Jump to content


VRGeneral468Helicopter AcademyUpperLimit2011General_468x60SandelVRGen468
Photo
- - - - -

Costs of owning a helicopter?


  • Please log in to reply
6 replies to this topic

#1 BJH

BJH

    Student Poster

  • VR Member
  • PipPip
  • 19 posts

Posted 24 October 2007 - 18:18

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.

#2 edspilot

edspilot

    VR Veteran Poster

  • VIP Member
  • PipPipPipPipPipPipPip
  • 241 posts
  • Gender:Male

Posted 24 October 2007 - 18:41

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.


__________________________
Commercial: ASE & Helicopter
ATP: AMEL
CFI: ASE & Helicopter
CFII: Airplane
North Central West Virginia

#3 arotrhd

arotrhd

    VR Veteran Poster

  • VIP Member
  • PipPipPipPipPipPipPip
  • 366 posts
  • Gender:Male
  • Location:UPPER ECHELON OF MEDIOCRITY, Danger close to the Western gateway of the IE - a short launch North of the Orange Curtain
  • Interests:Everyone Home Safely. Always.

Posted 24 October 2007 - 19:02

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-

Guinness (For Strength). Jameson (For Courage). Lex (For The Effort).
- Cap't Carrol 'Lex' LeFon, USN, 1960-2012


Fair seas and Headwinds over the deck, my Friend.

Commit to memory Checklist Items:

#1 ...Whiskey for my men, beer for my horses...
#2 No smoking 8 hours before the flight or drinking within 25 feet of the aircraft.
#3 If it can't be fixed with a hammer, it must be an electrical problem. Bend to fit, dent to match.
#4 I don't care about being right, as long as I prove you wrong.
#5 If you can't have a really good laugh, at least provide an entertaining cry.
#6 What the large print giveth, the fine print taketh away.
#7 Anyone who flies lower than me is a moron, anyone who flies higher is a maniac, any one who flies the same altitude is a threat.
#8 A boy makes his girl jealous of other women. A Gentleman makes other women jealous of a lady.
#9 The other vehicle is my crumple zone.
#10 One of the goals in my life is to be as good a person as my dog already thinks I am.
#11 America has a long history of dealing with those who stomp on rights. There’s the soap box, letter box, ballot box, jury box and the cartridge box for dealing with these sorts.
#12 Passion is what you do when it’s convenient, commitment is what you do when it is inconvenient.
#13 Never argue with an idiot; they bring you down to their level and beat you with their experience.

#14 It is customary caveman tradition to curse inanimate objects after making a mistake that causes injury to self.

#15 History doesn’t always repeat, but it usually rhymes. Tree. Politician. Rope. Some assembly required.

#16 Always plan for the mission as if you are the wetware that others are trying to liquidate somewhere between Destruction Bay and Explosionville.

#17 A goal to easily achieved is often a disappointment.

 

"I will not turn my clock back. I will be living one hour in the future. I greet you, The People of the Past. Your ways are quaint."

 

And sometimes, it just has to be said:

"I rode the short bus and I don't remember seeing you on my bus. But you should have been on it."


#4 DAWg134

DAWg134

    Student Poster

  • VR Member
  • PipPip
  • 19 posts
  • Gender:Male
  • Location:Southern California

Posted 25 October 2007 - 00:21

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.

#5 BJH

BJH

    Student Poster

  • VR Member
  • PipPip
  • 19 posts

Posted 26 October 2007 - 18:55

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

#6 arotrhd

arotrhd

    VR Veteran Poster

  • VIP Member
  • PipPipPipPipPipPipPip
  • 366 posts
  • Gender:Male
  • Location:UPPER ECHELON OF MEDIOCRITY, Danger close to the Western gateway of the IE - a short launch North of the Orange Curtain
  • Interests:Everyone Home Safely. Always.

Posted 27 October 2007 - 09:57

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-

Guinness (For Strength). Jameson (For Courage). Lex (For The Effort).
- Cap't Carrol 'Lex' LeFon, USN, 1960-2012


Fair seas and Headwinds over the deck, my Friend.

Commit to memory Checklist Items:

#1 ...Whiskey for my men, beer for my horses...
#2 No smoking 8 hours before the flight or drinking within 25 feet of the aircraft.
#3 If it can't be fixed with a hammer, it must be an electrical problem. Bend to fit, dent to match.
#4 I don't care about being right, as long as I prove you wrong.
#5 If you can't have a really good laugh, at least provide an entertaining cry.
#6 What the large print giveth, the fine print taketh away.
#7 Anyone who flies lower than me is a moron, anyone who flies higher is a maniac, any one who flies the same altitude is a threat.
#8 A boy makes his girl jealous of other women. A Gentleman makes other women jealous of a lady.
#9 The other vehicle is my crumple zone.
#10 One of the goals in my life is to be as good a person as my dog already thinks I am.
#11 America has a long history of dealing with those who stomp on rights. There’s the soap box, letter box, ballot box, jury box and the cartridge box for dealing with these sorts.
#12 Passion is what you do when it’s convenient, commitment is what you do when it is inconvenient.
#13 Never argue with an idiot; they bring you down to their level and beat you with their experience.

#14 It is customary caveman tradition to curse inanimate objects after making a mistake that causes injury to self.

#15 History doesn’t always repeat, but it usually rhymes. Tree. Politician. Rope. Some assembly required.

#16 Always plan for the mission as if you are the wetware that others are trying to liquidate somewhere between Destruction Bay and Explosionville.

#17 A goal to easily achieved is often a disappointment.

 

"I will not turn my clock back. I will be living one hour in the future. I greet you, The People of the Past. Your ways are quaint."

 

And sometimes, it just has to be said:

"I rode the short bus and I don't remember seeing you on my bus. But you should have been on it."


#7 500E

500E

    VR Veteran Poster

  • VIP Member
  • PipPipPipPipPipPipPip
  • 1,106 posts
  • Gender:Male
  • Company working for:Owner 50 years this year

Posted 27 October 2007 - 18:08

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. :ph34r:
Fly the dream fly 500




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users



OdysseyGeneral200PrecisionVRForumGeneral200HeliAviationVRGen200NFCVRGeneral200JR Aviation General 200ColoradoHeliOpsGeneral200MaunaLoaSoftwareVRGeneral200BristowGeneral200HeliHelmets