"Bartscher" wrote in message
...

Thanks for the information. I was assuming the insurance would increase
with me
as a named insured on the policy and I would definitly have to cover that
cost
as a part of leasing the plane. However, I wasn't thinking of the issue of
the
insurance not allowing the owner to charge for the plane.

Does anyone know if it would be possible to form a "temporary" partnership
of
some sort to get around this? I may need to call one of the aviation
insurance
underwriters to discuss if there is an acceptable way to structure
something
like this in their eyes.


However that gets worked out, you can expect to have to share the costs of
ownership, which are as much as or more than operating expenses.

Here are the real numbers.

We have three partners in our reasonably well-maintained 1980 fixed gear
Turbo Saratoga PA32-301T. We each pay $460/month into the holding company
to cover non-usage-based expenses (hangar, insurance, maintenance, parts and
supplies, taxes, etc.). That's just to keep the airplane available for use.
Then we pay $100/hr wet for use. That covers the fuel, oxygen, transient
hangar or tiedown, and other nonpersonal fees normally incurred at FBOs. The
hourly rate also includes accrual for the major recurring usage-based
expenses of engine/prop overhaul, paint, and interior refurbishment.

These numbers are based on historical actual expenses, reviewed and adjusted
quarterly.

All this is separate from what it takes to buy a share in the airplane. And
it does not include avionics replacement or upgrade, which are handled by
member assessments.

If you were to use my airplane for $100/hr, you would just be paying for
what you used up and getting a free ride on the rest of the costs. If the
airplane is used 200 hrs per year (billable), the fixed cost of ownership
represents an additional $82.80/hr (not counting any assessments) of cost.
If you wanted to have a 50-hour trial fling with my airplane, I would have
to charge you at least $180/hr, even if insurance would let us.

Just some data to think about.

Stan