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Component Times and Values
The page Component Times shows detailed component times and values of ZS-HMS. The left
section shows the component name, its approximate cost in US Dollars and the resulting
cost per hour in US Dollars. The middle section shows the time to retire (in red),
the time remaining, the percentage remaining and the value remaining.
The real interesting columns are the 2 on the right. They show the expected expenditure
over the next "X" hours. The current table has columns for the next 400 hours and the
next 1,000 hours. As can be seen, there are very few items which need replacement even
during the next 1,000 hours.
On the assumption that R 1,000 per operating hour are allocated for component replacement,
the bottom 2 lines show the expected cash flow in Rands. Due to the excellent residual
component times of ZS-HMS, there is a positive cash flow of almost R 1 million for the
next 1,000 operating hours, a remarkable situation seldom found with used helicopters.
Aside from the general condition of the aircraft, the residual component times should be
a major factor when making a purchasing decision. To aid in the decision making process,
component times can be valued and price adjustments may be made to allow for the comparison
of aircraft with different residual component times. The following table shows how this
can be achieved:
| Aircraft |
Comp Remaining |
Asking Price |
Price Adjustment |
Comparative Price |
| ZS-HMS |
60.23% |
2,100,000 |
0 |
2,100,000 |
| Aircraft X |
36.25% |
1,750,000 |
354,904 |
2,104,904 |
In the abve table, the "Price Adjustment" amount is based on a total component value of
R 1.48 million. This figure is derived from the sum of all components, which is 211,180
US Dollars converted to Rands (USD 1 = R 7). In the above example, ZS-HMS has a component
"advantage" of 23.98% (60.23% - 36.25%). When applied to the total component value of
R 1.48 million, the component advantage of ZS-HMS can be expressed as a monetary amount of
R 354,904. When added to the asking price of Aircraft X, a comparative price of just
over R 2.1 million results, which means the two aircraft are priced about the same in
real terms. The price adjustment can of course also work the other way. If ZS-HMS was
to be compared to an aircraft with an even higher component residual value, then ZS-HMS
should be penalised for the difference.
The above calculations only cover one small aspect of purchasing a helicopter. Many more
factors need to be taken into consideration, before a final purchasing decision is made.
One other factor, which has proven to be valuable, is the past performance of an aircraft
in terms of unscheduled maintenance requirements. ZS-HMS has excelled in this aspect and
proven to be highly reliable and predictable in its maintenance requirements.

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