Re: Leasing a new plane
Hmm that sounds a laugh. Hiring a plane but having someone sat in with you!!!!
I hire out my very high end (very expensive) and immaculate IR plane and it has been OK so far but you have to not think too much about it because I would much prefer that it just got flown by me but the VAT and Tax situation and the huge cost of owning this type mean I have to rent it.
I have no doubts that I cannot make a profit even though I am renting the plane for nearly £200 per hour and a monthly fee but I figure that if I get some money towards the annual costs it all helps. I have set up a sort of group with up to five members who have been selected because of their high hours or good flying ratings and have a good management agreement with the flying club that look after and maintain it. None the less due to an engine fault this year that we have no idea how it was caused I managed to make about a £20k loss on the financial year. Including the depreciation which you are obliged to include in your company accounts the total loss was a shade over £45k and I flew 55 hours myself. The plane was out of the air for 4 months for repairs.
The other day I rang to book the plane and someone else had already booked it so I couldnt go where I wanted to. That is the downside but you have to accept that.
Hopefully 2006 will be a happy new year and instead of loads of faults we will have a cheaper year with more renting and then it may be a bit more cost effective but we will see by this time next year.
I hope you can gather from this that I wouldnt recommend airplane ownership and rental by a club as a good business venture. You have to do it for more reasons than that. I am not sure what my other reasons are but I do have them.