How much startup money is really needed?

If I want to start a small one man aircharter company with a small plane, say a C182 or similar. How much money would I really need?

The cost for the 182 and anything else?

I'm assuming here that I've gone to school and got my required licences and ratings.

Would I need something like $300k or more like 500k and then some?

You will need a business license. First year is cheap, subsequent years are flat rate plus sliding scale based on previous year's earnings.

You will need a commercial carrier license (required for anyone transporting the public for a fee, whether taxi, bus, rickshaw, or airplane).

You could have a home office but will have hangar fees and maintenance fees for the aircraft.

Now the major expense - insurance. Comprehensive coverage for worst case scenario - you, passenger(s), aircraft, and any ground damage from a fatal accident (5,000ft, three passengers, engine failure, despite your best efforts the airplane plummets into a school ...that's what the insurance company will be thinking about).

Your best bet is to become a pilot for an established air taxi service. They will handle all of that and you will get first hand experience of such an operation, then decide if you want to do it on your own.

jgf is right, you should first work for an established service to find out what it's like. You'll learn a LOT in the process. For air taxi, the FAA has some additional requirements beyond just a business license. And a one-man air taxi isn't, IMHO, very practical, since you can only service one customer at a time, thus having trouble getting repeat customers.

But get your pilot certificates first, and the required experience (a fresh commercial license won't hack it).

jgf is right, you should first work for an established service to find out what it's like. You'll learn a LOT in the process. For air taxi, the FAA has some additional requirements beyond just a business license. And a one-man air taxi isn't, IMHO, very practical, since you can only service one customer at a time, thus having trouble getting repeat customers.

 

But get your pilot certificates first, and the required experience (a fresh commercial license won't hack it).

The FAA Requirement falls under Part 135... check out places like the AvCanada Bush Pilots Forum; there's lots of info there on Part 135 ops, as well as the Canadian equivalent, which is called Part 703.

Alan :pilot: