On Fri, 25 May 2007 11:08:26 -0500, Dan Luke wrote:

So I ran a few
numbers to see how buying and renting the same model airplane would
compare, based on costs here in Mobile:

I've a problem with your numbers; I don't see how they can be correct.
It's not any specific number you've described, but the overall sum.
Essentially: how can the two work out to anything but the rental costing
the same or more?

Both aircraft are insured (and, apples to apples, I assume they're insured
identically). Both would have the same hourly into engine/paint/interior
reserves. Both use the same fuel and oil. both get the same annual, etc.

Renter's insurance is an added expense on the rental side, as is funding
the 100 hour inspections.

You're right that the renter avoids financing costs (whether aircraft is
bought for debt or cash). But the owner of the rental presumably knows
this and figures it into the hourly, making the per hour charge for the
rental slightly higher.

What am I missing that would "break" what I've described?

- Andrew