Want to Buy an Airplane? Read This First

Know exactly how much money you need—and will need—to join the airplane ownership club.

Thursday, December 30, 2021 at 08:54 AM ET

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There are many different variable and fixed costs that you must consider before purchasing an aircraft. [Credit: Adobe Stock]

Key Takeaways:

Aircraft ownership entails significant fixed (e.g., hangar, insurance, loan payments) and variable (e.g., fuel, oil, maintenance) costs, requiring a quantitative approach for financial planning.
Fixed costs, which can total nearly $15,000 annually for an older C-172M, become more affordable per hour with increased flight time (ideally 200+ hours per year) or through shared ownership with partners.
Variable costs are heavily influenced by the hourly operation and necessitate dedicated savings for major expenses like engine overhauls and ongoing maintenance to prevent unexpected grounding.
Overall annual costs for a C-172M flying 200+ hours can exceed $30,000, with two-thirds of the expense being non-loan related, highlighting the importance of cost optimization.

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Owning an aircraft is definitely a matter of High Finances. Figuring out the smartest and most responsible way to do it is a subject I’ll spend the next few columns breaking down.

When it comes to making flying more affordable, I plan to take a more quantitative approach than most. We’re going to look at some specific examples of the fixed and variable costs of owning an aircraft, using a custom spreadsheet. Once we have a handle on the basics, we’ll use that spreadsheet to find ways to optimize and reduce costs.