Letter From Ken Landers

Dear Dave:

After several hours of flying with an instructor, I successfully completed my flight review, 25 years after my last set of touch and goes. The thrill is back and it is better now because I’m not constrained by having to work 40 hours per week, and I’m in a much better financial situation.

I currently rent planes, but often when I want to fly, the planes I fly are taken. I expect I would have the same problem with a flying club.

I think I would like to fly to visit relatives and friends in neighboring states with the intention of staying 2 or 3 days, partially depending on the weather. So renting a plane for this is awkward.

So I have thought about purchasing a used plane. I have found many used 172s for a wide variety of prices. I can find hangar prices and insurance. The two costs I can’t get an estimate on are the annuals and the major overhauls.

Do you have any idea what those could run? I’m thinking I can get a fair 172 for under $50,000.

I probably wouldn’t put on a lot of hours per year and could change the oil myself.

Is there any source for finding out the real cost of airplane ownership? I need some kind of figure to convince my wife that it is feasible.

Thanks, Dave.

Ken Landers
Oregon, Wisconsin

Hi Ken!

I forwarded your question on to aviation expert, Pete Schoeninger, to answer your question in his “Ask Pete column immediately following this memo.

Thank you for your interest in Midwest Flyer Magazine.

Dave Weiman
Editor/Publisher

Dear Ken:

You have two items to consider: “direct hourly operating costs,” which are primarily a function of hours flown; and “fixed yearly costs,” which are recurring annual expenses.

Direct hourly operating costs per hour might be as follows: fuel and oil, $50; engine depreciation $10; airframe maintenance, $10. So let’s say roughly, $70 per hour in direct hourly operating costs.

Fixed annual costs are hangar rental averaging $2,000; annual inspection, $1,500; and insurance, $1,500, totaling $5,000.

In other words, our sample airplane might cost you $5,000 to own it for a year, plus $70 per hour to operate it. If you fly it 100 hours per year, your expenses are $7,000 (100 hours X $70) for operating costs, plus $5,000 for fixed costs, or $12,000 in total, or $120 per hour. Note, these are estimates only and your actual figures may be a lot more or less depending on the condition of the airplane when you buy it, local fuel costs, hangar costs, the amount of insurance you are comfortable carrying, how much you fly, how much maintenance you do yourself, etc. Remember, the more you fly, the less the fixed cost rate will be per hour.

Justifying aircraft ownership can involve the tax savings for legitimate business uses, transportation safety, reducing travel time, a comparison between the cost of aircraft maintenance compared with auto maintenance, and choosing flying over other forms of recreation. An airplane stands a chance of increasing in value, while most cars will decrease in value. Right now is an excellent time to buy an airplane with interest rates low, and the used market somewhat flat.

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