Many aircraft owners use their personal plane for only about 50 to 100 hours a year. Such planes are valuable, but underutilized assets, about 95% of the hours in a working year.
Purchasing & renting such a plane out for additional hours can bring its cost per flight hour down significantly, to where ownership can become more affordable, justifiable or even profitable.
Purchasing and Renting out your Plane, can be a 3-way win:
Stanford Flying Club can help with the rental marketing of your aircraft, and assist you with a rental platform, rental customers, and information and services to keep your aircraft in great shape. Through our connections with the industry, we can provide valuable assistance whether you already have or would like to obtain an aircraft, which you can lease or rent out.
Please contact FlyStanford@me.com or ask for a Club Director at: 650-858-2200;
Please fill out the form below in order to download the Aircraft Cost Ownership:
Choosing the right aircraft is a critical step that requires evaluation in several different areas.
Customers currently most often ask for Cessna 162, Cessna-172 and Cirrus aircraft, of the newer kind.
Actually, SFC in the past did manage a mix of airplanes: some it owned and some it held for rent on behalf of others.
To Stanford Flying Club, availability of planes held for rent by others is more attractive than owned planes, as a means to be able to arrange for better and more equipment for education and training of its Members, without the need of having to tie up its modest operating capital or credit in a fleet.
Aircraft owners can generally provide lower cost aircraft, as they can save thousands of dollars from tax benefits, which SFC is unable to use or does not have.
Yes. However, SFC can only accept limited numbers and types of modern aircraft, as rental listings on the online platform.
Both new planes and pre-owned planes can be good for rental purposes.
Newer aircraft have more student/renter appeal than old aircraft. To finance the purchase of a new aircraft, the available interest rates are generally lower than for used aircraft, and you may see longer terms amortizations.
Newer planes have lower maintenance costs, and maintenance expenses will be lower due to warranty.
Cost components include the Finance Costs, Maintenance & Repair, Electronic Services (XM Weather, GPS databases subscriptions), Insurance, Depreciation/Reserve, Parking, Property Taxes and some Administrative /Marketing Costs. Our Aircraft Ownership page or the Club office can provide you with a Calculator that may help you determine expected average Costs/Hr.
If you use a Aircraft Owner Lease Out / Cost Calculator, and slide or vary the number of hours/month flown, to where the net costs per hour end up being zero, you can see your estimated break-even point. Depending on the rental rate set, this may typically fall somewhere between 30 and 60 flying hours a month.
Yes and Yes. There are several IRS requirements that your aircraft rental business must meet if you want to use tax incentives. However, regardless of the tax benefits you can still benefit from substantial cost reductions per hour when you rent your plane out.
Work with your rental agent to set a rental price that is both competitive and covers the costs associated with your airplane, and includes a desired profit per hour.
To offer planes via the SFC rental platform, planes must meet SFC / PUC insurance requirements. SFC has a master policy for such purposes; however as the owner of your airplane you are responsible to pay for all of the expenses of the plane, including the insurance.
For better technical support, factory-authorized maintenance facilities are preferred for maintenance.