Offsetting Aircraft Ownership Expenses Essay

712 words - 3 pages

If you only fly once or twice a year, Schubach Aviation owns and manages an extensive fleet of aircraft for on-demand charter services. When you’re in the air and on the move more frequently, full ownership makes more sense from a fiscal perspective. The Sherpa Report recommends that anyone flying more than 400 hours per year consider whole ownership over fractional ownership or on-demand services.

The sticker shock of buying your first plane can be mind-numbing. However, the initial acquisition cost is closely followed by ongoing expenditures for hangaring, routine maintenance, crew training and certification, salary and benefits for flight crews and maintenance technicians, insurance, inspections and a host of other necessary expenses to keep your aircraft operating in peak performance.

At first glance, shared-ownership (fractional ownership) might seem financially appealing. But when you consider the initial capital investment -- which can range from a few hundred thousand to more than a million dollars – plus inflight catering, pilot fees, fuel and maintenance, for essentially a rental agreement with availability constraints and limited ROI, private ownership with charter management services has a plethora of benefits.

Personal aircraft require routine maintenance and upkeep in the same way that a luxury automobile requires frequent washing and waxing to protect it from the elements and scheduled inspections to maintain the operating integrity. Even when a plane is housed in a controlled environment, exposure to weather on the tarmac and in flight exposes the craft to potentially harmful elements. The biggest cost of ownership is asset maintenance.

One of the most advantageous strategies to offset costs associated with aircraft ownership is to place the management and operation of the vehicle in the hands of a professional management team.

Filing for Part 135 Certification with a professional management company like Schubach Aviation alleviates many of the maintenance headaches and operational expenses normally assumed by private aircraft owners. Part 135 Certification, issued under Federal Aviation Regulations, allows owners to make their aircraft available for hire when not in use for personal activities.

Standards for operation, maintenance and training are higher under Part 135 than traditional standards. Just one...

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