Aviation For Business – Understanding the Cost of Aircraft

Understanding the Cost of Aircraft

Understanding the cost of using Aviation for Business comes in two forms.  First the opportunity cost of what you can achieve and 2nd, the cost to actually use the aircraft.

Flying in “private” or “general “ aviation aircraft isn’t about owning your own airplane (though that is possible) or about saving money compared to other means of travel, it’s about the time savings, freedom to create your own schedule, and the opportunity to create value by being face to face with whom you need to.

When you own or use an aircraft for business there are two set’s cost’s that go into the “total” cost of operating the aircraft.  Fixed costs; those that you pay even if the aircraft doesn’t fly then there is the Variable cost, the cost associated with the actual operation of the aircraft.

Examples of Fixed cost are:
Purchase or Lease
Hanger
Insurance
Pilots

Examples of Variable costs are:
Gas
oil
maintenance (reserves and actual expenses)

Fixed + Variable = Annual Total Cost

Total Annual Cost/ Total Hours flown = Hourly Operating Cost

Of course if you just “rent” or “charter” an aircraft the flat hourly fee is all you would need to consider.  There are a great deal of operators out there would be happy to quote you that rate.  Please be sure to check a number of operators as the cost can vary widely based on equipment and locations.

 

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