The General Aviation Manufacturers Association (GAMA) Annual Report was released this week. We’ll peruse the numbers and share comments next week.
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
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
App Store TestFlight, which is part of Apple’s SDK tools for developers, makes it easy to test apps and collect valuable feedback prior to formal release. Our developers created version 1.0 and uploaded it to TestFlight.
Currently, internal team members are testing the app. Participants receive an email invite which allows them to download TestFlight from the App Store. Testers can to turn on automatic updates to ensure they’re always testing the latest build of the Connecting Aviators® app.
Internal Team members are evaluating version 1.0, build 8 of the app as of January 29,2021.
External Testers will be invited to evaluate the Connecting Aviators app in the near future. Are you ready to be an App TestFight pilot? You must be a pilot in the United States. Submit a contact form request through this website. After you’re cleared, you’ll receive an invite to access TestFlight from the App Store when external pilot testing begins.
© 2021 Connecting Aviators® Above and Beyond
As we enter the new year, we’re focusing on new beginnings. There’s no forgetting the vicious global pandemic, yet there’s help arriving with the scheduling of vaccines. We hope you and your family are able to stay healthy and safe.
Our Connecting Aviators® Interactive Aviator Software which helps pilots find, connect and share their passion for flying with fellow aviators is a new beginning. Stay tuned for dev updates. We’ll also report on GA market trends and the value of shared aircraft ownerships during 2021.
“Oh! I have slipped the surly bonds of Earth
And danced the skies on laughter-silvered wings;
Sunward I’ve climbed and joined the tumbling mirth
of sun-split clouds, –
And done a hundred things You have not dreamed of —
Wheeled and soared and swung high in the sunlit silence.
Hovering there, I’ve chased the shouting wind along,
And flung my eager craft through footless halls of air . . .
Up, up the long, delirious, burning blue
I’ve topped the wind-swept heights with easy grace.
Where never lark, or even eagle flew;
And, while with silent, lifting mind I’ve trod
The high untrespassed sanctity of space,
Put out my hand, and [sought the shekinah glory] of God.”
In memory of the author: John Gillespie Magee, Jr. (b. June 9, 1922 – d. December 11, 1941); an American aviator with RCAF and son of Christian Missionaries. References: Isa 58:14; PS 19:1; Ex 33:18-23; 2 Chr 7:14
We trust your flying this year was remarkable and wish your best dreams of flight become a reality in the New Year.
Connecting Aviators® development phase has begun which includes programming and architecture to support the native iOS iPhone and iPad applications.
The high-fidelity UI/UX prototype of the Connecting Aviators® app is complete. It’s what developers call the front end user interface and we’ll reveal more screens in the near future. Many thanks to the pilots that have provided feedback on the design.
The Dev Phase for backend buildout has now started. And, we’re still on schedule for release of the app in early 2021.
It’s Thanksgiving week. A time to stop and be still. A time to reflect.
With gladness, our founding fathers acknowledged the benefits and mercies which God bestowed upon them. Let us not neglect praise to Him for our many good provisions. The ordinary and extraordinary – such as, General Aviation. Our opportunity to ride modern chariots in God’s magnificent heavens! And, to share that experience with family, friends and the next generation.
Hope you have a blessed Thanksgiving with family and friends (Ps 100:1-5; Ro 6:23).
June – August 2020, allowed us time to meet with more than a dozen pilots to conduct validation testing on a black & white lo-fi prototype of the Connecting Aviators® app. Participants provided more than 15 hours of feedback on our various design iterations and features. Many thanks to all who help us.
We’re on schedule to introduce the new Connecting Aviators® app in 2021.