Colorado Airpark Residents: What is the Real Cost of Owning and Operating a Jet Where You Live?
When You Finally Purchases Your First Jet
CO – Sometimes, success can be defined by eventually owning a jet and living in a Colorado fly-in community. With unmatched convenience, cost efficiency, and visible prestige, when a Colorado airpark resident finally purchases that first jet, the feeling can be a great accomplishment. Here, we will focus on jet-powered aircraft, as they offer, in most cases, the best passenger comfort, the greatest range, and the fastest inflight speeds. However, for those on a more restrictive budget, a turboprop or reciprocating engine-powered aircraft may be the best match.
Turboprop or Reciprocating Engine Powered Aircraft
Private jet ownership is comprised of initial purchase expenses and then the longer-term operating costs that ensure a safe and reliable airplane. As a note of caution, it is essential to remember that an airplane typically depreciates over time. This consideration should be factored into the overall cost analysis. On the low end, a smaller, less expensive turboprop or reciprocating engine-powered aircraft can often be acquired for somewhere in the $2 million range, while a larger, more mission-capable, mid-sized corporate-class jet can easily run into the 30 million dollar range or more.
Many Factors Affect Depreciation
Also, while many factors affect aircraft depreciation, the average Colorado airpark-based jet can be expected to incur a depreciation of around 25% after about five years of ownership. Regarding operating costs, the smaller turboprop or reciprocating engine aircraft may be expected to set back an owner about $150,000 per year or more. Conversely, those operating a bigger private jet would expect to spend, all said, easily around $1 million per year or more in fully maintaining their treasured airplane.
The Number of Hours That an Aircraft is Operated
Note that many aircraft variations fit between these two examples, so expect costs to be very fluid in this regard, depending on the aircraft. The number of hours that an airplane is operated also plays into cost analysis. For example, a typical fly-in community airplane owner will utilize a plane for around 200 hours annually. Flying less than that or more will obviously change the cost metrics. Other fixed costs include maintenance and repairs, insurance, regulatory compliance, and equipment upgrades.
For Those Wishing to Take Flight Quickly
Anyone who is preparing to wade into the world of jet ownership must also decide upon a new aircraft as opposed to a pre-owned one. Not surprisingly, today, there is an ongoing backlog for new business-class jets, as is true with commercial airliners. This means buyers can expect to pay a premium for a new aircraft and should be prepared to wait a considerable amount of time for delivery. That is why a pre-owned airplane may indeed be the best option for those wishing to take flight quickly and to do so more affordably.
Drafting Contracts and Reviewing Applicable Laws
Along with the initial sticker shock of a big-ticket item purchase price, there are several other additional costs associated with owning and operating a private aircraft. For example, legal fees can add up quickly when an individual decides to buy an aircraft. Aviation attorneys are needed for the initial acquisition, drafting contracts, and reviewing applicable laws. Solid legal representation through all phases of aircraft acquisition and ownership makes smart financial sense.
Maintenance Records and Airworthiness Certificate
Then there is the pre-purchase inspection. As is the case with buying a boat, it is essential to have a Colorado aviation expert thoroughly inspect the aircraft. This review includes examining maintenance records, the airworthiness certificate, and general overall condition. Equally important is the aircraft appraisal. A professional aircraft appraiser will assess the aircraft and determine its fair market value. The cost of both the inspection and appraisal can vary significantly, so it’s best to check with your local providers.
Hiring a Tax Professional
Tax implications are also vital to review. This is another case where hiring a tax professional or lawyer is money well spent. In addition, escrow services and the associated fees should be considered. Insurance costs for both the pre-purchase and post-purchase phases of aircraft acquisition also play into the total cost of ownership. Finally, if a buyer plans to finance the purchase of an aircraft, these expenses must also be factored into ownership.
How Many Hours Per Year the Aircraft is Operated
Once the actual aircraft acquisition is complete, there are many ongoing fixed and variable expenses to manage. These costs will be determined by how many hours per year the aircraft is operated. Fixed expenses that are part of ownership, regardless of whether the aircraft is being flown or not, include hangar, finance, and insurance costs. Variable costs are associated with when the aircraft is being flown.
The Overall Coast of Ownership
Variable aircraft operating expenses include landing fees, fuel costs, maintenance servicing, and repairs. Maintenance and repairs, as well as equipment upgrades, must be accounted for in terms of the overall cost of ownership. Jets require regular upkeep and maintenance to ensure airworthiness and safety. Some airplane owners choose to keep their aircraft on a regular contracted maintenance schedule, helping to better manage costs.
When an Aircraft of Professional Managed
Private jet management services are becoming increasingly popular among today’s decerning aircraft owners. This option lessens the burden of maintaining an aircraft. A management service will look after a private jet and ensure its long-term integrity. They keep maintenance up to date and store the aircraft, keeping it safe and secure from weather, vandalism, and theft. When an aircraft is professionally managed, it’s always ready to fly on a moment’s notice. This may be a good option even for those who hangar their airplane where they live, as is the case within an airpark.
Pilots Need the Latest Navigation Information
As an added note, just as some corporate flight departments choose to lease out their aircraft for charters, private owners may have the same option. This is an excellent way to offset the cost of ownership. Other costs associated with aircraft ownership include cleaning costs, unexpected repairs, parking fees, and de-icing. In addition, there are flight planning and weather services that incur a cost each time the aircraft takes flight. Pilots need the latest navigation information, usually digital, requiring an annual membership with a company like Jeppesen.
The Thrill of Flying
Whether in a corporate flight department environment or living in a Colorado airpark, buying an airplane can be a very rewarding experience. Take the time to get it right when making such a substantial purchase. At the end of the day, the thrill of flying and all the conveniences and satisfaction that it offers are more within reach today than they have ever been. Noting quite compares to parking your jet where you live. Happy Landings!
Visit APN (Aviation Property Network) today to find your next Colorado airpark home and hangar.
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