Posted: September 13th, 2017

Helicopter Business

Helicopter Business

Paper details:
This scenario incorporates a real life business concern involving surplus acquisitions. Research this issue by conducting an analysis to the legalities, pros, cons, and possible alternatives. STORY: You and a friend have just secured helicopter licenses. You both possess some good business sagacity. So, you think about starting a helicopter business. While visiting the local air show you check out all the static displays. You notice a brand new Bell “Jet Ranger” used by Acme Air Tour, the helicopter that’s contracted to “Eyesight News.” You talk to the owner of the company and she tells you business is great! The aircraft acquisition was only two million dollars. Ugh, you walk away thinking that’s a hefty price to get into the helicopter business. Next, you walk over the local police helicopter that’s on display and it too appears to be a Bell Jet Ranger. You engage the police pilot in a conversation regarding your desire to get into the helicopter business, but acquisition costs are pretty scary. He replies, “The City got this helicopter for free!” He adds, “It’s a surplus Army OH-58A and is “similar” to the civilian “Jet Ranger.” He adds, “We did some paint and it works and looks new!” You’re impressed with the machine. Heck, it resembles other civilian Jet Rangers. Later, you and your business partner discuss the possibility of securing a military surplus OH-58 helicopter and starting a commercial charter business. You come up with some basic questions like; can military surplus helicopters be used in the civil market? If so, are there any caveats? Examine the issue and discuss the viability, legality and options etc.

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