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From: aaronf@azure.UUCP (Aaron Friend)
Newsgroups: net.aviation
Subject: Re: Costs of Ownership:  A Case History
Message-ID: <173@azure.UUCP>
Date: Wed, 10-Apr-85 11:11:43 EST
Article-I.D.: azure.173
Posted: Wed Apr 10 11:11:43 1985
Date-Received: Thu, 11-Apr-85 23:57:56 EST
References: <595@ssc-vax.UUCP>
Distribution: net
Organization: Tektronix, Beaverton OR
Lines: 53

I would like to figure your hourly costs a little differently.
Minimum maintenance cost only occurs when zero wear and tear
has been placed upon the aircraft (ie zero hours).
Also the investment costs should be considered as part of the
ownership costs.


Total initial cost	6750.00		675.00 @ 10% interest

Tiedown			  36.00/mo.	432.00

State reg		  55.00		 55.00

Insurance		 420.00		420.00

Maintenance (zero hrs)	 200.00		200.00
------------------------------------------------
Total fixed anual cost		       1782.00

Fuel costs				735.00

Maintenance (flying time)  2.50/hr	150.00
------------------------------------------------
Total annual cost		       2667.00

Cost/hr (60 hrs/yr) = 44.45

When the usage goes to >100 hrs/yr then:

Total fixed anual cost		       1782.00

Fuel costs			       1225.00

Maintenance (flying time)  2.50/hr	250.00
------------------------------------------------
Total annual cost		       3257.00

Cost/hr (100 hrs/yr) = 32.57

As you can see I included 675.00/yr as interest on your investment.
This is reasonable since you could take the $6,750 and get at least
10% from a bank on a TCD.

In order to justify owning it is necessary that well over 100 hrs/yr
be put on the aircraft. I am sure that the $30.00/hr local rental
rate can be reduced by purchasing block time from the FBO.

I not knocking owning an aircraft, rather I think that the justification
should be that I have one because I want one and no other reason is
necessary. Flying is a sport and when you try to justify the expenses
of your sport your in trouble. The cost of venision for hunters has been
estimated to run around $250.00/lb, the cost of trout for fisherman is
over $30.00/lb.