Aircraft Ownership vs Leasing
Compare the costs, benefits, and limitations of owning versus leasing an aircraft.
Executive Summary
Own if: You fly 100+ hours annually, want flexibility, plan long-term, or need specific equipment.
Lease if: You're learning, fly occasionally (under 100 hrs/yr), want predictable costs, or need newest aircraft.
Cost Comparison
| Expense | Ownership | Leasing |
|---|---|---|
| Loan Payment | $1,200-$2,000/mo | $0 |
| Fuel (100 hrs/yr) | $2,400/yr | $2,400/yr |
| Maintenance | $7,000-$14,000/yr | $0 (included) |
| Insurance | $1,600-$3,000/yr | $0 (included) |
| Hangar | $500-$800/mo | $0 (included) |
| Engine Reserve | $2,000-$4,000/yr | $0 |
| TOTAL ANNUAL | $28,000-$42,000 | $2,400 |
Ownership Benefits & Drawbacks
✓ Advantages
- Flexibility: Fly anytime, anywhere
- Customization: Equip as you wish
- Predictability: Same aircraft always
- Equity: Build aircraft value
- Business use: Deductible if business use
✗ Disadvantages
- High fixed costs: Payment even if not flying
- Maintenance burden: You pay for repairs
- Downtime: Maintenance grounding
- Depreciation risk: Value may drop
- Resale hassle: Finding buyer takes time
Leasing Benefits & Drawbacks
✓ Advantages
- Low fixed costs: No payment if not flying
- No surprises: Maintenance included
- Modern aircraft: Newest technology
- Flexibility: Choose aircraft by mission
- No downtime: Replacement aircraft available
✗ Disadvantages
- High hourly cost: $200-$400/hr
- Limited availability: Scheduled out
- Restrictions: Can't customize
- Minimum hours: Monthly commitments
- No equity: Building no ownership value
Break-Even Analysis
At what point does ownership become cheaper than leasing?
Ownership annual cost: $35,000
Lease hourly rate: $250/hour
Break-even: 35,000 ÷ 250 = 140 hours/year
Ownership wins when flying 140+ hours annually
Decision Framework
Choose OWNERSHIP if:
- ✓ Flying 150+ hours annually
- ✓ Long-term aviation commitment (5+ years)
- ✓ Need specific equipment or customization
- ✓ Want to build equity
- ✓ Can afford $3,000-$3,500/month in fixed costs
Choose LEASING if:
- ✓ Flying under 100 hours annually
- ✓ Just starting out or still learning
- ✓ Want to minimize fixed costs
- ✓ Prefer newest aircraft
- ✓ Need flexibility in aircraft selection
Ready to Own Your Aircraft?
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