Helicopter Hire Business Financial Model

Description
The financial model is a business for hiring out helicopter primarily to Seaports for marine pilots transfers to & from vessels as well as private hires at an hourly rate.


The business involves acquisition of an helicopter and hiring it out primarily to a seaport. Boats have been used traditionally to move marine pilots from land to sea to receive incoming vessels as well as from departing vessels in deep seas back to land.


The business will hire out the chopper to a port for the pilotage business at a fee. In the model, you can play with the number of vessel calls in a particular port, the growth rate per year and also filter out the number of vessels that can be handled only by boats due to lack of landing sites. In the model, we have assumed 50% boat to 50% helicopter.


When the chopper is not in use, it can also be hired out to private businesses e.g. media industry, film industry, medical evacuation as well as individuals for safari charters, airport transfers, tourism etc. This is charged in a per hour rate and can be adjusted in the model assumptions. For the port, the revenue will be based on per vessel and will be dependent on size of vessel. 


Number of hours when the chopper will be hired in a month is projected on a month to month basis as well as number of vessels to be handled by the chopper.


Operating costs such as fuel, maintenance, manpower as well as private operator margin have been included as it is assumed the chopper will be managed by an operator with experience in running such kind of a business. The fuel consumption, maintenance schedule, pilot rates can vary from time to time or geographically. These can be adjusted accordingly.


The helicopter (asset) is funded by a mix of debt and equity and these can be adjusted accordingly in the assumptions. There is a financial ratios tab showing various ratios analyses as well as computation of NPV, IRR and Payback Period in the assumptions tab.