to a level that may not be sustainable.

The Main + is if only you fly the beast you know any abuse is down to you.

If you do buy a 300 Please get a real good 300 AP to go over it and its logs with a tooth comb it will be worth it.