I have a plane that I lease back. I set up a LLC for the plane and I am the sole owner of the LLC. With me being the only owner it goes onto my personal taxes. You get to use the 179 deduction for the cost of the plane. Also you don't have to show a "profit" as you would think. You claim X amount of income (pofit) but then you go down the list of all of your expenses. Many companies "break even". I think the business/hobby think comes into play if you are running it out of your house without a real business. Something like restoring cars or scrap booking, etc... I think you could go forever breaking even as long as you can show and prove that it is a legit business. I would think that if you are claiming some sort of flight instruction business that you would also be able to show your training as an expense.

All of this is just my opinion and you should check with a tax pro that knows this area. I do my own taxes and have had my LLC for 4 years with no problems.