Hello all,
I have a "pipe dream" of starting my own part 135 operation. Nothing too fancy just maybe a navajo and a seneca or two. I'm just curious, what factors go into the cost structure of operating a 135. Obviously there's the fixed costs: hangar/facility fees, lease/loan on aircraft, insurance etc. And the variable costs: fuel, maintenance (which could be considered fixed for a few things). Is there anything else?

I figure that maintenance, lets say for a Navajo is roughly $62 ($22/hr for overhaul-$40,000/1800hrs, $3000/100 for 100hr +$10/hr reserve)
Fuel is 24gals avg @ ~$5.25= $126

Then your fixed costs get distributed depending on how much you fly. How many charter operations can fly a piston twin 50 hours a month?
If that's attainable, then 50 hours a month at ~$600/month hangar rental (just a guess) ends up being $12/hr

My question is, for those who have been inside a small part 135, what does insurance end up being? And financing? I realize this may be an impossible question because of the many factors that affect it, but I have nothing to even base a guess off of.

Would a rough estimate of operating costs (Fixed+variable) be around $500-600/hr? That leaves razor thin margins for the administrative costs, pilot pay, etc. How to charter ops. do it?

Thanks for reading