Can you justify flying?
; fraid I'm already spoken for tho'! 
Joined: Jul 2005
Posts: 538
Likes: 0
From: Canadian Shield
Look on the bright side........
The initial response to dramatically higher fuel costs for most private owners, flying purely for fun, is to fly less often or not as far.
In my part of the world, most private owners are in their 40s - 60s. After a year of high AvGas prices, an increasing number who were flying less often are now biting the bullet selling their aircraft / shares in aircraft.
Don't forget also that many private aircraft are bought as luxury toys when times are good. When the loan co repo man is at the door, in most cases, it is the boats and planes that go before the roof over your head.
The upshot is that prices were already softening. The dramatic drop in the US$ has already made US-sourced aircraft over 40% cheaper in Canada. The glut of aircraft now coming on to the US used market is killing prices.
As an example; two guys I know in Mn are selling their 5-year old Piper Cub on floats. One had a loan on it he can no longer repay and the second can't afford to buy the other's share out. Asking price was C$75k. Aircraft has only flown 50 hours in the last year. They then reduced it to C$65k and still had no takers. If oil stays above $135/barrel, I reckon they'll acccept $50k soon.
The oil price, like dot-coms and housing is going through a price bubble. It will calm down. The upshot?
THIS COULD BE THE CHEAPEST TIME IN A GENERATION TO BUY YOUR OWN AIRCRAFT.......
In my part of the world, most private owners are in their 40s - 60s. After a year of high AvGas prices, an increasing number who were flying less often are now biting the bullet selling their aircraft / shares in aircraft.
Don't forget also that many private aircraft are bought as luxury toys when times are good. When the loan co repo man is at the door, in most cases, it is the boats and planes that go before the roof over your head.
The upshot is that prices were already softening. The dramatic drop in the US$ has already made US-sourced aircraft over 40% cheaper in Canada. The glut of aircraft now coming on to the US used market is killing prices.
As an example; two guys I know in Mn are selling their 5-year old Piper Cub on floats. One had a loan on it he can no longer repay and the second can't afford to buy the other's share out. Asking price was C$75k. Aircraft has only flown 50 hours in the last year. They then reduced it to C$65k and still had no takers. If oil stays above $135/barrel, I reckon they'll acccept $50k soon.
The oil price, like dot-coms and housing is going through a price bubble. It will calm down. The upshot?
THIS COULD BE THE CHEAPEST TIME IN A GENERATION TO BUY YOUR OWN AIRCRAFT.......
