Leaseback (Business not Personal)

wabower said:
I think you're missing the point. If they created an attractive ROI, the companies would be able to afford them. They don't, and so they can't.
Click to expand...

:confused: There is an aviation endeavor that has an attractive ROI?
 
I don't think owning an airplane is ever a money-making proposition. However if someone is determined to own anyway then leasing MIGHT be a way to defray some costs.
 
Everskyward said:
I don't think owning an airplane is ever a money-making proposition. However if someone is determined to own anyway then leasing MIGHT be a way to defray some costs.
Click to expand...

Might, more likely though it will cost you more than if you just keep the plane to yourself. Better to privately rent it to a few other guys in a "non equity partnership' type agreement.
 
Henning said:
TAny deal where you are responsible for the maintenance and repairs from your cut of the deal, run from as fast as you can unless you are an A&P IA and are going to do all the maint and repairs yourself. One of the scams to watch for on leasebacks is their service depart will not only eat your profits, but they'll eat your paycheck as well.
Click to expand...

Henning said:
Many flight schools do own their own planes. They need the leasebacks because they can't afford to buy more planes.
Click to expand...

...and if the flight school controls maintenance, guess who's airplane gets worked on first when your plane and their plane are both in the shop at the same time?

-Skip
 
If ROI is sufficient, assets can be financed with positive leverage. Market conditions prevent GA planes from meeting that test.
Ron Levy said:
Takes money to make money. Leasing is just another form of leveraging.
Click to expand...
 
wabower said:
If ROI is sufficient, assets can be financed with positive leverage. Market conditions prevent GA planes from meeting that test.
Click to expand...
Ahhhh...so your point is that as long as there are pilots foolish enough to enter disadvantageous leasebacks with FBO's, then an appropriate ROI cannot be obtained by rational investors. Sort of like the folks who don't need the money giving flight instruction for like $15/hr artificially depressing the wage for working flight instructors. Yes, I can see that.
 
If logic is part of the test, pilots won't be among those setting the curve.

Ron Levy said:
Ahhhh...so your point is that as long as there are pilots foolish enough to enter disadvantageous leasebacks with FBO's, then an appropriate ROI cannot be obtained by rational investors. Sort of like the folks who don't need the money giving flight instruction for like $15/hr artificially depressing the wage for working flight instructors. Yes, I can see that.
Click to expand...
 
The OP might consider buying a plane to train in and taking on "partners" in a low equity club.

Get 4-5 pilots in the club, get them to buy $500 (refundable) shares of the airplane, get an online scheduling program, make some reasonable rules. Have them pay you (or your company) monthly dues for the insurance and hangar, and a competitive dry rate for rental of the airplane that is to cover maintenance, engine reserve, and put some money into your pocket.

The pilots who fly the plane will treat it better than a rental, you'll have control over who flies the airplane, the monthlies (ins and hangar) will be taken care of and you can make money even after maintenance. No 100hr's, FBO to deal with and you decide how the maintenance is done.
 
You must log in or register to reply here.
Back
Top