The Value of Shared Aircraft Ownership

It’s understood that costs differ by airplane type and with the passage of time, but a good valuation framework facilitates discussions, cost measurements, and process improvements. Our five-year case study on “The Value of Shared Aircraft Ownership” involved a $400,000 high-performance airplane, but the methodology can be applied to most aircraft co-ownerships.  The study also included information gleaned from hundreds of pilot discussions about airplane expenses and co-ownership issues.

Three co-owners each realized $169,000 in value through shared ownership of a high-performance Cirrus Turbo airplane over a five-year period.  The study identified $74,000 in direct expense savings per member compared to single-pilot ownership over five years. The analysis also quantified the value of member-contributed capital for airplane acquisition at $90,000 and goodwill from co-ownership formation at $5,000.

A three-step quantitative method was applied, which included establishing a valuation framework, organizing costs, and calculating values. The valuation framework included four categories: variable costs, fixed costs, acquisition capital, and co-ownership goodwill.

Variable Costs were items which increased or decreased relative to flight hours, such as fuel, oil, magnetos, brakes, tires, and engine.  Fixed Costs included expenses incurred regardless of flight hours. These costs typically expired based on calendar months, for example, hangar, insurance and life-limited items, such as annuals, AmSafe airbags, CAPS, etc.  Acquisition Capital came from member contributed capital.  Goodwill was derived from the formation of a successful co-ownership.

“The Value of Shared Aircraft Ownership,” by Jeffrey S. Brewer was published in Cirrus Pilot Magazine, April 2020. You can receive the “The Value of Shared Aircraft Ownership” 5-year case study for free, which includes information not previously published. Get the free Case Study

© 2021 Connecting Aviators® Above and Beyond

A Clear Solution for Ice Protection

It makes sense that a manufacturer based in Duluth Minnesota wouldn’t just slip up on the idea of ice protection. For almost two decades, Cirrus airplanes have flown with a clear solution for ice.  And, ice protection remains a highly preferred option among pilots of the iconic Cirrus SR22.  From the organization’s beginning, Cirrus Aircraft has focused on safety and innovation.  

The article “A Clear Solution for Ice Protection” by Jeffrey S. Brewer was published in the Special Safety Issue of Cirrus Pilot Magazine, April 2018. An electronic copy of the magazine, with the original article, is available through Cirrus Owners and Pilots Association.

Cirrus SR22 Known-Ice Protection (FIKI)

© 2021 Connecting Aviators® Above and Beyond

Being a Pilot is one of the best jobs according to U.S. News and World Report

U.S. News and World Report scored being a pilot one of the best jobs with an overall 6.8 out of 10 rating.

  • #3 in Best Social Service Jobs
  • #14 in Best Paying Jobs
  • #26 in 100 Best Jobs

“No single job suits all of us, but many of the best ones have a few attributes in common: They pay well, challenge us year after year, match our talents and skills, aren’t too stressful, offer room to advance throughout our careers, and provide a satisfying work-life balance. Whether the position is in demand is also a consideration among job seekers. U.S. News uses theses qualities to rank the 100 Best Jobs of 2021.”

The Bureau of Labor Statistics groups pilots into just two categories: airline and commercial. They define airline pilots as working scheduled airlines in the movement of people and cargo. Commercial pilots are defined as performing unscheduled flights for corporations, wealthy individuals, aerial tours, charter flights and agriculture. Air ambulance services is expected to be a large area of growth for commercial pilots. The Bureau of Labor Statistics projects a 4.8 percent employment growth for pilots between 2019 and 2029.

Pilots made a median salary of $121,430 in 2019. The top 25% quartile comp was $208,000. The lower 25% quartile comp was $83,880.

Reference: U.S. News and World Report, January 2021