weekendflyer

Greetings everyone,

Seeking some information, I've already delved into leasebacks but would appreciate any up-to-date insights. I'm in the process of acquiring two light sport aircraft, each around 190k, with the intention of leasing them to a busy flight school. These planes, equipped with full glass avionics, are slated to be priced at approximately 160 an hour wet—significantly more economical than the current 172s at the flight school. The goal is to offer competitive rates, facilitating quicker time-building for individuals aiming to accumulate around 1500 hours. Based on my research, the break-even point for these planes would be around 60 hours a month, factoring in maintenance, fuel, insurance, oil, and other expenses. I don't plan to fly these aircraft myself; this is purely a business venture. Any insights or advice on this idea would be greatly appreciated. I plan to meet with a CPA to get a better understanding of the tax implications but if anyone has any advice I'd love to hear it.




Thanks in advance.

Excargodog

I hope they are very STURDY LSAs. Many flight school aircraft get rather rough handling.

METO Guido

Let us know what he says. Depreciation, opportunity cost and liability separation would be my highest hurdles to clear. Family loses a daughter/son in one of them, heavy load to shed regardless the financial involvement.

SonicFlyer

Here are some good videos on the subject:


https://www.youtube.com/watch?v=NlyegS3zins

https://www.youtube.com/watch?v=7KTch0guZF8

https://www.youtube.com/watch?v=BO08LUqchW4

TiredSoul

The sole benefit of buying new is factory warranty.
Make sure it covers commercial operations, you never know with the small print.
Consider selling them when the warranty runs out.
Be exceptionally well protected as far as your other assets. It’s been mentioned above.
If someone dies, even with blatant pilot error the family will sue everyone in sight. The aircraft manufacturer, the avionics manufacturer, the engine manufacturer, the maintenance facility and the owner.
The flight school will prioritize the aircraft use.
Probably theirs first then the lease backs.
$160/hr is also not cheap.
As an asst Chief flight instructor I was part of a small team to test/review a LSA for flightschool use. Apart from a very high time (10,000+) and one very low time (just soloed) pilot everyone would have needed at least one more checkout flight. One heavy footed private pilot got as far as a low altitude spin entry on his first flight.
He would have died had he been alone.
LSA’s are not all baby airplanes.
They’re light, underpowered and jittery.
Some have scary low demonstrated crosswind limitations and at least some time ago the accident statistics were downright scary.