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Rates In The Sewer

Nomex, don't leave !! I'm not sure what you are reading in these posts, but there is nothing wrong with what has been said by anyone........this is the sort of discussion we all hope for on this forum.......and surprisingly, it is still on-topic.
Not everyone will agree with each other, and I'm afraid there is not a definite solution to this problem on the horizon, but it's a great topic.

Here's my thoughts on the difference between 'good' and 'bad' companies...........
We often thought of the 'bad' companies as being the guys with lower published tariffs......but everyone starts with a similar published tariff, even the company from PQ that is the subject of this topic.
But, some companies are very willing to slash their tariffs to guarantee they will get the job.......often going way below the second-lowest bidder. These are who we should refer to as being the 'bad' companies.
Some companies rarely let machines go out for much less than their published tariff, (such as Nomex's and 407 Driver's I suspect), and these are the 'good' companies.
We must be careful when judging companies..........some may have a slightly lower published tariff, but rarely sell-for-less,......meanwhile some announce high rates and then have massive fire-sales to get their machinery working.
As mentioned above, allowances have to be made for steady customers, such as Hydro etc., but again, this should not be a cause for massive discounting.

Some companies leave the rate high, then don't charge minimums. A recent topic here about being paid for Non-Rev ferry flights would not have arisen if the pilot (and the company) were being paid minimums.

The Marketing guys in some companies are often to blame here. These guys seem happy to sign-up customers, yet they seem to have no consideration for whether the Accounting department will make a profit out of the customer's cheque when it arrives several months later.
.....(and don't forget to allow for the expenses incurred in signing-up the customer by these Marketing wizards.....often former pilots that have a penchant for playing golf and drinking booze on the company's tab)!!

As pilots and engineers there is little that we can do about the rates that our bosses let the machines go out for. But we should be able to determine how much we charge for our services per hour.
How much of the $600 per hour mentioned above is going to the pilot and engineer ? Are they being paid a fair wage ?? If not, why not......did they slash their hourly rates ? Or does the employer have to use-and-abuse low-timers to cover costs ?

Here's a thought......should we actually be publishing our own wage rates here instead of our bosses tariffs ? Should we check for low-ballers in our midsts before we complain about others ?
Or am I thinking to much about stuff we have little control over ??? Hmmmmmm....
 
Nomex, I don't see where you got yourself into trouble here, Like CM says, it's good clean dialogue. You always post the straight hard facts in a professional manner.
Published rates are one thing, what a company discounts to get work is another. I know that the operator in question has high published rates, but have decided to use an extreme low-ball rate to obtain this work. Will they make money on a 206 priced in the mid to high 500's? perhaps they will meet their costs, itf their crews don't break anything or incur any unscheduled maintenance.
What I see that it is doing is going against the efforts of other reputable operators (one of which lost the work because they wouldn't play the low-ball game) to raise rates to an acceptable level.
Unfortunately, I have worked for this operator in question, and one of their main tools in marketing was and is still the low-ball approach.

Please stick around Nomex, I'll back you up...if you need it 😀

PS I WAS flying for a very good rate when you last saw me .....
 
CM,


The pilot and company, in question, for the recent post on 'non rev' flights were paid for their efforts!!

Lets keep this topic positive!! No more negative energy, Fires are near!!!!!!
 
T-rex, sorry, was that a shot at me ?? I don't understand why ?? I don't know you or who you work for, and made no reference to you or anything you posted.

The Non-Rev Ferry topic was not posted by me. I just commented on it.
I'm glad to hear everyone got paid, but were minimums charged on that job ?? If so, why was the pilot complaining about only flying .6 per day ?? Was the company only getting paid .6 per day ??

I would like to keep this topic positive and light (that's why I add the silly photos), but it's hard to do when the topic is about 206s going for less than $600 per hour.

Your comment about approaching fires is welcome and interesting. I like fire season too.
But why do we get so anxious for fire season??
Is it because some companies finally get paid minimums and a reasonable tariff.
Is it because some companies had put all their hopes in just one sector (i.e. seismic, or logging) and then get hurt when the economy changes ??
Or is it because we just like the camp food ??
 
MMMM, I have a craving for boiled pork-chops, and canned peaches for dessert MMMM (circa NWT 1980) :blink:

(yea, that was BOILED, not BRoiled)
 
Just back from the blue skies - sorry to get anyone going, meant things in good humour, was just going to move over and let some other thoughts be posted - OK, you can't get rid of me that easy Blackmac, so here goes another shot.

CM & 407D, you laid out an accurate overview of the problem, agree also with posting salarys/contractors rates. Maybe if Kyle has some format similar to the forum polls, which may encourage everyone here to post their salary's with even more anonymity than we get just with our handles, we may be able to get a useful cross section of the industry. There would always be wild cards involved in such salary summaries, such as benefits, working environment, length of tours, how you are treated, etc that all have a real effect on the bottom line, which would be missing, but I think it still would be useful and interesting for everyone.

As for rates, I was thinking during the day, the only market that gets full tariff is training - no discounts there - I don't know what the charter rates are for the 22's etc but I would imagine that the student pays full tariff, does he not (I realize he does have an instructor on board and there are other benefits) but there never seems to be much variance in the rates charged for a specific type of trainer from one company to another. The only difference is what the company can offer the student (customer), such as reputation, clean machines, job prospects, quality of instructor, etc. Sounds like an ideal world for the general charter operators - everyone charges the same hourly tariff and get customers with the these other benefits the company can offer.

What's that John Lennon song again..."Imagine" - am I dating myself?
 
CM,

Sorry no shot at you, Just clarifying the post earlier! 😉
 
Fires? and Fire Season?

I just enjoy the stories on here. Everyone seems like they are in a much better mood in here.(My stash of prozac is running out for the year) Yes, 407, the boiled pork chops and warm 'fresh' fruit with unlimited supply of Gatorade!! Yummy!
 
So what's wrong with boiled pork chops? No wonder we are such a hard bunch to please. 😛 What if they are boiled in beer? Ya see, sounds better already!! 😀
 
I would simply like to know why our industry lets the customer tell us what they are going to pay for our service. Isn't it supposed to be the other way around???
When you need a plumber, you don't get to tell him how much you will pay him for fixing the leak? If you go to a restaurant do you don't get to tell the waiter that you will only pay 60% of the posted price on the menu for that burger? Why does forestry get to tell us how much they will pay us for our services?? Is it just me or is there something wrong with this picture?????

When are we going to start dictating what an acceptable price per hour should be instead of letting forestry set the bar for us??? It's like that stupid Visa comercial where the custormer stands up and pays for his meal by singing a song.
All together now. 1, 2, 3........
 
Jetbox, excellent point about the plumber. Our furnace broke down this winter, and we called a guy to come fix it. It was -25º that night, so waiting until morning was not an option. We paid $485 to have a $19 ignitor installed in the furnace, something a monkey, even Cyclic Monkey, could have done. There was no discussion as to ferry time from his house, or back, or minimums, it was $485 please. Now.

Boiled pork chops. Mmmmm. They're even better if you have to pay $60 each for them, in Coral Harbour. With no beer to wash them down.

When I was with that helicopter manufacturer (who will remain nameless because I don't want to start another fight), I did a customer acceptance on a light, FADEC 4-bladed rotorcraft (cleverly disguised so you won't REALLY know what machine it was) with a European customer.

My recent background at that time was with a large company (that will remain nameless but my flight suit had a large red crow on it), and all I ever flew with them were machines older than me and rebuilt wrecks.

So I asked him how it was that they could afford a new fleet of four-bladed rocket-powered air machines (they had bought a bunch). He said they got (in 1997) over $1700US / hour for the 407.

Our industry needs to quit eating its young and charge what these things are worth, and start paying the meat servos, wrench benders and spark farmers a wage that reflects the responsibility they carry.
 
Good point CTD.
Another arguement I heard for NOT increasing the rates was that if the rates increased to where they're supposed to be, a lot of customers would use other means to get the job done. (I believe this was also mentioned a few posts back)
If that's the case, this would probably mean that the amount of yearly flying would go down. So is less flying for all operators necessarily a bad thing???
If we break it down into simple numbers, lets say this year every operator flies on average 600 hrs per ship at an average tarif of 1000$ per a/c.
Would it be such a bad thing if the average went down to 400 hrs per a/c but at 20% higher tarrif? The machines fly less but make more money because there are less component changes, less 100hr inspections, etc. (these numbers don't necessarily add up, it's just an example!)
I know all you guys getting paid flight pay are freaking out right now but if your flight pay also is increased so that your yearly salary remains the same even if you fly a bit less, are you not still happy?? Would we not have a chance to finally enjoy a little bit more of the summer if we're not going crazy chassing the work so much??
If the national fleet is flying less on average then we are also working not quite as hard for the same money. Would this not help alliviate the shortage of pilots and especially engineers??
Of course, this only works if we assume ALL the operators are getting a higher tarrif, flying less and still paying their crews the same.

I know I know, I'm living in a dream world but heck, can't a guy have a dream???

:up: :up:
 
Attached link for USFS rates for light/intermediates. Interesting to see the HOGE requirement and the individual ships' performance at the specified HOGE alt/temp.


USFS
 
You think those rates are good, you should see the rates for the GOM. I couldn't believe the rates the operators are charging down here. $1600 for a 206, and up from there, they also have a monthly rate plus an hourly. Can't find the sheet right now but something like $2800 per hour for 407. Don't forget that's U.S. denarrow.
SOB
 
I have no problem publishing my rates - last year I got $160 per day, plus $60 p.h., plus $25 away from base and $35 food (may have been the other way round). Non-rev was paid for at the same rate. It was a steady year, in that I didn't necessarily work my tail off, yet I still managed to pull in $57K for just under 6 month's work. That would no doubt have been more if I'd managed to get to Kelowna.

Why do I like fires? i feel as if I'm doing something useful, very few customers tell me how to do my job and I get minimums. And i meet all those guys I met the year before.

Phil
 

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