Disparity of Costs

[JP1]

I notice that 2 Cessna 172's shares are currently available, each one at different airfields but not that far from each other. The groups are similar in size and the value of each a/c is approximately equal, based on number in the group and share price, however the fixed/flying costs seem very different.

Based on 200 hours a year and fuel cost of £45 per hour, then the first group will see an income (less fuel) of £15200.

The second will see an income £6200.

This seems a large difference.

Is one of of those excessively expensive and the other cheap?

I know basing the a/c at different airfields will affect running costs but surely not ~10k


(trying to better understand group ownership!)

[foxmoth]

This certainly sounds a large difference, but assuming that they are proper shares then it might not be too much of a problem as long as you know why, it may be that the expensive group is building up a reserve fund whilst the cheaper group has a reserve already and has not projected need to use it, it could also be that the cheaper group does not worry about a reserve fund which means that if something goes wrong then you would be liable for your shares of the costs. If the group has any liabilities or assets then you have a share in those liabilities or assets and this could account for part of the difference.

[Duchess_Driver]

...will vary depending upon when the aeroplane is based as well as where and how it is maintained.

Each group is different in the way it works....

Some will include an element of engine replacement costs in the hourly charge and others will not (paying for the whole lot as one 'stump up'). If the engine is high time then there is only a few hours in which the cost of replacement can be shared across.

Other groups will share the cost of a 50 or 150 hour check over that number of hours, others will prefer the 'one off payment' method.

Although the groups are both 172's are they both 160's or 180 Horse models.....makes a difference to the consumption figures.

Loads of different ways to skin a cat.....which one suits you?

[Shunter]

Having set up a group myself from scratch, I'd always be suspicious of cheap rates. As the saying goes, if it sounds too good to be true, it usually is.

Our monthlies cover non-hours-related stuff. Hangarage, insurance, annual etc.. Flying time is billed at £30/hr + fuel (as recorded per fuel flow meter). That £30 covers oil, 50hr checks, plus contributions to engine and prop overhaul funds.

Our group is fairly new, just coming up to its 2nd birthday. Most groups will tell you that the first couple of years of ownership are the most expensive. Our first 50hr check cost £4000 and took 3 weeks. We bought the plane, flew her for 3 months, and kept a list of every single niggle we noticed, then did the lot at the first check. Our first annual cost about £8000. We replaced the original exhaust with a Powerflow (yay!), put in some electronic toys, and sorted the rest of the niggles.

By contrast, the last 50hr check cost £120. That covers parts and a bit of labour for our engineers to make sure we'd done everything right. We expect our next annual to be done in a week and be under £1000.

So as you can see, there are plenty of ups and downs. However, not once have we had to put our hands in our pockets to cough up for essential work. We did the research, did the sums, had the money in the bank. It's paid off, big time.

If you want to know why figures differ, ask. Maybe 1 group has a healthy engine fund, whilst the other has a "we'll all get our wallets out as/when required" policy. Personally I feel the latter is asking for trouble, but opinions vary. All I want is for my plane to be airworthy whenever I want to go flying. 99% of the time, it is.

[gasax]

Simple maintenacvce approach has a very large influence.

Do your own 50 hrs - in the example above I would guess that would take the £4k bill down to less than half?


Big difference.

[bingoboy]

Costs could be based on the experiences of groups and in particular the relationship with their maintainer.
One group may have an experienced lead member who manages the relationship with engineers and another may send the aircraft into the workshop on a more ad hoc basis.
Other costs such as hangarage and even insurance can vary widely.