Case Scenario:

• My TT 2200hrs, ATP rated, w/KA experience.

I’ve accepted a position to manage/pilot a refurbished zero-timed-out G600 glass Aerostar 700 series. I’ve been asked to present a Power-by-the-hour billing proposal.

The owner is a great guy; the position is a perfect niche for me because I like the capacity & scope of the project, home airport bonus. The a/c will be used as a business tool only 5 - 10 times/month, 625nm legs.

I need help preparing the standard Pay:

• Block Time?
• Duty Time?
• Operations (Maint, Ops & selling his other a/c projects)?

Do I establish an LLC? And I’m thinking of asking a $1500/mo. retainer.

I know that I have a learning curve.

Thx,

 

I'd just go day-rate, probably $400/day, nix the $1500 retainer, because if it was me I'd go find someone else. Now if they only paid you say $100-200/day with the retainer, then it might balance out.

Hourly rate could also be something of $40-50/hr flight, $20-30/hr standby if you so desire.

If you'd base it off a straight yearly salary(which some people don't want to do, but honestly could be cheaper for them), I'd say $35,000 for starters, maybe up to $40k first year depending on the actual amount of work you do.(think avg 7days/mo @ $400=$33k/yr, 10days/mo=$48k). If you can pick up some other contract work out there, and have plenty of "heads-up" time then you would have a pretty sweet deal going, contract would be the way to go and really earn a lot of extra money without the obligation.

I'm just going off what I would want to be paid in your position and experience. Also, what geographic area are you in? Some places, those rates could be too high, and a few others it might be way low. If you could find out what some 400-series Cessna drivers are getting, I'd say that'd be a fairly good starting point. Good luck!!!!

 

It may be advatageous for you (and the business) to be on the company's payroll (and probably less head-ache) - but it all depends on the company gross/tax obligation/ write-offs. I'm not trying to turn you into an accountant - but you may be able to get some type of benefits if the company has a certain plan for other employees and he may be able to save money if you are on his payroll.

 

Thanks for the feedback; it's the west coast.

 

10 days a month doesn't seem all that part time to me. Many fully employed corporate pilots fly far less days than that and are still given full time benefits. Don't sell yourself short. You have to pay taxes and Social Security on all the money earned and probably pay health insurance on top of that. Its easier to get the money right away than try to get it after you have started the job. I am just trying to avoid from having to read a post from you in 6 months saying that you are working full time without benefits and not being paid enough.

 

You should be paid everything that a B90 King Air pilot makes--after all, you'll be passing a lot of those old A/B/C90's up!!!!

X

 

It'd still get the "it's a piston" rate. I know that my company charges $500/day for my services for our sales/mx departmet work. We have a few other guys at the airport that charge the same thing(except they get it all!). These guys are rated on Piaggio's, Cheyenne's, TBM's, Meridian's, and obviously anything below that, so they have the time and experience to back it up. Also this is in Indiana, so equivelant east/west coast could add $100-ish I'm guessing.

 

They get it all.... including self employment tax and no benefits.

 

I agree, but the trade-off being is technically my daily "salary" is much less per-day(not even $200/day), but the trade is I'm paid regardless of my flying activities. Mind you that is before taxes, benefits, etc.. pulled out.

Figure the avg for our OP, 7days/mo @ $500/day(since she's west coast) that's $42,000/yr just at that job, obviously there's several other days she could take some side-work. I'd go for it, and honestly I had some decent insurance and 401K's can be set up at any bank when my previous company had no benefits at all. Bonus is if you're married and your spouse's job has some good offers, then you're covered anyways.

 

It was clear that Salary is not an option at this time, which is 'ok,' I have great benefits through my spouse. I think I'll propose something close to your earlier quote. A flat daily fee for Block & duty time, then a second hourly rate for a/c management responsibility's.

I'll try to hit it as close to industry standard as possible. Thx for the advice.