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HELICOPTER AIR SERVICE PROGRAM 445
Similarly, it does not appear unreasonable to use present speeds for projection purposes. Present speeds offer sufficient time advantages over surface means so that higher speeds are not critically needed for competitive purpose. Higher speeds, through engine modifications or new aircraft, could produce lower seat mile costs so that we may be overstating potential unit costs by assuming speeds of present aircraft.
Without attempting to estimate future purchases of aircraft by specific type, we assume a twin-turbine aircraft having an average available capacity of 26 seats. We also assume that it would be operated at an average block speed of 110 miles per hour on a 20 mile-stage length and 103 on a 15-mile hop. Average aircraft speed is a function of the characteristics of a carrier's system as reflected in the average length of aircraft hop. There will be variations from these assumptions by carrier.
It is not the purpose of this study to project individually the economic position of any one of the present carriers or of any new ones which may come into existence to serve new areas. Rather, it is meant to reflect cost conditions which must be faced, in a composite way, by the helicopter carrier industry as a whole. Accordingly, we have set up a range of assumptions as to block-to-block speed, length of aircraft hop, utilization and load factor to show breakeven requirements. The characeristics of the present subsidized carriers were shown previously in the chapter by are repeated here for purposes of comparison with our assumptions.
CHA | LAA | NYA |
Block speed (mph) | 88.9 | 105.4\1 | 107.4\1|
Length of hop (miles)| 14.5 | 17.7 | 13.0 |
Passenger load factor|
1959 | 50.7%| 56.5% | 48.8% |
1960 | 48.1 | 55.7 | 53.0 |
1961 | 41.5 | 54.7 | 53.7 |
1962 | 35.4 | 39.6 | 44.8 |
1963 (Fiscal) | 36.1 | 42.8 | 43.2 |
Utilization\2
1959 | 3:27 | 3:41 | 3:23 |
1960 | 3:22 | 3:29 | 4:13 |
1961 | 3:29 | 4:26 | 4:05 |
1962 | 2:38 | 2:40 | 3:02 |
1963 (Fiscal) | 2:30 | 2:46 | 2:70 |
\1 Turbine only, 12 months ended December 1962.
\2 Average revenue hours of use per day per aircraft.
Direct operating expenses per hour and per available seat mile are shown in Table III-38 for utilization levels ranging from 1,100 per year to 2,400 and for aircraft hops of 10, 15 and 20 miles. The basis of the hourly aircraft operating expense is as follows: Crew costs including salary and benefits for a pilot, copilot and attendant were assumed to be $45.00 per airborne, or block, hour at the present aircraft utilization level of 1,100 block hours. Fuel costs were assumed to be $21.00 per hour. Insurance costs were computed for hull and liability components using a aircraft cost new of $685,000 with hull at 6 per cent of total and liability at $150 per seat per year. At 1,100 hours utilization this is $41,00 per airborne hour. Residual flying operations costs were computed at 7.6 per cent of all other flying operations expense, amounting to $20 per hour. Direct maintenance costs of $120 per airborne hour were assumed. Depreciation was computed in conformance with the ATA formula and amounted to $66 at 1,100 hours utilization.
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