I need help with a business plan.

[Tonala2k]

I am a low hour CFI/MEI/CFII with corresponding commercial ratings. My job has provided me a contact that wants me to be their 24/7 on call pilot flying their aircraft. They do not want to hire me through my current employer as they would have to subject themselves to my first come first serve schedule and the company's rates are too high for those terms.
A few complications would be that I would clearly loose me current job as it is a conflict of interests. Also, it would make it hard to continue instructing on the side because I would always be on call.
I am tyring to develop a comprehensive compensation plan that would allow me to take advantage of this opportunity without jeopardizing my current income.
I am stuck balancing out daily rates, hourly rates and per diem, overtime, limitations of flight hours, retainers...
I would really like some insight into the corporate world of aviation to make sure my proposal follows industry protocol, is competitive and reflects what a pilot should be paid (I am against cut rate pilot services, they hurt us all. A fair pay for a fair service).
thank you

 

[banned username 2]

Typically Corporate Pilots are on a fixed salary and have all expenses paid by the company (Hotels, Meals, Rental Car, etc...)

What type of aircraft?

 

[Tonala2k]

Salary eh.

Wow! That actually makes a lot of sence. How simple an answer. The question now would be what salary to shoot for. They have expressed that they want me on call 24/7 and wheels off within 3hrs of notice. Mostly it will all be scheduled in advance, but they want that flexability. Further, I will be opperating a C206 (non turbo) for short trips, and a C421 for longger hauls. With four clients I know they'll get their use out of me.

 

[L'il J.Seinfeld]

50k sounds about right.

 

[Tonala2k]

L'il J., are you serious? I'm clearly in the wrong area of aviation.

 

[banned username 2]

Wow! That actually makes a lot of sence. How simple an answer. The question now would be what salary to shoot for. They have expressed that they want me on call 24/7 and wheels off within 3hrs of notice. Mostly it will all be scheduled in advance, but they want that flexability. Further, I will be opperating a C206 (non turbo) for short trips, and a C421 for longger hauls. With four clients I know they'll get their use out of me.

I know a young guy (he has 1,700 hours, 700 multi) in the South Central area that is flying a nice CE-421C for a private company, he is making $46,000/yr salary PLUS they pay his cell phone bill (about $150/mo, the guy can talk!) PLUS they pay his housing (he is living in one of the owners rental houses)... He is the "Chief Pilot" (only pilot), but he does handle scheduling all the maintenance, and everything else for the airplane...

If you reverse engineer these numbers and add in the taxes that he would have to pay if they didn't pay those items and he paid them it would come out somewhere around the following:

Salary: $46,000/yr
Phone: $2,400/yr (Pre-tax, which would be about the $1,800 they are paying after tax)
Housing: $12,500/yr (Pre-tax, which would be about the $9,600 they are paying after tax)

Total "equivalent" Salary: $60,900/yr (This is the amount he would need to be paid to equal what he is getting now IF he had to pay his own phone and housing)... Of course, they pay all of his expenses while on the road...

His situation is a bit unique, but I would say a MINIMUM Salary of $40,000-$45,000/yr would be a good starting point... If they want you "on-call" they should also pay for a cell phone for you (not $150/mo) but a reasonable package (500-800 minutes a month)...

Looking at the 2004 NBAA Survey, it shows the following:

Piston Engine Chief Pilot - Salary
Average: $86,000
Low: $45,000
Median: $64,000
High: $165,000 (I want this guys job!)

There were only 4 respondents to this particular catagory.

Piston Engine Captain - Salary
Average: $60,000
Low: $15,000
Median: $25,000
High: $100,000

There were only 4 respondents to this particular catagory.

Hope this helps!

 

[Tonala2k]

Thanks for all the help.

One last question. How should I limit my hours? Xhrs/day Xhrs/week Xdays/week Xdays/month?

 

[PseudoName]

Thanks for all the help.

One last question. How should I limit my hours? Xhrs/day Xhrs/week Xdays/week Xdays/month?

Why not. It never hurts to ask. If you don't like their response, then maybe you might want to reconsider working for them.

Also, if your profile is correct, getting insured flying a 421 with 700 hrs might be tricky. Yes, I know that certain companies will insure for extra $$$. However, even with those companies, they may want you to have lots of multi 100-200 hrs or 50 hours in type.

...just food for thought before going in and asking for the moon.