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12/5/05

European Business Air News: Global networking and combination flights - a big opportunity for air ambulance operators

European Business Air News

Global networking and combination flights - a big opportunity for air ambulance operators

As the number of worldwide air ambulance flights increases, so the repatriation market grows. But the balancing act between cost pressure and quality also deepens. From my perspective, there are two key factors explaining the cost growth: One factor concerns improvements in regulations and standards for providers regarding issues such as response times, the expansion of geographical coverage, clinical equipment and standards during the past few years, especially in Europe. This affects crew resources (stand by requirements) and medical and technical devices (state-of-the-art equipment required), thereby resulting in increased costs. A less acceptable cause for the cost increase is the dramatic change in the general operating conditions due to the requirements of the joint aviation authorities and the general price increase for aircraft operations. As a result, FAI has estimated that over the past two years maintenance costs have increased by 10 per cent, fuel by 20 per cent, crew training also by 20 per cent, and insurance by 10 per cent. Another well-established European operator has estimated the following cost increases between 1996 and 2004: Handling and landing fees + 107 per cent; fuel + 89 per cent; all risk insurance / general insurance + 120 per cent; medical care + 37 per cent; and staff + 17 per cent.

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