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Charging Mechanism Examples

Schedule 6 and Schedule 7 of the Flight Sharing Agreement are referring to the charging mechanism including the charging mechanism examples:


SCHEDULE 6
Rates and Compensation Applicable to Shared Flights


1. Sharing Fee

The Helicopter Contractor shall charge a sharing fee of £220.00 per Passenger per Shared Flight or shipment of Cargo per Shared Flight.


2. Diversion Time

2.1 All diversion time associated with any Shared Flight shall be charged in accordance with the applicable Charter Agreement referred to in Schedule 2 hereto. Where a Monthly Standing Charge forms part of the Charter Agreement the Sharer shall pay a Diversionary Flying Hour Rate equivalent to the sum of 1/150th of the Monthly Standing Charge plus the Charter Agreement Hourly Flying Charge as set out below:

Diversionary Flying Hour Rate = Monthly Standing Charge + Hourly Flying Rate 150

2.2 The Sharee shall compensate the Sharer for the Diversion Time incurred at one of the following rates:

TYPE CHARTER AGREEMENT AD-HOC
EC225/S92 £4,000 £4,500
AS332L2 £3,500 £4,000
AS332L £3,000 £3,500
S76/EC155 £2,250 £2,500
AS365N/N2  £2,000 £2,250
AB139 £2,500 £2,750


3. VAT

All chargeable fees are stated exclusive of VAT which will be added at the rate prevailing at the time of billing.


4. Refuelling Costs

The Sharee shall compensate the Sharer for any refuelling costs which are duly evidenced by a valid receipt therefor incurred as a result of the requested diversion.


6. Worked Examples

6.1 Example A:

Sharer has AS332L aircraft on a Monthly Standing Charge contract with Helicopter Contractor

Sharer Monthly Standing Charge - £180,000.00
Sharer Flying Hour Charge - £1,500.00
Sharee Pax - 1 outbound / 2 inbound
Flightshare Passenger Rate - £220.00
Aircraft type - AS332L
Sharer/Sharee Diversion Rate - £3,000.00

Diversion Time - 0:30


Helicopter Contractor Invoice to Sharer
1) Diversion time * Flying Hour Charge = 0:30 * 1,500 = £750.00
2) Diversion Time * Monthly Standing Charge / 150 = 0:30 * 180,000 / 150 = £600.00
3) Passenger Charge * Qty of Passengers = 3 * 220 = £660.00
4) Total Invoice Value = £2,010.00 plus all 3rd Party Charges i.e. Landing Fees, Navigational Fees etc


Sharer Invoice to Sharee
1) Diversion time * Flying Hour Charge = 0:30 * 3,000 = £1,500.00
2) Passenger Charge * Qty of Passengers = 3 * 220 = £660.00
3) Total Invoice Value = £2,160.00



6.2 Example B:

Sharer has an Ad Hoc Contract with Helicopter Contractor

Sharer Flying Hour Charge - £3,500.00
Sharee Pax - 1 outbound / 1 inbound
Flightshare Passenger Rate - £220.00
Aircraft type - AS332L2
Sharer/Sharee Diversion Rate - £4,000.00

Diversion Time - 0:15


Helicopter Contractor Invoice to Sharer
1) Diversion time * Flying Hour Charge = 0:15 * 3,500 = £875.00
2) Passenger Charge * Qty of Passengers = 2 * 220 = £440.00
3) Total Invoice Value = £1,315.00 plus all 3rd Party Charges i.e. Landing Fees, Navigational Fees etc

Sharer Invoice to Sharee
4) Diversion time * Flying Hour Charge = 0:15 * 4,000 = £1,000.00
5) Passenger Charge * Qty of Passengers = 2 * 220 = £440.00
6) Total Invoice Value = £1,440.00



7. Revision of Schedule 6

7.1 The provisions of this Schedule 6, may be reviewed as and when necessary by a steering committee comprising the principal officers (listed in Schedule 1) of BP Exploration Operating Company Limited and Shell U.K. Limited.

7.2 If the steering committee agrees to a revision of this Schedule 6 pursuant to 7.1 above, then the steering committee shall prepare a revised Schedule 6 and shall communicate that to the Administrator and the Administrator shall advise all Parties of the revised Schedule 6 and the effective date of the same.

7.3 For the avoidance of doubt, the revision shall be limited to the reimbursement mechanism set out in this Schedule 6 and there shall be no discussion or review of the rates in any Charter Agreement.
 

Should this be in any way unclear please call Pia Mandler at LOGIC on 01224 577252 who will be able to offer further explanation or direct you to an appropriate contact within the helicopter service providers who will be able to answer your questions.