Everything You Need to Know About Owning a Plane

Is it your dream to own your own plane? It may not be as out of reach as you might think. Owning a small General Aviation (GA) airplane is actually quite attainable for many people. An entry-level aircraft costs about $30,000 ; less than most luxury cars. Of course, there are other expenses to consider as well, but if you really want to own your own plane, it may just be possible. Read on to learn all the ins and outs of plan ownership.

The Cost of Owning a Plane

The overall cost of purchasing a plane is based on a few factors. Do you buy used or new? Are you purchasing an entry-level Cessna or a top-of-the-line luxury aircraft? The base price for a used, entry-level plane is about $30,000 . If you want to buy new, you are looking at closer to $275,000 and up depending on the model and size.

The cheapest planes to own are ultralight aircraft which seat only on person or a single-engine recreational plane. You can pick one up pretty easily for between $8,000-$15,000 .

. The next cheapest option is single-engine planes. These aircraft have seating for two or more people and are easier to maintain. They cost between $15,000-$100,000 .

. The most expensive personal planes are multi-engine airplanes which go for between $75,000 and $300,000 and even more for large jets and luxury models.

The good news is that most planes appreciate in value, not depreciate, so you are essentially making an investment in a future payoff if you maintain it well and keep it running great. Cessna’s, for example, increase in value at about 5% each year. Then of course for the ultra-rich, there are Airbuses and Boeing private jets which sell for millions and appreciate generously over time.

Along with the initial purchase price comes a slew of other expenses that you need to consider before plunking down a wad of cash for your own personal plane. Things like annual inspections, insurance, the cost of jet fuel, regular maintenance, add-ons, and storage space are some of the things you need to keep on your radar as well.

Inspections

U.S. law requires that all private planes undergo an annual mechanical and electrical inspection which can cost anywhere from $600-$1200 per year . Upon completion of this inspection, you will be furnished with an airworthiness certificate which you must keep in the cockpit of the plane at all times. The inspection must be performed by an A&P-approved licensed aircraft mechanic.

Insurance

Insurance is not one-size-fits-all when it comes to aircraft. Each policy will have different options. For example, you may want to include hull and bodily injury/property damage coverage, which may add to the annual fees. Some of the factors that insurance companies examine when quoting aircraft insurance are operating hours, storage (tie-downs vs. hangar), the make, model and age of the aircraft, the type of coverage you need and the state you live in. Although some people can get away with annual insurance premiums of less than $1,200/year , most will average between $5,000-$10,000 per year for insurance. That is a big chunk of change and not one to be taken lightly when considering the overall cost of owning a plane.

Jet Fuel

Jet fuel costs an average of $40/hr. , depending of course upon the cost of fuel at the time, which can fluctuate throughout the year. This is how it breaks down. Based on 100 hours of flight per year, $40/hr. x 100 hours = $4,000/annual cost . Most small planes will gobble up about 8-20 gallons of fuel per hour at $5/gallon . Don’t forget your oil costs too. You will pay about $2/hr . for oil for an annual expense of at least $200 .

Landing Fees

Landing fees will vary widely per airport, depending on where your travels take you. But you can expect to pay at least $50/year even up to $150/year .

Maintenance Costs

Every single aircraft in the U.S. need to be completely overhauled after about 2,000 hours of flight. They call this Time Between Overhaul (TBO), and since most pilots fly between 100-300 hours per year, they can go years before having to overhaul the entire plane completely. A complete overhaul of the plane, including engines, can cost around $20,000 and up .

However, during the time between overhauls, aircraft owners must keep strict maintenance records and have the entire plane certified each year for airworthiness. Maintenance costs on average can run you between $1,500-$5000 a year .

A thorough annual inspection of your aircraft is required by the Code of Federal Regulations CFR 14, 91.409. If a list of repairs is needed, your plane could be grounded until the maintenance is performed. Always keep a slush fund on hand to handle unexpected repairs like a radio replacement, propeller, avionics or an engine tune-up. The Aircraft Owners and Pilots Association (AOPA) suggests keeping an escrow fund for when you need to overhaul the plane. Put a little away each year then when you need to write the big check, it won’t be so bad.

Storage Space

When purchasing your wings, you need to decide whether you will keep them stored in a hangar or using a tie-down. Generally, you will pay less to store your plane outside rather than inside. Tie-down storage may run you about $50-$100/month whereas hangar storage (if available) will be closer to $275-$1000/month . Some airports charge extra for tie-down gear as well. You just need to factor it all in.

Cost Per Hour

Depending on the age of the plane and how many hours you fly, your average cost per hour could be $200-$300/hr. , which might seem outrageous. However, if you fly more hours (100/year), suddenly that rate can drop to about $20-$30/hour with the only variables being maintenance, landing fees, and fuel costs.

Taxes

One final item we would be remiss without mentioning is the tax impact of owning a plane. The IRS has very specific rules about what may and may not be factored in when it comes to filing taxes and owning a private plane. For complete details on how this works visit the AOPA website: https://www.aopa.org/go-fly/aircraft-and-ownership/buying-an-aircraft/the-pilots-guide-to-taxes