Over the past several months, we’ve reviewed “fixed expenses” associated with airplane ownership and have organized them into three groups: Yearly Fixed; Life Limited Components; and Other Fixed Costs. You can review detailed information about each of these by clicking the links below.
This article summarizes Yearly Expenses, Life Limited Components and Other Fixed Costs incurred for operating a Cirrus SR22 over a 3-year period and for about 600 hours. In just a few years, you could save $38,000 on fixed expenses in a shared airplane partnership instead of individual ownership.
Cirrus SR22 Fixed Cost during a 3-Year Period
|Description||Per Yr. Avg.||3 Yrs.||1/4 Share||Savings|
|Subscription SiriusXM aviation||852||2,556||639||1,917|
|Life Limited Components||1,486||4,457||1,114||3,343|
|Other Fixed Costs||1,952||5,855||1,464||4,391|
Shared airplane ownership can cut some of your cost by more than 50% – 75%. Your savings depend on the number of members in the partnership. In the table shown above, you’d save $38,000 in just 3-years over individual ownership with a four member partnership (50,653 / 4 members = $12,663 each). Your cost experience may vary.
In a shared airplane ownership, typically only two categories of airplane operating cost are used: “fixed expense” and “variable expense.” Usually, fixed cost would be split equally among members because it’s not calculated into the hourly operating rate. We’ve not increased our hourly rental rate to cover the type of fixed costs shown here and in most cases you shouldn’t either.
Flying is expensive, but having a better understanding of your cost can help you find ways to save. And, a shared airplane ownership could be one of the biggest ways to extend your flying budget.
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