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448 HELICOPTER AIR SERVICE PROGRAM

Table III-40

PROTECTED TOTAL OPERATING COSTS AND CORRESPONDING PASSENGER REVENUE REQUIREMENTS TO BREAKEVEN AND ACHIVE A 90 PER CENT OPERATING RATIO

[[Four Column Chart]]

                                                     Revenue Hours Per Year
                                                     1100  |  1400   |  2000
Direct operating expense per hour^1              | $313.00 | $290.10 | $264.90
Available seat miles per hour                    |   2,665 |   2,665 |   2,665
Direct operating expense per available seat mile |  11.74¢ |  10.89¢ |   9.94¢

(1) Breakeven requirements^2
(a) Indirect expenses equal 100% of direct
40% load factor | 55.44 | 51.14 | 46.41
45 | " | " | 49.23 | 45.42 | 41.22
50 | " | " | 44.33 | 40.89 | 37.11
55 | " | " | 40.37 | 37.24 | 33.79
60 | " | " | 37.06 | 34.18 | 31.02
(b) Indirect expenses equal 75% of direct
40% load factor | 48.10 | 44.34 | 40.20
45 | " | " | 42.72 | 39.38 | 35.70
50 | " | " | 38.46 | 35.45 | 32.15
55 | " | " | 35.02 | 32.29 | 29.27
60 | " | " | 32.15 | 29.64 | 26.87
(2) Requirements with operating ratio of 90%^1
(a) Indirect expenses equal 100% of direct
40% load factor | 61.96 | 57.19 | 51.94
45 | " | " | 55.03 | 50.79 | 46.12
50 | " | " | 49.55 | 45.73 | 41.53
55 | " | " | 45.11 | 41.64 | 37.82
60 | " | " | 41.42 | 38.23 | 34.72
(b) Indirect expenses equal 75% of direct
40% load factor | 53.81 | 49.63 | 45.03
45 | " | " | 47.79 | 44.07 | 39.99
50 | " | " | 43.03 | 39.68 | 36.01
55 | " | " | 39.18 | 36.14 | 32.79
60 | " | " | 35.97 | 22.17 | 30.10
1 At 15-mile stage length.
2 Adjusted for non passenger revenues of $35.00 per hour.
  These passenger revenue yield requirements demonstrate the progress which must be made for the helicopter carriers to become self-ufficient. At present their costs are far above these requirements and their average revenue yield is below the requirements for any reasonable level of utilization and load factor. 
  However, the breakeven requirement data show the economic self-sufficiency is a definite possibility with present turbine aircraft. If, under an expanding scale of operations, indirect expenses can be held to 75 per cent of direct aircraft operating expense, breakeven requirements would vary between 30 cents and 35 cents per passenger mile, depending upon the level of utilization. This requirement is not much higher than the present yield of 28 cents. If this yield could be raised or if nonpassenger revenue could be increased over the $35.00 per hour assumed in the computations, a breakeven operation would be possible. 

                           III-57