Paul Lafata is the owner of AirPower Software Group, which provides products and services, including Aircraft Budget Analyzer, to inform aircraft purchase decisions.
This year’s Operations Planning Guide covers turbine-powered, in-production aircraft. For out-of-production aircraft data consult the Aircraft Budget Analyzer. Aircraft operating costs are presented in a format that separates information into six areas: Direct Mission Costs, Fixed Annual Costs, Variable Costs, Annual Cockpit Subscription Services Costs, Annual Cabin Subscription Services Costs and Annual Trip Support Costs.
Aircraft CategoryAircraft are grouped into six categories reflecting similarity of aircraft size, mission and operations. Category 1 aircraft are turboprops weighing less than 12,500 lb. and very light jets weighing less than 10,000 lb.; Category 2, multi-engine turboprops weighing 12,500 lb. or more and light jets weighing 10,000-19,999 lb.; Category 3, jets weighing 20,000-29,999 lb.; Category 4, jets weighing 30,000-40,999 lb.; Category 5, jets weighing 41,000 lb. and up; and Category 6, ultra-long-range jets with NBAA IFR ranges above 6,000 nm.
Certain data are common to all aircraft in a category for purposes of calculating mission cost by listed range, including airframe systems parts and labor, engine reserves, APU reserves and propeller reserves for turboprop aircraft. Fixed costs, annual cockpit subscription services costs, annual cabin services costs and annual trip support cost figures are provided for reference only and are not included in the Direct Operating Cost (DOC) figure for each of the Mission Ranges (300 nm, 600 nm, 1,000 nm, 3,000 nm, and 6,000 nm).
BCA Equipped PriceThis number is taken from the second-quarter, 2023 Purchase Planning Handbook, and reflects BCA-equipped, completed aircraft. The listed price is based on the latest model produced.
Direct Mission CostsMission Costs are calculated based on the business aircraft missions shown in BCA’s second-quarter 2023 Purchase Planning Handbook. Three missions are shown for each aircraft: 300 nm, 600 nm and 1,000 nm. Ultra-long-range aircraft (Category 6) missions are 1,000 nm, 3,000 nm and 6,000 nm. The fuel expense for each mission is based on the fuel-burn figure for the mission, provided by the OEM, and calculated under conditions shown in the Handbook.
Missions are calculated utilizing manufacturer’s recommended cruise setting; therefore, cruise settings may vary from aircraft to aircraft, (i.e., max cruise versus long-range). Where the aircraft cannot cover the mission distance with an 800-lb. (four-passenger) payload, BCA shows a reduction in payload or a reduction in mission length at the Editor’s option.
Direct Mission Costs include a bundling of mission fuel consumed from BCA’s Purchase Planning Handbook (LINK), maintenance labor, parts, and reserve costs from the Variable Costs section of this guide, apportioned to the actual flight time for the listed nautical mile mission length. Fuel price used is based on a nationwide average price of $6.07 per gallon for Jet-A at press time.
Fuel consumption calculations account for taxi, takeoff, climb, cruise, descent, and landing for the applicable mission as appropriate for the aircraft category. (Note: Longer missions will lower average hourly fuel burns due to more time in cruise; conversely, shorter missions will increase average hourly fuel-burn figures since proportionally more time is spent in the takeoff and climb phase rather than cruise.)
Fixed Costs (Annual)This area of expense includes those costs that must be borne by the flight department irrespective of the level of aircraft utilization. The years 2021-23 have been a transitional period, particularly for flight department salaries and the impact of COVID-19 economic shutdown followed by renewed emphasis on private aviation over the last 24 months. Airline demand for qualified pilots is robust, as passenger loads exceed pre-COVID-19 levels. Salary surveys published last year quickly became obsolete as flight department staffing plans regain momentum. The year 2023 is shaping up as a combination of somewhat softer economic news and higher inflation as demand and supply shifts towards hiring of qualified flight crew in the airline and corporate segments. Most corporate operators are facing tough competition for qualified crews. Compensation adjustments, including longer-term incentives, continue escalating to discourage private aviation pilots from migrating to airlines or other opportunities.
SalariesIncluded are salaries for Flight Crew, Cabin Crew and Director of Maintenance where appropriate. For this year, Sheryl Barden, CEO at Aviation Personnel International said, “we continue to see robust flight operations with a one-two punch of additional emphasis on hiring typed and current flight crew members to meet increased mission needs and increasing staffing levels to even out crew workloads.”
The “aircraft management company sector and flight crew training companies are facing the same pressures on hiring and crew salaries,” said Barden. Fractional and Charter Operators are also in the hiring mode as demand for their services has increased over the last 12 months, with some notable demand softening in the charter segment. Airlines are “actively hiring, using creative means to fill positions,” she said. Barden further stated that “airlines are recruiting and negotiating higher salaries, which is attracting pilots out of the business aviation market. “
Barden discussed additional shifts in the crew-hiring landscape as follows: “Hiring tactically instead of strategically has resulted in hiring people who can be brought up to the corporate flight department standards is becoming more predominant in the flight crew landscape.” The pilot shortage remains significant, said Barden. Additionally, “the contract crew market is very lucrative, she added.”
Barden further stated that “Business aviation flight departments are staffing at higher numbers to accommodate more frequent flying and improved work-life balance. COVID-19 concerns are significantly diminished.” Barden also noted: “Corporate flight department crew retention remains key as the economy continues to open up. Salary adjustments for 2023 resumed their upward trajectory this year, in anticipation of having to make significant operational adjustments in the next year or two.
Salary increases for flight departments in 2023 have not yet normalized as predicted last year. Overall, business flying has been impacted by qualified crew supply and increased hiring competition. There is no one-size-fits-all formula that can be applied to define current conditions.”
Barden emphasized that retention strategies including “bonuses, restricted stock, retention bonuses, work-life balance adjustments, and general working conditions in flight departments, large or small, play key roles in mitigating personnel churn and attracting talent when needed.”
Maintenance professionals also are in short supply with “retirement becoming a factor to consider with salaries rising to retain and attract new talent. Directors of maintenance play a crucial role and can have a direct impact on airframe resale value by ensuring a high degree of aircraft maintenance and repair status along and associated documentation.” Barden added that Cabin Crew salaries have also risen more than previous years as emphasis on qualified talent is in high demand.”
Christopher M. Broyhill, CEO at AirComp Calculator, reviewed data from multiple surveys across 14 positions and concluded
“an average increase in compensation of 5.15% from 2021-22 (the most current data available at this printing). This figure corresponds to data from the U.S. Bureau of Labor Statistics that shows growth in private industry compensation at 5.1% over the same period. But a review of the figure above shows that the current compensation market is very dynamic. Cost of labor (Private Industry Compensation) and business aviation compensation lags the cost of living (Consumer Price Index) and while the rate of increase for wages in the general economy are rising, the rate of increase for wages in business aviation fell by one percent in the last 12 months. “
In addition, he said pilot salaries for long-range jets such as the Gulfstream G550 and Dassault Falcon 7X can be in the $300,000 range, which is higher than in previous years. “That, combined that with the new airline contracts, specifically at Delta Air Lines, which includes a 34% increase over previous levels of pilot compensation, creates a dynamic compensation environment indeed. And it is obvious that the current compensation data is lagging the market,” said Broyhill.
“While paying at the 50th percentile or using a lead-lag modality centered on the 50th percentile used to be an accepted strategy, business aviation operators are now regularly targeting the 75th percentile to ensure they stay ahead of the market,” he said. Operators still targeting the 50th percentile face retention risks, he said.
Flight Crew TrainingCrew training is a substantial constraint as the available supply of qualified employees remains very tight, as pilot slots can now extend out two years. This is putting extreme pressure on flight departments to find already-qualified flight crew members. Expenses shown are based on average transaction costs for representative aircraft models. Actual expenses can vary due to market capacity fluctuations, changes in training locations, and other factors such as training volume and length of commitment.
The training expenses shown are based on average transaction costs for representative aircraft models, or OEM contracted rates. Actual expenses can vary due to market capacity fluctuations, changes in training locations, and other factors such as training volume and length of commitment.
Cabin Crew TrainingThese expenses are provided as budgetary planning numbers only.
Maintenance TrainingThis estimated cost is per technician and includes initial maintenance training on an aircraft model. Data reflected here was initially compiled by ARGUS.
Hull and Liability InsuranceAircraft hull and liability (and all aviation insurance in general) premiums remain in the crosshairs since last year’s Operations Planning Guide publication, particularly for single- pilot, owner-flown, high-asset-value aircraft. Annual premium increases have slowed from the 35%+ seen two to three years ago, to a more sustainable single-digit and low double-digit upward pace as noted by Tom Hauge, national sales director at Wings Aviation Insurance. However, the hot button topic noted by Hauge remains “escalating airframe values over the last year, and low inventory availability for sale. Naturally, aircraft owners and buyers alike are adjusting to upward pressure on airframe valuations, changes in insured values, and the attendant impact on premiums.”
Hauge and the aircraft insurance industry are closely watching war risk and confiscation of commercial aircraft related to the Ukraine/Russia conflict, with the potential to impact aviation insurers as one of the largest loss events in aviation insurance history. Hauge said “Airliner confiscation could be a driving factor, and the future impact on insurers is to be determined as insurance companies are in a wait-and- see mode to see how this issue works out.” Hauge points out that “the aviation insurance industry is one massive risk and financial pool. Everyone paying aircraft insurance premiums will be impacted if the pool is drained by war-risk coverage losses due to confiscated aircraft.”
Therefore, market forces will continue to impact premiums, including global catastrophic property/casualty loss events, aviation losses in the sector (aircraft hull and liability claims), cost of repairs and loss of underwriting facilities over the last several years, and limited competition and reduced capacity. All these factors have made the smaller market space restrictive on high hull and liability limit aircraft, along with continuing to drive tighter requirements on pilot qualifications.
There is, however, some additional capacity in the U.S. aviation insurance market, with two “new” carriers entering the hull and liability space as of fourth-quarter 2022--with a third targeting to start underwriting later in 2023. This additional market capacity should help soften the sub-$5 million hull value aircraft premiums (owner-flown and professionally flown). However, the underwriting space in the U.S. remains at only 7-8 insurance carriers for mid-size and large-cabin aircraft.
Hull and liability rates reflected in the guide are established based on key experience and type-specific training as noted below. Actual premiums can vary significantly from those noted in 2022 and beyond. Hauge shared additional guidance for this year’s guide. “My job as an insurance broker is akin to that of a salesman. I work to position the buyer in the best possible light to the underwriter. The level of thoroughness and detail on a particular risk achieved through interviews with my clients can directly correlate to the quality of the market results. Come prepared to give your broker all the information needed to put you in front of an underwriter.” Your broker will specifically ask about your:
Pilot experience (the more detail provided, the better). Pilots without prior make/model experience, adequate turbine time as PIC, and prior overall experience can dramatically impact the overall total annual premiums. Premium variation can be 100% higher or more from previous years depending on the experience metrics noted.
Planned utilization for the aircraft, including estimated annual flight hours, territory you plan to operate in and how you will use the aircraft.
Detailed training plan (if you are transitioning to a higher-performance aircraft or turbine transition, this area is particularly important to define).
Your broker will also dig into your aircraft use case, including:
Where you fly and how often.
‘Owner’-flown versus professionally crewed aircraft--there is a significant difference in risk between the two designations.
Size of the aircraft make/model pool and overall safety record--i.e., an experimental turbine aircraft with limited numbers in service will have a vastly different insurance market acceptance versus a legacy OEM production aircraft with 100s or 1000s of the models insured worldwide.
How many times a year do you utilize the aircraft/flight hours estimated per annum?
Expectations on liability coverages / any third-party passenger exposure (how many and how frequent?).
Where the aircraft is based and how it is secured when not flying (tied outside versus hangered).
Number of underwriting companies willing to write coverage for a specific aircraft type and planned crew operation.
Hauge advises: “When you get down to the last step of selecting one insurance policy over another, choose the proper policy for broadness of coverage, liability limit needs, checkout or transition pilot requirements, and finally pricing.” Other considerations include: “Do you plan to dry-lease time in the aircraft to a third party? Does the policy cover this use? Can dry leasing be added to the policy / if so, at what additional cost? We have seen several insurers prohibit third-party dry leasing – others that may permit dry leasing to third parties typically cap the number of leases that may be added to the policy and will surcharge the leases at a flat, fully earned premium per lease.
What minimum experience requirements do your pilots need to have to be approved by the policy underwriting company or what might be the requirements/minimum experience threshold to add additional pilots? Do all of your pilots currently hold these qualifications and experience, and if not, what will be required to have them approved by the insurance underwriting company?” Also, as of recently, some insurers will mandate simulator-based training for the pilots, some allow training to be completed in-aircraft, so this topic should be addressed with your broker when reviewing insurance quotes from various underwriting carriers.
These are just examples to consider, said Hauge. “When you review your policy choices, make sure all your missions/usage, pilots, etc. are covered. Without this knowledge, you could find yourself in an uncovered situation, responsible for a multitude of damages. With the right broker by your side, and the proper information, timing, and knowledge about your policy, you can smoothly navigate the aviation insurance purchasing process and gain a policy that best fits your needs.” Insurance estimates are based on the aircraft flown by professional, simulator-trained flight crews or well-qualified pilots with sufficient PIC (pilot-in-command) time in type particularly for the owner-flown, single-pilot-class platforms. In other words, the best- case scenario as opposed to minimum qualification scenarios.”
Hull Insurance per $100This is the factor used as a multiplier to arrive at the total annual cost of hull insurance for a particular aircraft. It is derived from actual aviation insurers’ quotes. Insurance quotes can vary depending upon if the aircraft is covered under a fleet policy or a standalone policy. The first number reported is the estimated annual cost of hull insurance for a particular aircraft based on its BCA-equipped price as reported in BCA’s second-quarter Purchase Planning Handbook. The cost is computed by multiplying the cost per $100 of hull insurance factor by the BCA equipped aircraft price. The figure includes war-risk coverage, which constitutes on average $0.03 to $0.05 per $100 of hull insurance (this figure is increasing in 2023--war risk--as noted earlier).
Liability InsuranceThis figure represents the total annual cost for liability insurance for an aircraft model. Aircraft in Categories 1 and 2 are assumed to carry $5 million in liability insurance; Category 3 aircraft carry $100 million; and Categories 4-6 carry $200-500 million in liability insurance coverage, depending on make and model. The annual cost is computed by multiplying the amount of liability coverage in millions by a per $ million factor supplied by a leading provider of this type of insurance coverage.
Maintenance SoftwareThe figure shown for maintenance software programs represents the average annual cost for a software program to track maintenance activities, intervals and expenses. This number represents an average cost and should be utilized as a budgetary planning estimate.
Hangar/Office FacilitiesExpenses shown here are based on national average annual costs reported by flight departments in 2017 and escalated for 2023 based on the annual rate of expected inflation. The figures shown in each cost area are broken down by the six aircraft categories and will generally be the same for all aircraft included in the same category. This figure is an annual cost per aircraft and includes hangar and office rent as well as additional facilities costs such as utilities, ground upkeep, snow removal, janitorial service and insurance (other than aircraft insurance).
For more than one aircraft, it is valid to multiply the figure by the number of aircraft to arrive at a total flight department cost. Actual rental costs will vary widely from one geographical area to another.
Variable Costs (Per Flight Hour)These expenses are directly related to the operation of the aircraft and are represented as an hourly cost figure. Included are maintenance labor expense, parts expense, plus engine, APU, avionics and propeller reserve expenses as appropriate. For in-production aircraft it is assumed the aircraft is covered by the manufacturer’s warranty. The figures shown are based on aircraft OEM direct estimates with warranty effect incorporated unless otherwise noted by an (*). For OEMs that did not participate this year, an inflation escalation was added to the most current available data.
Service center maintenance labor expense is computed by multiplying the maintenance man-hours per flight hour ratio by the nationwide average service center hourly maintenance labor cost (Category 1: $126/hr.; Category 2: $126/hr.; Category 3: @131/hr.; Category 4: $137/hr.; Category 5: $147/hr.; Category 6: $147/hr.). Labor expenses for each category noted here were used in the preparation of in-production aircraft maintenance labor costs per flight hour.
Airframe Systems Parts and LaborThis figure is a model-specific hourly expense with warranty considered. It should be noted that warranty periods and coverage vary from OEM to OEM and are not specifically defined in this description. Contact the OEM for policies related to new aircraft warranty and pre-owned aircraft within the warranty period for transfers related to the airframe, engines, APUs and avionics. The following descriptions define how maintenance man-hours and parts expense were calculated into mission costs:
Maintenance Labor Hours/Flight Hour (in-production aircraft)An aircraft manufacturer-supplied ratio of maintenance man-hours per flight hour. The number reflects an average for the first five years of operation while under warranty, including scheduled maintenance and unscheduled maintenance events. Maintenance man-hours per flight hour are multiplied by corresponding labor rate, by aircraft category and incorporated into the airframe systems parts and labor variable cost figure line item.
Parts Expense (In-production aircraft)This hourly expense is derived from model-specific manufacturer’s quotes and included parts expense for airframe systems. In-production aircraft parts expense provided by the OEM have the warranty taken into consideration. It should be noted some warranty periods covered timeframes of less than 5 years but are not specifically mentioned in the guide. Airframe systems parts calculations assume unscheduled maintenance events would be covered by warranty and does not include reserves for engine or APU overhauls, hot sections, long-range maintenance events, or propeller reserves. Those items are listed separately in the variable cost section. Avionics repair costs during the warranty period would also be covered by the OEM warranty and therefore no reserve costs are shown for Categories 1-6 platforms. Regulatory mandates should be separately budgeted for when evaluating operating costs for each aircraft.
Engine Reserves and APU Reserves (where applicable)These expenses are based on OEM input for in-production aircraft where provided. Engine and APU OEMs and third- party service providers offer programs designed to fix or cover operator’s scheduled and unscheduled maintenance requirements on a per-hour, fee-paid basis. Engine and/or APU loaners may not be covered by these programs for unscheduled events, resulting in significant out-of-service time for the aircraft. Consult policy terms and conditions or the service provider for specifics.
Avionics ReservesFor in-production aircraft, avionics reserves for categories 1-6 are assumed not to be applicable due to OEM warranty coverage during the first 5 years of operation following entry into service. Additionally, upgrades to cover regulatory mandates are not factored into hourly operating costs.
Propeller Reserves (where applicable)These expenses are based on OEM input for in-production turboprop aircraft.
Annual Cockpit Subscription CostsThese are expenses related to cockpit navigation equipment database updates, safety services associated with flight planning, and other services associated with flight operations. These services are typically purchased through the OEM in the case of FMS and GPS navigators or ground-proximity system databases, and service providers for data link, flight planning, charts and graphs and digital weather-related products. Information in this section is dependent on the cockpit avionics configuration and pricing offered at the time of aircraft delivery, or as contracted with a cockpit services provider. Procurement of subscription services from a provider that offers training support on use of products as well as troubleshooting, system configurations on-wing and satellite communication link setup for service delivery where needed are highly desirable support elements. Typical subscription costs, which vary depending on mission needs, are reflected in this section. However, annual aircraft utilization and bundling of other services may reduce these expenses.
Navigation and EGPWS/TAWS DatabasesAnnual subscription prices are derived from OEM data sources or estimated where OEMs do not publish publicly available pricing, and therefore should be viewed as directionally correct for budgetary planning purposes. Navigation database prices do not include optional bundled or enhanced feature pricing unless specifically noted. For example, navigation database, plus terrain, traffic or other charts and maps can be covered in a one-time renewal, or annual subscription price depending on the avionics manufacturer. The aircraft or database supplier should be consulted for price quotes. Expenses shown vary depending on cockpit avionics equipment configurations and are approximated averages for in-production aircraft.
Annual Cabin Services CostsCabin services costs assume the aircraft is optioned with appropriate equipment at time of delivery from the factory. Aircraft Budget Analyzer provided budgetary planning numbers for Swift Broadband (SBB), KA/KU, SatTV, and Cabin Iridium services. Estimated air to ground service costs are derived from published pricing, where available. Cabin services except for air-to-ground and cabin / Iridium phone are applicable to aircraft categories 4-6 due to suitable empennage and or vertical stabilizer antenna / radome solutions and suitable space for installation. Cabin services costs are for activation, on-wing field labor support, aircraft crew training expense, or ongoing technical support associated with troubleshooting complex satellite communications equipment and networks that is not included. Many service providers offer a continuum of support services and should be contacted directly for information related to ongoing support and service activation.
Annual Trip Support CostsAnnual trip support expenses are similar for all aircraft in a particular category, reflecting comparable aircraft capabilities and mission utilization. Trip expenses includes catering service, flight crew travel, international trip support, concierge service, ground handling and landing/parking fees. Fees reflected are annual numbers assigned to specific aircraft categories. For aircraft in categories 5-6, 400 annual flight-hour utilization rates were used to arrive at budgetary planning estimates. For categories 1-4, 250 annual flight-hour utilization rates were used. Mission durations vary, which resulted in a change in the way these costs were calculated for the 2023 Operations Planning Guide. Many operators elect to use a service provider in the case of concierge and international trip support due to complexities associated with overflight and landing permitting and other logistical arrangements. International trip support and concierge was not factored in for aircraft in categories 1 – 4 unless otherwise noted, or if the aircraft had sufficient NBAA IFR range to justify a budgetary planning estimate.
Operations Planning (Aircraft Acquisition)Selecting a new or replacement airplane can be a complex, daunting task, particularly for first-time buyers and those upgrading to a new platform. Acquisition planning involves a thorough operational needs review to ensure the right aircraft for your unique mission needs is purchased.
Due DiligenceDon’t skimp on due diligence to close an aircraft purchase. “Confirm the physical condition and title of the aircraft,” cautions Michelle Wade, managing partner at Jetstream Aviation Law. “Perform due diligence on other parties in the transaction to confirm you are not buying an aircraft from a sanctioned party or an entity whose ultimate beneficial owner is a sanctioned party and to confirm to whom payments are being made. With the U.S. government’s recent focus to ensure that general aviation aircraft are following export processes, due diligence also includes confirming the export/import status of the aircraft.”
Team PlanningWade shared essential advice: “Assemble a team of subject-matter experts, including technical, operations, tax, legal, staffing and general consulting expertise in addition to the owner’s in-house business team. Using a robust team to create a complete acquisition plan that considers mission needs, utilization plans, business goals, tax laws, and FAA regulations can avoid future problems.” Wade emphasized allowing sufficient time to accomplish all tasks associated with the acquisition, and to “start your planning early, allowing sufficient time to research questions arising from unique business needs.”
When asked for additional clarification, Wade advised: “Well-defined utilization information narrows the list of aircraft to consider, narrows the list of significant tax issues to address, and helps identify how FAA regulations will affect ownership and operation of new aircraft.” The answers to these questions will help clarify the intended utilization of the aircraft:
Will flights be primarily for business use, with limited personal flights?
Will flights be predominately personal flights?
Does the owner expect anyone to pay for their flights on the aircraft?
Will a professional aircraft management company be hired?
Will the aircraft be leased to a charter company to provide charter flights to the owner, friends or third parties?
Tax GoalsWade emphasized that missteps with taxes, including federal and state, can be costly. Consider whether to take a tax deduction for bonus depreciation. “Bonus depreciation may allow the owner to deduct a significant percentage of the purchase price on the owner’s tax return in the year of purchase; however, it is important to understand the impact of IRS bonus depreciation regulations on the planned flight operations,” she said.
Wade further stated that: “Significant flight hours for personal use, or business flights that also carry passengers traveling for non-business purposes, may negatively affect an anticipated bonus depreciation deduction. Planning with the entire team to address how to best satisfy tax goals and business goals while complying with FAA regulations can avoid unpleasant eleventh-hour surprises. State sales and use tax, state property tax and the availability of any exemptions should be considered” because they will affect ownership planning and aircraft operations. “Each aircraft owner has a unique business structure, unique tax goals and unique business goals. There is no ‘one-size-fits-all’ tax plan when buying a new aircraft. Early discussion of the planned operations and desired tax benefits will allow the team to identify and address any potential conflicts between business plans, tax laws and the FAA regulations,” she said.
FinancingBegin seeking lenders and getting quotes “at least several months before funds are needed. It takes time to provide the required due diligence to the selected lender, obtain loan approval, review the loan documentation and negotiate important business points into the loan documents while ensuring a smooth closing,” advised Wade.
Home Base LogisticsDepending on where the aircraft will be geographically based, this planning element is critical to ensure an expensive asset is not parked on the ramp, unprotected. Wade further advised: “The aircraft acquisition team should also identify the resources needed to support the new aircraft.
Where will the aircraft be hangered? This decision is affected by identifying a convenient departure airport for most flights, hangar space availability and state tax laws.
How will the aircraft be staffed?
How many pilots will the owner employ? Will any contract crew be utilized?
Will a maintenance technician or a flight attendant be employed?
What maintenance/service programs will be utilized?
What insurance coverages will be obtained?”
Purchase AgreementFor new aircraft purchases, manufacturers will provide the sales agreement. Some terms are not negotiable, but Wade advises some can be revised. Consider:
Consider the pre-purchase inspection and delivery process to ensure that it meets the buyer’s expectations.
Consider addressing what closing documentation the buyer will receive from the manufacturer at delivery time.
Consider addressing the closing procedure in more detail.
Do you have any specific delivery conditions to include for your aircraft?
“Planning for the delivery when negotiating the purchase agreement can create an easier closing experience,” she said.
GeneralAbbreviations and annotations are used throughout the tables: “NA” means not available or Not Applicable to a particular aircraft model. An asterisk in brackets (*) in the Model Column indicates data was not available from the OEM or other sources, and operating costs were estimated. Single-Pilot (SP) certified aircraft will not include a salary for the Captain or Copilot in the Guide Tables, and assumes the aircraft is owner-flown unless otherwise noted due to insurance requirements or typical mission usage; “NP” signifies that the specific performance is not possible; “OC” means On Condition; and “INCL” indicates a particular cost item is combined with another specifically noted item.
Cirrus Aircraft offers an all-inclusive operating cost per flight-hour product that includes recurrent training, all scheduled and unscheduled maintenance, all subscriptions and more. Variable costs are broken out only for the purposes of calculating direct mission costs for each of the predefined ranges.
