General Costs

What are some of the costs associated with owning an airplane?
Particularly, I'm partial to a single engine four seater probably of
the Mooney's
I'm not to leary of costs such as planned/unplanned maintenance but
admittedly understand nothing of the FAA regulations involved. Is
there some kind of annual/bi-annual checkup you have to have on the
plane? What are pitfalls to watch out for? For instance I've heard
just because older planes are cheaper doesn't mean their TCO is. Is
the high TCO on older planes because they're just old or does the FAA
have more stringent guidelines in their inspections/checkups whatever.

-Opey

On 20-May-2005, wrote:

What are some of the costs associated with owning an airplane?
Particularly, I'm partial to a single engine four seater probably of
the Mooney's
I'm not to leary of costs such as planned/unplanned maintenance but
admittedly understand nothing of the FAA regulations involved. Is
there some kind of annual/bi-annual checkup you have to have on the
plane? What are pitfalls to watch out for? For instance I've heard
just because older planes are cheaper doesn't mean their TCO is. Is
the high TCO on older planes because they're just old or does the FAA
have more stringent guidelines in their inspections/checkups whatever.


Cost of airplane ownership is sufficiently complex that one could -- as some
have -- write a book about it. The short answer is that costs can be broken
down into four general categories: fixed costs, direct operating costs,
maintenance, and upgrades.

Fixed costs include insurance, storage (tiedown or hangar) and other stuff
the costs of which do not depend on the number of hours the airplane is
flown. Annual insurance premiums will be wildly variable depending upon the
airplane (value and complexity) and the experience and ratings of the
insured pilot(s). For a very low time pilot without an instrument rating
and extensive retractable experience, insurance for a Mooney would be hugely
expensive, if available at all. Storage costs, on the other hand, vary
wildly depending on location. Tiedown at a rural airstrip in the middle of
nowhere might be free or close to it, while a hangar for a single engine
airplane at one of the metro New York airports might be close to $600/month

Direct operating costs, which include fuel, oil, and reserve for eventual
engine and prop overhaul, are mostly dependent on fuel prices. On an
airplane like a Mooney 201, and assuming fuel is $3.25/gal, a figure of
about $45/hr would be about right.

Maintenance costs are the real wild card. For privately owned airplanes,
the FAA mandates an annual inspection. The inspection itself is not a huge
deal, but fixing the problems that the inspection reveals can be. In
addition, there is a constant potential for expensive maintenance
"surprises" that might pop up at any time. And of course there are the
routine things that wear out -- tires, battery, spark plugs -- but they do
not constitute much of the maintenance costs except for fairly new
airplanes. As an EXTREMELY rough estimate, figuring an AVERAGE of $3,000
annually for maintenance might be about right for an airplane like a Mooney
201, but it could easily be double that (or more) in any given year.
Finally, there is always a potential for mandated maintenance in the form of
an FAA Airworthiness Directive. Some ADs are minor (at least in cost of
compliance) but some can result in thousands of dollars in owner expense.

Generally speaking, upgrades -- airframe add-ons, new avionics, paint, and
interior refurbishment -- can be done at the owner's discretion. Most are
big-ticket items.

Cost of ownership, other than initial purchase price, is much more dependent
upon the class of airplane than its age. You can buy an older Mooney for
maybe 50% of the cost of a newer one, but total operating costs for he two
will likely be about the same over the long run. Insurance costs for the
newer, more valuable airplane may be a bit higher, but this is offset by the
likelihood that the older one will incur higher maintenance bills and be
more in need of upgrades. Of course, if you buy a brand new airplane with a
factory warranty maintenance costs will be predictable (and low) in the
first years of ownership, but this is offset by steep depreciation.

Sorry to be long-winded. I hope this answers some of your questions.

--
-Elliott Drucker

Excellent response, very much on target. One other cost: opportunity
cost; if you hadn't spent all that money for an airplane, you could
have invested it and earned 2-3% a year after tax and inflation.

In article .com,
"Paul kgyy" wrote:

Excellent response, very much on target. One other cost: opportunity
cost; if you hadn't spent all that money for an airplane, you could
have invested it and earned 2-3% a year after tax and inflation.

maybe.

There are few guarented investments.

--
Bob Noel
no one likes an educated mule

wrote:
What are some of the costs associated with owning an airplane?

The so-called "fixed costs" are parking (tiedown or hangar rent), insurance, the
annual inspection cost, and maintenance costs. "Per-hour" costs are fuel,
landing fees, and oil. Then there are personal expenses, such as charts, weather
access costs (cable or such), headsets, etc..

Is
there some kind of annual/bi-annual checkup you have to have on the
plane?

Yes. Each private aircraft must be inspected annually. Most owners also have
certain maintenance or enhancements done at that time as well. On a Mooney, the
cost will be over $1,000 unless you do a lot of the grunt work. Aircraft used
for certain types of commercial work must be inspected every 100 hours.

Is
the high TCO on older planes because they're just old or does the FAA
have more stringent guidelines in their inspections/checkups whatever.

They're older so they may break down more often.

George Patterson
"Naked" means you ain't got no clothes on; "nekkid" means you ain't got
no clothes on - and are up to somethin'.