Case A

No Depreciation, Factory rebuilt R-22, 9% loan with 10% down, no lost investment opportunity, no depreciation

DISCLAIMER: This a rough estimate as to the cost of operating an Exec162F and the R-22 and will vary with type of use, maintenance, local conditions, and Rotorway/Robinson prices. This information is for comparison only and may be incorrect. It's what I'm using for my personal planning until I get better data. Cost estimates marked by "*" are  approxmations. Cost estimates marked by a "1" include prices from Rotorway International. Items listed for replacement are from the Rotorway Maintenence Manual.

Notes/Assumptions:
1. Based on the below data you can see why FBO's typically charge around $150 - $190 per hour for R-22 rental and try to keep them flying continuously.
2. 100 hours/year for individual owner means you fly 2 hours every weekend - in 20 years of owning an airplane I've found this hard to do. Maybe you have more free time.
3. I have been unable to obtain any confirmed examples of Execs with more than 500 hours TTSN. Rotorway tells me they are many ships flying beyond 500 and 1000 hours.
4. The cost of money below only assumes the cost of a loan. It does not comprehend the lost investment opportunity of having the money tied up in a helicopter. This is not reality but seems to be the way most people do their planning. 
5. The maintenance estimates are very conservative since it's unlikely that nothing ever wears out prematurely. I'm told that R-22's are ocassionally known for needing transmission rebuilds prior to TBO - at $30k - $40k and frequently Lycomings need to have the top-end rebuilt prior to TBO.

ESTIMATED OPERATING COST  

Exec162F

R-22
Estimated price of helicopter (with Comm Radio and Transponder): $64,350 $115,000 (Factory Reman)
FIXED ANNUAL COSTS: 
  • Depreciation - Assume 0 for this case

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  • Cost of money - Assumes 9% interest loan (probably conservative) and 10% down
 $8,803.68 $15,733.08
  • Liability Insurance
$1,500 $1,500
  • Hull Insurance - You have to have this if you have a loan
 $5,500 $5,500
FIXED COST PER YEAR:  $15,803.68 $22,733.08
MAINTENENCE COSTS:
Annual Inspections - For the Exec it's assumed you do these yourself and the parts costs are included below. For the R-22 I base it on an A&P's estimate with no problems found (unlikely)  ------------ $1800 x 20 =
$36,000
Replacing Life-Limited Components 
  • 100 Hour - Drive chain, spark plugs, fuel filter, misc
 $6501 x 16 = $10,400

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  • 250 Hour - Cam gear, Idler pulley bearing, tail rotor belts/bearings, main rotor drive pin
 $3311 x 4 = $1324

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  • 500 Hour- Rebuild cylinder heads, tail rotor overhaul & blade assy, throttle cable, hoses, radiator cap, water pump/alt belt, secondary shaft lower bearing, main drive belt, misc bearings/belts, teeter block bearing, mainshaft bearing weldment.  (Includes 250hr kit, 100hr kit)
 $2,2441 x 2 = $4,488

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  • 1000 Hour - Complete engine overhaul, complete rotorhead overhaul, mainshaft R&R, tail rotor slider assy, misc. parts, exhaust header, engine pulley, main sprocket/hub, secondary pulley assy, upper bearing assy, secondary shaft, fuel pump, fuel press. reg., rotor hub plate
 $11,0001* x 1

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  • 1500 Hour - M/R blades (Includes 500 hour kit)
 $8,0001* x 1
  • 2000 Hour Overhaul - Majority of the Exec  needs to RCO'd so I'll assume you "retire" it at this point. I assume you sell the R-22 for residual value

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RESERVE PER HOUR: $17.60 $18.00
DIRECT OPERATING COST: 
  • Fuel @ $2.00 per gallon and 8.0 gph for average use 
 $16.00 $16.00
  • Oil
 $.60 $.60
  • Unscheduled Maintenance, Parts and Labor @ $40 per hour (factored out for now)
       ------------       ------------
DIRECT OPERATING COST PER HOUR: $16.60 $16.60
TOTAL OPERATING COST: 
  • Fixed Cost per Flight Hour Based on 100 Hours per Year
 $158.03 $227.34
  • Maintenence Reserve Per Hour 
 $ 17.60 $ 18.00
  • Direct Cost per Flight Hour 
 $ 16.60 $ 16.60
TOTAL OPERATING COST PER HOUR ASSUMING 100/yr: $192.24 $261.94
  • Fixed Cost per Flight Hour Based on 500 Hours per Year
 $31.60 $45.47
  • Overhaul Reserve Per Hour 
 $17.60 $18.00
  • Direct Cost per Flight Hour 
 $16.60 $16.60
  • TOTAL OPERATING COST PER HOUR ASSUMING 500/yr:
 $65.80 $80.06