Multi Engine Risk Pool - Input Needed
#11
Gets Weekends Off
Joined APC: Oct 2006
Posts: 650
As a happy leaseback owner of four years, I say do your research and if the numbers work out then go for it. Just leave yourself some sort of margin or exit stratigy in the event things go south. Some other things you haven't mentioned are the tax write off of the plane/business, cost for setting up and maintaining an LLC (which are minimal), money you bring to the plane outside of the flight schools like doing BFRs etc or even your own students. If you are just doing students in the plane and not renting it out then you or a DME should always be in the plane with the student so you can watch over how it is treated. It is a big step but nothing ventured nothing gained. I have often wondered if you could pick up an older turbo prop twin and make any sort of money doing training. For the price of a new piston single you could ALMOST have an older but still reliable KA. I am nowhere near that point though, just a thought.
You may also be able to get the insurance under one of your partner schools umbrella policy, but I have no idea on that one.
You may also be able to get the insurance under one of your partner schools umbrella policy, but I have no idea on that one.
#12
The problem with this scheme is that there is only one airplane. This makes the proposition a crapshoot...surprise mx items may come up, or they may not.
If they don't, the math works. If a biggy pops up you lose out. I have seen this go down both ways.
For something like this to work you really need multiple airplanes so you can amortize the risk of unplanned mx across the fleet.
Of course if your underlying motive is to build twin time vice make money, it might be worth the risk.
If they don't, the math works. If a biggy pops up you lose out. I have seen this go down both ways.
For something like this to work you really need multiple airplanes so you can amortize the risk of unplanned mx across the fleet.
Of course if your underlying motive is to build twin time vice make money, it might be worth the risk.
#13
How much flying are you averaging this plane will do monthy? Moreso, where are you located?
$15K can buy a lot of stocks, 20% down on a house somewhere, or just saved for a rainy day. You need to really think how bad this will affect you personally if you can not pay the note.
$15K can buy a lot of stocks, 20% down on a house somewhere, or just saved for a rainy day. You need to really think how bad this will affect you personally if you can not pay the note.
#14
Not sure how much it'll fly. That is why I am hesitating. I thought about pitching it to the respective flight schools and trying to determine their interest level. I think it'd need to fly at least 10 hours a week to really be viable... but that won't happen in MN in the winter.
But - I can probably also find my own students. There is quite a market out there for guys looking to get from 30 ME to 50 ME...
But - I can probably also find my own students. There is quite a market out there for guys looking to get from 30 ME to 50 ME...
#15
Gets Weekends Off
Joined APC: Feb 2009
Posts: 276
The flight school where I work at had this same idea about the older KingAir. We already have an E-90. Picked up an old '67 A-90. Nice airplane. However, the Chinese airline that is sponsoring all of our Chinese students made us quit using the older KingAir. They require their students to fly turbine equipment that met a certain weight. The old KingAir did not meet that weight, so we ended up getting rid of it. Food for thought unless you only fly domestic students.
#16
Gets Weekends Off
Joined APC: Oct 2006
Posts: 650
The flight school where I work at had this same idea about the older KingAir. We already have an E-90. Picked up an old '67 A-90. Nice airplane. However, the Chinese airline that is sponsoring all of our Chinese students made us quit using the older KingAir. They require their students to fly turbine equipment that met a certain weight. The old KingAir did not meet that weight, so we ended up getting rid of it. Food for thought unless you only fly domestic students.
to the OP,
You could also shop the idea around to the schools you want to work with. Then get a signed letter of intent from those schools and draw up a pretty business plan. Then incoporate the business and go to the bank getting the aircraft loan under the corporation. Then if things go south you can do the American thing and just walk away bankrupting the corporation and saving yourself.
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