Dw747400 From United States of America, joined Aug 2001, 1271 posts, RR: 1 Posted (10 years 6 months 2 weeks 3 days 19 hours ago) and read 2439 times:
I’m doing some research on what’s involved in running a small Part 135 operator, with regard to expenses, operational structure, certification, etc… I have a class coming up next semester that requires us to develop a business model for a new business, and I figured I might as well work on something I’m interested in.
I’ve done some research on the topic, but it seems everything you learn adds several new questions. I’m looking at operations with light jets, like the CJ1 or Premier.
Generally, if anyone has rough estimates of the costs, both variable, fixed, and acquisition of aircraft in this size category, I’d appreciate it!
I’m especially interested in insurance, maintenance, financing, and anything else that those of you with more experience in the matter
Also, what are the typical salaries/benefits like for charter pilots, flight dispatchers, maintenance crews, administrative staff, and any other personnel needed for operation.
Also, how much does it cost to earn a type rating in a light jet, and then to maintain the necessary recurrent training?
What are typical taxes on Part 135 carriers? Are they normally set up as partnerships, limited partnerships, corporations, etc?
If there is anything else you can think of, or have suggestions of resources that might be useful (especially FREE resources!), please pass that information along!
Pilotpip From United States of America, joined Sep 2003, 3152 posts, RR: 10
Reply 1, posted (10 years 6 months 2 weeks 3 days 10 hours ago) and read 2255 times:
For the regulated stuff, such as required staff and certification I'd pick up a copy of the FARs.
As far as salaries for pilots, they vary greatly. The lower end is pretty comparable to a 121 carrier like a regional airline. I've seen entry positions ranging from about $20-35k per year. I can't tell you much about the other requirements for staff wages. A site like http://www.climbto350.com might give you a better idea as far as wages are concerned.
Items like insurance also vary greatly. Most 135 operations do find it less expensive to pay an F/O versus flying the aircraft single pilot, which both jets you mentioned are certified to do. Check the archives of AOPA and some of the flying magazines as they often have articles on single pilot ops. For the hourly operating costs, look up some aircraft charter companies and the websites for both aircraft mentioned. You may find direct operating costs online or find a contact that can help you out. Again, aviation magazines are a good source of operating costs as they are targeted at the potential owner.
There are so many of these 135 operations out there that it is very hard to compare one to another in many cases. I deal with everything from corporations with a fleet of aircraft to sole propriotorships that only have one or two Barons. I would imagine that most are incorporated regardless of size so that the owners have limited liability to avoid loosing everything they have in the event of something bad happening.