To buy or not to buy an aircraft ? Seeking information.

[Bell Man]

G'day all,
I'm thinking about purchasing an aircraft, to use privately, and also on a commercial basis maybe later down the track if things go ok. I'm an ATPL holder with 5000+ hours, and basicly can't get a flying job, paying the money that I'm getting now as a aircraft engineer. I also have the requirement to travel interstate at least once a month for personal reasons. I figure that I could do at least 150 hours a year.

I already know the pitfalls in aircraft ownership in regards to maintenance and operational matters, but what about the financial pros and cons, ie taxation advantages/disadvantages, the need to form a company etc ? Maybe forming or going into a share type of a arrangement with someone else who is suitable, ie, an experienced commercial pilot.

I have hired aircraft from various operators around the traps in the past, and most of these machines are pritty rough around the edges to say the last, let alone expensive. Not to mention about having to go through all the hoops to get checked out by some instructor who has NFI, at my expense, then to have the aircraft go U/S in some remote location.

Any information would be much appreciated.

[Blue Sky Baron]

Just to save Gaunty the effort, I'll tell you what he would say, and believe me he is ALWAYS right. :p

"Take a couple of Bex and have a long lie down until this urge to own an aircraft goes away!" :D

Unless you have unlimited funds that you have no other purpose for don't even consider it.
If you really want to own an aircraft go right ahead, BUT don't try to justify it financially because you can't do it, trust me, I've had a few and they all cost big bucks.

The only advantage for you is you could probably maintain it in a proper fashion yourself which will be to your advantage as I've found that finding a competant LAME who CARES is extremely difficult. I've got one now and I aint lettin' him get away.

If you want to discuss anything else feel free to PM me.

BSB ;)

[Rich-Fine-Green]

Bell Man;

If you do go ahead with getting an aircraft, unless you have ample funds behind you, just try buying into a share of a good aircraft.

Less risky if you're only doing 150 hours per year.

There are some well run syndicates around the country, however, I'm not sure about any in Tassie.

If you buy a share from an owner or buy into or form a new syndicate make sure that you have a really well written share agreement. You will need it if there is a split, death, divorce, broken crankcase etc etc etc.

Good Luck, have fun, be safe.

[cyclops camel]

I want to hear from Nasa!

:D :D

[Planned Root]

What are you thinking of buying?

[mustafagander]

Bell Man,

I think you are ignoring rule 1 :-

If it flies, floats or f##ks, never buy it, rent it. ;)

[hurlingham]

There is only one way to make a small fortune owning an aircraft,

START WITH A BIG ONE.

[nasa]

That's the bottom line.....I'm surprised that so many people who depend upon aircraft flying for their livelyhood are so dead set against people buying/owning aircraft.....Then again, maybe those that are quick to condem are not reliant upon aircraft flying :eek: :eek:

Yes there are pitfalls and complications, but like any business in life, do it properly and it can be rewarding, both financially and personally.

Oh, and of course, Heaps of Bloody Luck :D :D :D

[I Fly]

I own my aircraft through a company. Sold one recently and the Capital Gain was assessed as income. If I'd owned it personally I would have received a 50% CGT discount. And if you retire when you sell it you get another 50%. Check that out with your Accountant.

[Bell Man]

Thanks for all the replies. I think I have made my mind up not to buy a machine. (Untill Friday, after I win the 12 mil in powerball on Thursday night, then I will buy a Gulfstream 2, a real noisy one with RR spey's). :)