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

Verified

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

Key Takeaways:

Aircraft ownership involves substantial fixed and variable costs, with a 1975 C-172M example showing total annual expenses potentially exceeding $30,000 for 200+ flight hours.
A quantitative approach is crucial for understanding and managing these costs, necessitating careful budgeting for fixed expenses like hangar and insurance, and variable expenses such as fuel, oil, and dedicated reserves for maintenance and engine overhauls.
To make aircraft ownership more affordable, it is strongly recommended to fly at least 200 hours per year, or to share ownership with partners to significantly reduce individual fixed cost burdens.

See a mistake? Contact us.

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.