dw747400
Posts: 1091
Joined: Wed Aug 15, 2001 8:24 am

Part 135 Questions

Wed Dec 22, 2004 5:39 am

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!

Thanks!

CFI--Certfied Freakin Idiot
 
pilotpip
Posts: 2820
Joined: Fri Sep 19, 2003 3:26 pm

RE: Part 135 Questions

Wed Dec 22, 2004 2:48 pm

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.
DMI
 
2H4
Posts: 7960
Joined: Tue Oct 19, 2004 11:11 pm

RE: Part 135 Questions

Wed Dec 22, 2004 3:13 pm

DW,

I googled the following...


"operating expenses" "part 135"

"part 135" analysis


...both WITH the quotes, and came up with some interesting hits. You might try some variations on that search.

Also check out http://www.aviationresearch.com/Products/samples.html. Perhaps you could write that company and see if they could donate an old report to you for educational purposes.

It's not much, but maybe that will help a bit. Best of luck!


2H4



P.S. - You might summarize your report/presentation with a favorite joke of mine: Q. How do you make a small fortune in the aviation industry? A. Start with a large one.  Smile
Intentionally Left Blank
 
dw747400
Posts: 1091
Joined: Wed Aug 15, 2001 8:24 am

RE: Part 135 Questions

Fri Dec 24, 2004 1:12 am

Thanks all for the help... I really appreciate the information.

I had run a websearch but the particualr syntax you suggested produced better results than some of my previous efforts!
CFI--Certfied Freakin Idiot

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