Ash Ketchum wrote: ↑Sat Jan 09, 2021 5:14 am
I actually had the same idea to buy a caravan and subcontract with bigger cargo carriers. I agree that getting the AOC and other steps required by TC are a headache however I think the main issue is the feasibility and potential profit margins of this business idea. I also don't think there would be much if any profit leftover if a management company manages the aircraft and flying.
Subcontracting does seem like the best way to move forward but I don't think cargojet or morningstar will be interested and they own alot of the cargo market in the south. The northern communities also have their battles over cargo contracts so the market could be oversaturated already. Worth a try though, I was going to cold call and email around a bit and see what happens.
Another tool for you: Air Operator Search:
https://wwwapps.tc.gc.ca/saf-sec-sur/2/ ... x?lang=eng
You’ll find that Cargojet is a 705 air operator, and does not have a Caravan on their certificate. Morningstar carries both 703 with a caravan, and 705. If they don’t have a Caravan on there, you’ll have to make it a hell of a sales pitch to make it worth applying for another AOC classification. Adding an aircraft type isn’t free, and comes with a bunch of extra work and costs for the air operator holding the certificate (fees for adding it to the AOC, manual amendments, maintenance schedule approval/amendments, insurance increases, training costs, etc).
And yet another tool, poke around on some websites of the air operators and see if you can find their Tariffs. That document may contain the cost that they operate the aircraft for, give you an idea if it’s still worth it to you.
Cargo hauling to and from small destinations has major challenges. Weather, insurance costs (you might enter a higher risk category this higher costs), short flights add extra cycles which equals more maintenance costs, piss poor airport maintenance, northern areas you’ll contend with daylight limitations, just getting enough cargo to fill the plane is a challenge, getting people to actually meet you on time for loading and pick up, and if you can get a lucrative “bag run” style contract where you hit up many airports in a row, know that you don’t get paid (the same, if at all) if you’re late, and they don’t care why, weather, mechanical, etc. It makes people take risks and do stupid things to get into the airport, more than a few crashes have happened from pushing conditions. A Caravan is NOT an all weather aircraft... there’s a lot of reasons that many of the remote places get their cargo by ground from major hubs. Fly in, fly out locations are an exception but they tend to be small or already serviced. You’re going to have to either identify an unfilled need, compete with current operators, or get on board with the same.
Not trying to puncture your dreams but trying to help you understand the scope of what you’re trying to get into.