new plane owner wanting to reduce costs right away...

1) Run an evaluator on the plane on Trade-a-plane's or AOPA's website. You
need to know it's value first
2) Find out how much it will cost to store it (hangar or tie-down)
3) Find out how much it will cost to insure it for a year
4) Find out how much it will cost to have all required inspections and
recurring replacements (annual, pitot-static, ELT)
5) Add that up and that will be your Fixed Costs
6) What is the price of fuel at your airport? How many gallons per hour
does your plane burn? Multiply these figures together
7) How many hours does the engine have left before it will require an
overhaul? How much does a newly overhauled engine cost? Take the cost of
the newly overhauled engine and add $3,000.00 to that for removal,
installation, tax and shipping, then divide that figure into the hours
remaining. This will give you the hourly rate for your engine amortization.
8) Figure on 25 to 30 dollars per hour for oil changes, general unforeseen
maintenance and repairs
9) Add up the price for fuel per hour, the general maintenance hourly rate
and the engine amortization hourly rate and that sum will be your Variable
Rate. It will tell you how much it will cost you to fly the plane per hour

10) Based on the fixed costs and hourly rate you can now determine how many
hours per month can afford to fly per month with zero partners
11) If that figure is too low or zero itself, then start dividing the fixed
costs by some number of partners until you reach an amount that leaves you
with enough money to fly the number of hours you deem appropriate to your
flying habit

You should notice that 3 partners is about the limit of effectiveness for
reducing fixed costs. After 3 the fixed costs do not drop much, but the
flying time drops dramatically and maintenance will start to climb.

Lastly, take the value of the plane and divide it by the number of partners.
That is the figure they will have to give you to buy in. That money is
yours. Do not mix it with the funds for the airplane.

Good luck,

Kobra





wrote in message
oups.com...
posted this just now in rec.aviation.piloting, but now thinking this
might have been a better place, apologies for the dup posting

I'm a new plane owner, and in an unusual stroke of luck I own the plane
outright. The problem is that financially I'm not in a position to
maintain it (or own it for that matter...), so I'm looking into various
partnership setups to help offset costs such as fractionals,
co-ownerships and leasebacks.

Thought I'd post "yet another question" about which of these
partnerships might be more viable than the others given my ownership.
most of the reading that I've done thru this group and in various other
articles thru out the web seem to be geared towards a partnership where
the plane is still being paid for by the partners. I'd assume that a
partnership where the plane is already paid for would allow for a more
attractive buy in given the possibility of a lower buy in price to
cover the operating expenses, as well as a lower cost per hour to the
partner.

If I form a partnership where the other partners pay some amount in to
a general fund as the seed money how would my share get paid in? I'm
not interested in putting X grand into the pot since I'm placing the
plane into the partnership with a paid in full status and wanting to
keep my share of the valuation - how would this work?

these questions and more I'm sure, thanks in advance