What are the yearly fixed expenses for airplane ownership? Typically, the list starts with insurance, subscriptions, hangar, annual, and lease payments – if there is a loan on your aircraft. Just those items alone can total to more than $13,000 per year. Want to save 50% – 75%?
The table listed below represent Cirrus SR22 yearly fixed expenses. We’ve previously reviewed these in detail and you can click the link to return to each specific article.
Yearly Fixed Cost of Airplane Ownership
|Yearly Fixed Expenses||Year||Amount|
In a shared airplane partnership you can reduce some of your cost by more than 50% – 75% depending on the number of members. In this example, you’d save $10,085 over individual ownership with a four member partnership (13,447 / 4 members = $3,362 each). That savings is only on the yearly fixed costs shown above, which can go a long way toward extending your flying budget.
Last week we reviewed Aircraft Life Limited Components which expire based on calendar time and not hours flown. Next week, we’ll conclude by reviewing a general group of fixed costs associated with operating an airplane. Being in a shared airplane ownership will lower your cost in these areas also.
Categorizing expense as scheduled or unscheduled is not very helpful in determining how to allocate the cost among members. Typically, only two categories of airplane operating expense are needed: “fixed expense” and “variable expense.” This grouping of annual costs would be categorized as “fixed expenses.” Usually, fixed cost would be split equally among members because it’s not calculated into the hourly operating rate and it shouldn’t be. A fixed expense can be incurred regardless of the number of hours the plane is flow.
Flying is expensive, but gaining a clearer understanding of the cost can help you find ways to save and extend your flying budget.
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