I won’t lie to you, owning an airplane will lighten your wallet. As the owner of multiple types of light airplanes over multiple years I consider myself an expert on flying budgets. To minimize the pain and angst involved in budgeting I separate my expenses into known and unknown, fixed and variable, and I do my rough budgeting by calculating an equation on an annual basis, with quarterly check ups. That way I don’t fret over expenses on every flight, because, frankly, fretting takes the fun out of flying.
My fixed budget items for my light single engine aircraft include insurance and maintenance, oil and storage. These are items I can easily get an annual bead on. I add them up and call them “F”. Variables include fuel and miscellaneous trip costs, plus unexpected maintenance; but even these I can rough out a year in advance based on prior knowledge (I’ve been at this for two and a half decades, which helps). These each get their own designation in the equation, since they can change independently.
It helps that my operating hours are pretty consistent every year. I know I’ll probably put 150 hours on the traveling machine, and 50 hours on the “kick-around-the-patch” bird. That gives me another constant in my equation.
Yes, fuel is a sticky variable. It goes up, it goes down. Even my best estimate can fly out the window when world politics play havoc with supply and demand (or the perception of supply, in many cases). That’s why I tend to go fat on my estimate. This year, for instance, I ball-parked my fuel costs at $6 per gallon, even though the fuel at my home base runs more than a dollar a gallon less. By overestimating by about 15% I give myself a little room.
Same goes for maintenance. If I ball park using a 15% markup on my mechanic’s hourly rate to pad for unknown costs on the road I’m in better shape. Parts, well, that can get interesting. Best to throw, say $3,000 in the pot and if I don’t use it, well, that’s $3,000 more in the reserve for the “next engine pile” next year.
FBO costs are next. I know some FBOs waive parking fees with a fuel purchase, but rarely for every night of your stay. And there are times, particularly when weather threatens, that you want your airplane in a hangar. That’s gonna cost you. By building those costs into my flying budget ahead of time I take the stress out of saying “yes” when I’m offered the protection of a hangar on a stormy night in the hinterlands.
Frankly, the entire exercise each spring is about eliminating my money-stress around flying. That way I can simply enjoy the privilege of being airborne in my own private craft, as PIC. It’s a privilege I worked long and hard to afford, then to qualify for, and, finally, it is a privilege I cherish and advocate for. The last thing I want to do is let the anxious smell of money to get in the way of the very activity that brings me peace and serenity.
Want to take the sting out of your operations? Here’s my formula:
Flying cost = (Time aloft x Fuel used)+ (FBO cost x Trip legs) + (Parts + maintenance cost) + Fixed costs (insurance, oil, storage)
Don’t forget to keep that pile of money growing for your next engine, too. Happy contrails!