Starting a small cargo company

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AndyTowPilot

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Andy
Hi Everyone,

A guy I flew with an number of years back started a cargo company. I don't remember it or him succeeding long term, but the premise was a single pilot operation seeking different cargo runs he picked up online.

I know this leaves out a lot of details, and I KNOW it is quite the production to set up a 135 operation with the FAA. That is not my question.

Does anyone know where some of these smaller cargo operators flying 310's, Navajo's, etc. are picking up business? Just curious.

Thanks,
Andy
 
I don't know for sure, but my guess would be that they contract with the big guys (FedEx, UPS, USPS, etc.) That is where I would look first if I were trying to set something like that up.
 
AndyTowPilot said:
Does anyone know where some of these smaller cargo operators flying 310's, Navajo's, etc. are picking up business? Just curious.
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Supplemental lift for big name cargo operations these says is tough. Turbine equipment is almost mandatory. For other work you'd have to hang out your shingle, advertise, make contacts and try not to lose too much money.
 
AndyTowPilot said:
Does anyone know where some of these smaller cargo operators flying 310's, Navajo's, etc. are picking up business?
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FWIW: There are/were some boutique markets for smaller cargo ops like legit drug runs for pharmacy supply systems. But I wouldn't know how to find out about them only that I worked on an aircraft once who was providing this service and he said there were various similar ops throughout the country.
 
The UPS and FedExs of the world are probably going to be looking for a larger operator than someone operating a single Navajo. Probably looking at 10-20 Caravans or 1900s.
 
Here is another thought ... any ideas on getting a light twin to earn its keep? I fly a laptop fulltime, I can afford a twin - I just can't justify that kind of cost as a person who has been frugal his whole adult life. But I still want one. What stories do folks on here have to legally and safely reduce cost? I would absolutely consider an A&P program if one was in town. As a dumb kid in college, I passed on the opportunity to attend community college for A&P first, then finish my bachelors right after. Still kicking myself for not doing that.

I have heard leaseback to flight schools can be a disaster, same with leaseback to a part 135. Many such contracts are not in the owner's best interest.

Of course, I could sell my boat, or retire later ... but that isn't happening :)
 
AndyTowPilot said:
What stories do folks on here have to legally and safely reduce cost?
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I only have one example to offer. Had an owner-assist customer who upgraded to a twin once his family started to get older. But even working owner-assist his costs were a bit on the high side so he elected to bring in a partner vs any lease-back, etc. The partnership dropped some costs but not to the level he wanted plus the partner wasn't interested in the owner-assist side. He ended up getting a 3rd partner which worked well but had to relocate the aircraft to a different airport and I lost track of the aircraft. So a partnership is option.

FYI: simply obtaining an A&P will not drop your costs overnight. Theres a bit more to the equation than just the certificate. Perhaps discuss owner-assist with your APIA and see if you can lower some costs that way and increase your preventative mx tasks on the aircraft in the mean time.
 
Bell206 said:
I only have one example to offer. Had an owner-assist customer who upgraded to a twin once his family started to get older. But even working owner-assist his costs were a bit on the high side so he elected to bring in a partner vs any lease-back, etc. The partnership dropped some costs but not to the level he wanted plus the partner wasn't interested in the owner-assist side. He ended up getting a 3rd partner which worked well but had to relocate the aircraft to a different airport and I lost track of the aircraft. So a partnership is option.

FYI: simply obtaining an A&P will not drop your costs overnight. Theres a bit more to the equation than just the certificate. Perhaps discuss owner-assist with your APIA and see if you can lower some costs that way and increase your preventative mx tasks on the aircraft in the mean time.
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Thank you! New to this forum, but love the positive and encouraging responses! Possibly I just need to become less allergic to spending money! I can't take it with me ...
 
AndyTowPilot said:
any ideas on getting a light twin to earn its keep?
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Once the insurance and other issues are set up properly, put an MEI on your insurance and allow the airplane to be rented for Multi Engine time building.

I am using an Aztec set up that way. Dry rate is affordable to me and enough for “Molly” to earn her keep. I hope to get my MEI done soon so I can become one of the authorized MEI’s for her.
 
Get in touch with the undertakers guild. They have to move bodies around the country and getting into small airports my be a selling point for your business.
 
cgrab said:
Get in touch with the undertakers guild. They have to move bodies around the country and getting into small airports my be a selling point for your business.
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PM'ed you. Love the idea and would like to hear more.

AggieMike88 said:
Once the insurance and other issues are set up properly, put an MEI on your insurance and allow the airplane to be rented for Multi Engine time building.

I am using an Aztec set up that way. Dry rate is affordable to me and enough for “Molly” to earn her keep. I hope to get my MEI done soon so I can become one of the authorized MEI’s for her.
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PM'ed you also. I am an MEI insurable to instruct if I bought a plane in that situation. Would also allow other, young MEI's without a day job to do it also so long as they were safe and affordably insurable. If you get the chance, let's catch up on PM.
 
cgrab said:
Get in touch with the undertakers guild. They have to move bodies around the country and getting into small airports my be a selling point for your business.
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And, your passengers are probably not the type to complain either!
 
Dry Creek said:
And, your passengers are probably not the type to complain either!
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Totally off topic, but funny! I am a big recreational boater also (1977 Silverton 31C). I was at Kelley's Island in Lake Erie and saw a boat named "Urn'ed it!" Nobody was willing to outwardly ask them but me. I said, "Hey! Are you a funeral director???" He replied in the affirmative. It turns out he is from my hometown and is a well respected mortitian. He told me I would have liked his last vessel's name even better: "No Wake Today" ... :D:D
 
cgrab said:
Get in touch with the undertakers guild. They have to move bodies around the country and getting into small airports my be a selling point for your business.
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Zeldman said:
No, but the folks waiting on the ground sure will...:incazzato: :lol::lol:
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my first paid flying was carrying bodies for the local undertaker in a Cherokee Six. He told me to always park in the furthest corner of the airport so it was less likely for somebody to accuse me of mishandling Grandma’s corpse.
 
Some of the undertakers I dealt with were pretty weird...but I guess that comes with the type of job they do.
 
I used to fly a 23-250 with a DeVore casket door. Man, that was a nice little short-distance freight hauler. Mostly groceries, so even with only one seat, we bulked out way before we grossed out.
 
I worked with a guy who used to fly twin Cessna's for a similar outfit as you're proposing. Much of their business was shuttling specialized parts for AOG and factories with broken down equipment. Think stuff where the cost of being down far exceeds the cost of chartering a flight just for a replacement part.
 
I know a guy locally who makes runs from TN to the gulf in a 207 and brings back seafood for fish markets etc. 3 flights a week. Seems like a good gig
 
I've always wondered if I could put the pieces together to make something like this work. Guess I'll have to start exploring the possibilities...
 
cgrab said:
Get in touch with the undertakers guild. They have to move bodies around the country and getting into small airports my be a selling point for your business.
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But if you crash, they're going to act like you killed the guy.
 
AndyTowPilot said:
Here is another thought ... any ideas on getting a light twin to earn its keep? :)
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AndyTowPilot
I need a Twin in Northeast Ohio for timebulding. Message me. And maybe we can figure this twin thing out.
 
Zeldman said:
Some of the undertakers I dealt with were pretty weird...but I guess that comes with the type of job they do.
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As a pastor I've dealt with more of them than I would care to, but that's the nature of the job. I will say most of them have been very professional with some rising to the top of that list. Only had a couple negative experiences. And yes, one or two odd individuals along the way.
 
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