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for propeller, rotor or engine Times
Between Overhaul (TBO), the Mean
Times Between Failures (MTBF) on
avionics equipment, amongst other
things. Certainly, buy from a
company that can provide support,
particularly an engineering-based
Setting Up A Company 295
one, and have an independent survey
by a competent engineer.
Aircraft Valuation
Actually, when it was built is largely
irrelevant; what counts is the time
remaining on its components, since
they must all be inspected and
replaced at specified times. Equally
important is documentation
supporting it—it can take longer to
verify paperwork than physically
survey the aircraft. In this respect, be
especially careful when buying from
the USA. There are many apparently
"cheap" aircraft available, mostly
confiscated from smugglers or drug
dealers—with no acceptable
documentation, their only value is
scrap. Also, the regulations for
privately owned or agricultural
aircraft are less stringent than in
Europe, and you may need
expensive engineering and/or major
components replaced before they
will get a C of A. So:
There is no such thing as a cheap
aircraft.
Especially, there is no such thing
as a cheap helicopter.
Which applies to maintenance as
well; if you save money one year,
expect to spend it the next.
Remember that as well as shipping
charges, you may have local taxes
and costs of dismantling, packing
and erecting when you get it to
wherever you are. Shipping is
normally All Charges Forward and you
will cover insurance.
Depreciation
Because inspection, overhaul and
replacement can ensure that a 10
year old aircraft can be as efficient as
a new machine, you can't apply this
in the same way as a car, or other
industrial machinery. However,
accountants like it, and it's useful for
calculating operating costs, so take
the purchase price and give it a onethird
residual value, then write down
the difference over 10 years. Market
prices, though, may vary this. If you
have a new engine, or something
equally expensive, the machine’s
value could exceed the new cost.
Direct Operating Costs
All manufacturers publish estimates
of the cost of operating their
machines, in amounts per flying
hour, which naturally bear very little
relation to reality.
· Fuel & Oil. The shorter the
average sector length, the higher
the average fuel consumption.
Fuel flow for budgetary purposes
tends to be within 5% of max
cruise fuel flow for fixed wing
aircraft and 10% for helicopters.
For oil, only bother with
consumption; scheduled oil
changes come under
maintenance.
· Scheduled Maintenance (normal
inspection cycles, divided by the
hours between them). This is
sometimes the second largest
direct operating cost after fuel
and varies with the flying. Much
depends on the cycles incurred
by an airframe or engine rather
than the hours flown. Wear and
tear is felt primarily on takeoffs
and landings, when engines run
at high power settings and
landing-gear and flaps are cycled.
Some jet engines (particularly
helicopter ones) are therefore
restricted to the number of start
296 Operational Flying
cycles in addition to flying hours,
because of the enormous spread
of temperatures incurred in the
start sequence. Thus, if your
aircraft does relatively short trips
your maintenance costs per hour
will increase as a result. Whether
maintenance is major or minor
usually depends on the cost of
the item, and the cut-off point is
usually left to Company
discretion. For avionics, 4% of
retail price should reserved for
maintenance (assuming 400
hours per year). Add ½% for
every 200 additional hours flown,
or subtract if need be.
· Unscheduled Maintenance, like snags
and defects, special inspections
required by manufactures and
authorities.
· Aircraft Overhaul—removing,
overhauling, and replacing
components at proper intervals,
divided by the interval hours.
· Engine Overhaul—as above.
· Lifed Items—replacing when time
expired, divided by Life Hours.
· Engine Lifed Items—as above.
· Labour Rates.
· Fuel costs.
Fixed Costs
These cost the same per year
regardless of the work, so the more
you do, the less per hour they
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