Calculating Airplane Ownership Cost

Over the years, calculating the cost to own an airplane is one of the most frequently asked questions I receive. There are a lot of different cost factors that go into owning an airplane. The purchase price is just one piece of the entire cost of the airplane ownership pie. Other pieces include taxes, hangar or tie down costs, fuel, oil, insurance, ramp fees, engine reserves, routine maintenance, inspection items and subscriptions to name a few. The following article will help you determine what costs are involved in owning an airplane and how to plan your finances accordingly. Keep in mind the following article offers a generic estimate on how to calculate the ownership costs of most piston airplanes.

First, we will divide the total cost of ownership into two sections; the first section will be the indirect cost, and second section direct cost.

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INDIRECT COSTS

Indirect costs are the costs that you will pay whether or not the airplane flies. These expenses include the purchase price of the airplane (or monthly payments), insurance, tie down or hangar fees, subscription fees, taxes, and tax benefits.

Let's start with the first indirect cost I mentioned, purchase price or capital cost. This is one of easiest expenses to calculate. If you finance the airplane, get a quote from the bank on the down payment required and interest rate. Currently, rates are approximately 6% with a minimum of 15% down and 20 year financing. As an example, if you put 20% down on a new DA40XLS priced at 0,000, your monthly payment would be just over ,000 a month over 20 years.

To calculate insurance fees, call your insurance agent and obtain a quote for the airplane you are considering purchasing with your experience level.

Hangar fees and tie downs are self explanatory. Call the airport or FBO where you want to base your airplane and ask what options are available. Usually there are about four choices: tie down (leaving your airplane outside in the elements), covered (airplane is outside in the elements but has a shade covering), hangar in common (airplane is constantly moved around in a large hangar shared with several other airplanes), and finally an individual or T hangar. At many airports hangar space is scarce so don't be surprised if you end up on a waiting list. Hangar prices vary according to your location. My T hangar in Concord, NC costs just north of 0/month while that same hangar in Fort Lauderdale would cost well over ,000/month. If you keep your airplane outside, please be sure to at least cover it. It will protect the interior and the avionics. Also, keep in mind that some insurance companies will lower your premium if you can hangar your airplane rather than keep it on tie downs.

Subscription services may not apply to you. If you own a J-3 cub, you can skip to the next paragraph. Almost all aircraft manufactured after the early 1990s offer an IFR GPS. If you have an IFR GPS, you will need to subscribe to a monthly update to keep your database legal to navigate solely by GPS and shoot GPS approaches. If you have XM weather, you will pay around /month for the basic subscription or /month for the full package. The winds aloft feature on the full package is more than worth the additional cost to get it. XM radio is additional. If you own a glass panel airplane, you may opt for Garmin's safe taxi charts and/or approach plate services. Visit http://www.mygarmin.com for cost information. Jeppesen also offers approach plates for glass cockpit airplanes. This service requires an initial upfront cost to install and a higher monthly payment, compared to Garmin's approach plate services.

Unfortunately taxes do not disappear with airplanes, with the exception of tax exempt corporations (see an aviation tax consultant for more information to see if you qualify). Taxes vary from state to state. In Florida, it is 6% of the purchase price. In North Carolina it is a flat tax of ,500. North Carolina, however, charges property tax which varies by county and by city. Where I live in North Carolina, the airplane property tax rate is around 63 cents per 100 dollars, and I have a city tax of 42 cents per 100 dollars. If you use the airplane for business, you may be able to depreciate the use and cost of the airplane which benefits your estimated cost of ownership. Please consult with an airplane tax specialist to determine your individual situation.

DIRECT OPERATING COSTS

Calculating the direct operating costs is a little trickier. There are different ways of calculating what it will cost you each hour to fly. My method is just one method, but it works. Here you need to decide on how many hours you plan on flying a year to establish an annual base budget.

Let's start with the basics. Most pistons engines will require an oil change every 50 hours. Depending on where you live, a standard oil change will cost between 0 to 0. Call the local mechanic on the field and find out what he charges. If you plan on flying 100 hours a year, the math is simple.

Fuel consumption varies according to different aircraft. You can usually visit a manufacturer's website or consult the POH to get the cruise fuel burn. If you are flying an aircraft with a worn out engine, consider the published fuel burn to be the best case scenario (which often is not the case). Find out what avgas costs at your local airport and do the math. Keep in mind avgas prices vary

Engine and propeller reserves are calculated into the equation even if you own a low time or new airplane that you plan on selling long before overhaul. You can usually get a quote from a local FAA engine repair station on the cost of overhauling your engine or on the cost of installing a factory remanufactured engine. Take that price and divide it by the hours remaining till TBO and you will get an idea of how much you need to put away each hour. If you plan on buying a twin, double the fuel, engine and propeller costs.

Scheduled maintenance is another cost worth planning for. Every year your airplane will be due for an inspection. Again, prices will vary depending on where you do your inspection. Shop rates in South Florida average /hour, while in North Carolina they are around /hour. Call a service center familiar with your airplane and see what they charge for a standard annual inspection. Keep in mind that the price they quote you doesn't include squawk items, airworthiness directives, service bulletins or regulatory replacement items. These are extra costs. If your airplane is still under warranty, then you shouldn't expect any surprise repair bills when you pick your airplane up. A safe bet for budgeting additional expenses for an airplane out of warranty is to double the price of the annual inspection fee; this budgeting will cover almost any unexpected surprises that may occur during the year. You may also consider a reserve for paint, interior, and avionics upgrades in which case you will want to put away a little extra.

Finally, you will need to determine what your airplane will be worth if and when it comes time to sell it. Airplanes typically stop depreciating after 5 years. Like cars, their depreciation rates vary. Companies such as Vref and Aircraft Bluebook offer retail pricing and trade-in pricing.

Calculating Airplane Ownership Cost

Via Travel Agent or Internet/Online Booking: How Will I Get Tickets?

More than just a once-a-year affair, business executives have now found themselves in a situation where they have to get on a plane more often than they have ever thought of. Moreover, this proves to be a challenge given the increasing complexity of business travel, with connecting flights, multiple time zones, complicated fare and accommodation expense calculations.

We will talk about the two major ways of fixing plans for business travel and their respective ups and downs. This is to help you, the business traveler, find the deal that best suits your taste.

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First, we have the traditional travel agency. While most think that this option is outdated, the travel agent of today still has his advantages over anything else. Travel agents have the expertise with all things that have to do with their trade. From ticketing and planning itineraries, to finding the best hotels for your stay, they know it all. All these variables can be daunting to the busy executive, who seldom has enough time to go through all the nuances that have to be dealt with.

However, travel agents sometimes have the knack for giving you the flights that will give them the greatest profit margin. We can't blame them because they're only human, but it can be difficult on our end nonetheless.

Second, is the internet. Internet booking is very popular nowadays because it is usually faster and cheaper than booking with a travel agent - no travel time to the travel agency's office, and no extra costs for service fees. For purposes of economy, this is the way to go. Furthermore, there are airline perks that come only when tickets are booked online.

But then, booking via the internet can be difficult when you wish to go to a relatively obscure destination, where no direct flights are available, and when travel information is scant. It will be difficult to search for good hotels, among other things.

If you want it fast, go for the internet. If you want it comprehensive, go for a travel agency. Each has its own advantages, and it's now up to you to choose.

Via Travel Agent or Internet/Online Booking: How Will I Get Tickets?

Private Apartments to Rent Fuerteventura, Booked Direct - An Alternative to Package Holidays?

Private apartments to rent in Fuerteventura direct from the owners could be the answer for you if you don't want a package holiday. Some people, especially those who are regular travelers, can find organized holidays a bit constraining and would enjoy a stay in Spanish apartments to rent or Spanish holiday villas more than in a hotel. If you have internet access it is easy to find accommodation and flights that you can book yourself and you may find that you can save a bit of money as you are cutting out the middlemen and the commission they charge, when you book it yourself!

Fuerteventura is thought to be the oldest of the Canary Islands and was created about 70 million years ago as a result of volcanic activity. It has a fantastic climate with spring-like weather all year round with an average temperature of about 20ËsC which makes it a great place for Spanish holiday villas and Spanish apartments to rent. There are many types of private apartments to rent in Fuerteventura - some are cheap and cheerful, ideal for a base if you plan to spend most of your time on the beach, and others are luxurious with every home comfort provided.

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If you are thinking of booking private apartments to rent in Fuerteventura, Corralejo and Costa Calma are two of the main resorts on the island. Correlejo is situated in the north of the island about 35km from the Airport and is one of Fuerteventura's liveliest resorts. Corralejo has a buzzing nightlife with a variety of entertainment to suit most tastes and ages. Many British tourists book Spanish holiday villas and Spanish apartments to rent here. In contrast Costa Calma which is 80km south of the airport is recommended if you want a quiet beach holiday as nightlife here is mostly hotel-based and the resort's main attraction is its long, white-sand beach.

If you have booked Spanish holiday villas or private apartments to rent in Fuerteventura you will find that the island has plenty of attractions and activities to keep you occupied. The main town on the island, Puerto del Rosario is worth a visit. It has a picturesque harbour and many excellent restaurants and bars. The Jandia Nature Reserve is located in the town of Pajara and is a blend of sand dunes and plant life. It is one of the most important areas of natural wildlife in the Canaries and numerous animals and insects can be found here including kestrels, stonechats, hawks, Egyptian vultures and lizards.

If you can tear yourself away from your luxury villa rental Spain there are many interesting places to visit if you are interested in history. The Archaeological Museum has displays of Aboriginal artifacts, most of which are examples of pottery but there are also bones and tools shaped from bone. The Cannons outside the museum were captured from attacking English Pirates, who were repelled by local farmers at the Battle of Tiscamanita in 1740. When you have had your fill of history you can go back to your private apartments to rent in Fuerteventura and plan another sightseeing trip.

Finally, when you have booked your private apartments to rent in Fuerteventura and your flights, don't forget your travel insurance. It is worth contacting a reliable insurance broker who can advise you on the type of policy you will need. You can than compare prices from different companies and see which is the best for you.

Private Apartments to Rent Fuerteventura, Booked Direct - An Alternative to Package Holidays?

Tips For Road Trips in Canada

Canada has often been praised as a country with wide open roads plus spectacular views all over the country. This of course may tempt many to travel to Canada by road in order to see the scenes many have come to enjoy. But before you reach the border completely clueless and be denied entry into Canada, there several things which you will be advised to remember. A passport is a mandatory requirement in order to cross into Canada. Canada has a well known highly restrictive immigration control border point rules. This includes ensuring that even before you reach the border point booth you should at have your passports ready in hand and give them to the driver so that once the vehicle stops there will be very little time wasted. Any unnecessary delays could lead to high penalties.

In the event that you decide to bring along your relatives or even your children of your friends without their parents with you, then it is necessary to have a written consent from the parents or guardian. The letter should have contact information in case they want to confirm the information that they are being given. Even if you decided to go with your own child but without the other parent, it is still advisable to have consent stating the same information.

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It is also advisable to know what you are allowed to carry across the border into Canada. Certain types of hunting rifles and even motor boats are not allowed into the country. Drugs are however not allowed into the country unless there are medical drugs and not banned substances. Your vehicle should also have all its right registration materials. The Canadian authority will quickly impound any vehicle they suspect to have been stolen or one that they feel is being sent into the country in a manner to avoid duties on new vehicles into the country. You must also be fully prepared to answer questions on where you are going as any insufficient information by you might just ensure that you do not cross the border.

The windows of your vehicle must also be rolled down in due time in order to ensure that the officers at the border can see all the passengers in the vehicle and address them as well in order to remove any suspicious he or she might have of them. In case you did not shop before you reach the border, do not worry since all of the borders in Canada are equipped with duty free shops. The catch however is that you must consume what you have bought within Canada and not cross over the United States with them. You will also be required to reproduce the receipt of these items if asked to do so by the border police. The various border crossing points in Canada have their own different waiting times. With these few things in mind, your road trip to Canada might just turn out to be as memorable as you had imagined it would be all along.

Tips For Road Trips in Canada

Advice For Long Haul Flights

Long haul flights can be tiring, exhausting and demanding for weaker passengers, especially passengers with compromised immune system or underlying medical conditions, which may give rise to complications, if proper care and precautions are not taken. Long distance air travel which involve crossing time zones would carry implications on the biological clock of the body, metabolism rate and functions, as well as the timing of medication intake, for those travelers with underlying medical illnesses.

All travelers who have pre-existing medical conditions should consult their medical doctor prior to the air travel to discuss on the change of frequency of their medication. The observation of this procedure is very important. For example, if the traveler is a diabetic, who is traveling across different time zones, the duration and interval of the medicines intake as well as the insulin injection must be clarified and planned with the doctor. A word of caution to patients, caretakers and the staff of the airline, the symptoms of hypoglycemic (low sugar level in body) can present as sweating, anxiety or agitation, and it is critical for these symptoms not be overlooked or mistaken as presentations of the symptoms of jet lag. Thus, it is advisable for passengers with underlying medical illnesses to carry their own customized medical travel kit with a medical card complete with their medical history, to address this grave concern in the event of a medical emergency. This would expedite medical help and it could save your life!

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In order to keep yourself fresh and alert, you may want to consider moving around on the plane every hour. Simple exercises can be carried out while sitting on the seat. Frequent moving around will not only promote the blood circulation in the lower limbs it also helps to prevent deep vein thrombosis (D.V.T) especially if the flight journey is long. The risk of developing D.V.T is higher among pregnant travelers as well as those with underlying medical illnesses like heart disease.

As a result of the dry atmosphere inside the airplane, consuming adequate of water and fresh fruit can prevent dehydration during the long haul journey and keep yourself fresh. Very often the airline company will be happy to serve these beverages throughout the long flight. Keep moisturizers and lip balm handy to prevent dry or peeling skin.

It is important to consume lots of antioxidants such as Vitamin C to keep up your stamina and immune system for your long travel.

Advice For Long Haul Flights

Starting A Cruise Travel Agency

For people who love to travel, starting a travel agency specializing in cruises can be very exciting. Earning a living by talking about your cruise experiences and helping direct less experienced cruisers to the right vacation can be very rewarding. Many people are also attracted to the travel discounts you can receive by becoming a member of the International Airline Travel Agency Network (IATAN). Membership is available after earning ,000 in commissions during the previous 12 month period.

It takes a little while to build your business. Great customer service and knowledge of the business are key ingredients to a successful career. Cruise lines tend to specialize to certain types of people. Some appeal to older crowds, others have many activities for children, while look for more active cruisers by providing more daytime activities on the ship or nighttime entertainment choices. One of the best ways to gain a lot of customers quickly is to sell a group trip. Join local groups, religious organizations, college alumni programs, etc.

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Cruise lines typically pay commissions of 12% - 15% of the base fare. This excludes charges for port taxes and government fees. Additional money can be made by selling travel insurances where commissions are much higher, selling tours while your clients are on land and booking airfare and transportation to the airport or port. If your clients take travel insurance, they will be covered in case of delays, lost luggage or sickness, which will reduce your chances of having an unhappy customer.

As with any upstart business, you need to control expenses. A cruise travel agency can be operated right out of your home with the majority of work done through the telephone or internet. Cruise tickets can be sent by messengers to your clients. One of your more important and higher expenses will be the Errors and Omission Insurance Policy. This will protect you from mistakes during the booking process or from errors in printed materials or advertising.

Starting A Cruise Travel Agency

7 Fast Saving Money Ideas on Vacation

1. Consider staying in a condo or vacation rental home.

These homes are fully furnished & equipped with most amenities including a kitchen, laundry & many of the comforts of your own home & reasonably priced. Check out "Vacation Rentals by Owner."

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2. Keep snacks, drinks and mini-meals in your room

If you do stay in a hotel room, utilize the small refrigerator in your room, store milk for cereal,sandwich fixings for lunch, beer for happy hour, & fruit for snacks. If you have an in-room coffee maker, heat the water to mix up instant oatmeal for breakfast.

3. Check out airline sales or offer pages

Go direct to an airline's specials page & you might find a deal not typically found on a general travel website. You can also sign up for discount travel emails that consolidate many specials from various airlines. Try smartertravel.com or Travelzoo.com.

4. Avoid extra airfare costs like baggage fees

Try & stick to a 1 bag vacation. This will avoid baggage fees, improve your mobility, & reduce the stress of lugging multiple bags on your journey. Shoes & heavy coats are space grabbers so try & limit these. Other clothing can be rolled up for maximum space efficiency.

5. Get Travel Insurance

This may sound like an unnecessary expense but can save you thousands if you were to get sick or miss a flight while on vacation. Many travel insurance companies offer cheap policies & will give you peace of mind. Check out companies like Travel Guard & Travelex Insurance for good but inexpensive coverage.

6. Eat like a local

If you're not on an escorted tour or staying at an all-inclusive resort (where meals are included in the price of your vacation), find neighborhood restaurants or pack lunches made from items picked up from local grocery stores, and you'll save money.

7. Bargain for souvenirs

In places like Asia, Mexico and the Caribbean, don't be afraid to bargain at a street market. Just don't come down too low if you've found an item you really want.

7 Fast Saving Money Ideas on Vacation