Leasing vs ownership

[Black Bear]

I'd like to hear from people with experience in both ownership and leasing. Information I am trying to obtain at this time, are the pros and cons of both, for example, cost comparison, any unfavorable terms of agreement in the leasing contracts, names of reputable companies who deal in Bell products, specifically the L3/4 and contact info of representatives you would recommend. I would also like to know what insurance companies to consider and the ones to avoid. I'm located in Colorado, and doing research for an individual who is considering starting a tour company with the possibility of expanding operations in the future. Any and all advice and info is appreciated. Thank you for your time.

[Goldy]

Using a L4 for a tour company means only one thing.....really expensive tours. If that's your market, great. If youre flying two couples at a time...4 guests...that helps, but most guests don't want to be split up in front and rear seats....and the view from the rear seat is horrible compared to the front. All the reasons why the r44 is so popular. As far as leasing or owning...the financial standards are similar...if you can qualify for a 2 million dollar loan then you can qualify for a lease. Lots of places to lease an r44....and lots of places to lease an s92......but leases in the middle ground are tough to find. Most want 3 or 4 million dollar deals as a minimum.....ie milestone leasing.

[helipilotm]

Using a L4 for a tour company means only one thing.....really expensive tours. If that's your market, great. If youre flying two couples at a time...4 guests...that helps, but most guests don't want to be split up in front and rear seats....and the view from the rear seat is horrible compared to the front. All the reasons why the r44 is so popular. As far as leasing or owning...the financial standards are similar...if you can qualify for a 2 million dollar loan then you can qualify for a lease. Lots of places to lease an r44....and lots of places to lease an s92......but leases in the middle ground are tough to find. Most want 3 or 4 million dollar deals as a minimum.....ie milestone leasing.

I have to disagree with you Goldy. First off in my mind a "tour" is minimum of 1/2 an hr. Expensive is in the eye of the beholder. It's all a matter of what there seeing and how knowledgeable the pilot giving the tour is. The views out of an L3/L4 are just as good as an R44, better with "tour" doors. 206's are way more comfortable in the back seat they're wider and have more leg room. Also I can count on one hand the times I've had couples complain about being split up. I've got about 1300hours of flying tours in EC130's and 1000 ish in 206's. If your doing up and downs 5-15 min rides I'd say R44 all the way. Like real estate it's all about location, location location. On the owning and leasing... I just get paid to fly all that is above my pay grade

[Black Bear]

Thank you both for for the information. Goldy, you pretty much nailed it. The primary client is a high end wedding venue which would like to include a 30- 45 minute tour with possible stops for photos between the ceremony and the party afterwards for the couple and the best man and maid of honor. The problem and therefore the the choice of aircraft, is the location. It is at 8000' along the front range here in Colorado, so Robinson is pretty much out of the question. The owner would also like to expand operations as the company grows to include Part 135 and 133 operations. Fortunately, our geographic location offers an abundance of opportunities with a specific niche. Goldy, during my research, I have come across arguments that make both leasing and owning sound like the better deal, which is why I am asking for for arguments for and against both, from sources other that brokers. It is hard to determine the reality of both options, as everyone has a product to move and a bottom line to satisfy. What is the trend that the industry is seeing these days for small operators? Goldy, I have followed you on here for a long time, and I respect your opinion. What would you do? Are there more viable options as far as aircraft choice and is, in your opinion, ownership the better way to go? I would like to start a dialogue with you if you would be so inclined, so perhaps this discussion, for now, would be best suited for PM. Hleipilotm, thanks for the comparison between the two aircraft. I have time in both the 44 and the 206, but not extensive and not from the back seat, so it is nice to hear the customers perspective of each. The R66 came to mind, but as of now, it seems that it is limited in it's application. Again, thank you for taking the time to comment.