Aircraft Acquisition Cost
Flight Training Cost
Jannie Loutzis
Loutzavia Flight Centre
What does it take to keep an
aircraft in the air?
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What does it take to keep an
aircraft in the air?
MONEY
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Aircraft Acquisition Costs
1) The Type of Aircraft;
2) How much money can we
invest;
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Type of Aircraft
1) How often will I fly?
2) Four or Six Seats?
3) Multi or Single Engine?
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How much will it cost?
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Financing becoming more difficult;
10 – 15% deposits increased to 25
-50% deposits in one or two years;
Evolved into a lengthy process;
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How much will it cost?
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New C172
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$ 3 00 000
R 2 300 000
New Baron 58
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$ 1 100 000
R 8 500 000
How can costs be reduced?
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How to reduce cost:
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Fractional Ownership/Partnerships
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Aircraft availability – who flies
when?
Disagreements on Maintenance
Costs;
Complexities in Selling or
Upgrading the aircraft;
Finances and management much
more complex;
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How to reduce cost:
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Rent Aircraft to Schools or Clubs
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Cannot control who flies the aircraft
and where it flies too;
May require more maintenance due
to Training exercises;
Insurances cost more due to higher
accident risk;
Aircraft not readily available when
owner wants to fly;
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How to reduce cost:
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Non Type Certified Aircraft
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C182
$ 400 000
Ravin 500
$ 200 000
Night and IF Certification;
Commercial Operation Certification;
Finance approval and Resale
Value;
Safety and Reliability
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How to reduce cost:
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Buy a used Aircraft
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2012 C182 $ 400 000
1999 C182 $ 200 000
1979 C182 $ 100 000
Are used aircraft safe?
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Year Model/Total Time/Condition;
Previous Accidents or Incidents;
Storage History;
Overhaul History;
Previous Owners and Utilization;
Availability and Cost of Spare Parts;
Pre Purchase Inspection CRUCIAL!!
Test Flight CRUCIAL!!
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How to reduce cost:
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Summary
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Fractional Ownership;
Renting to Schools, Clubs or Charter
Companies;
Non Type Certified Aircraft;
Used Aircraft;
The choices you make will affect
operating costs like insurance,
hangarage and routine maintenance
costs in future!
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Flight Training Costs
•
South Africa
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USA
UK
Aus
PPL R 75 000 ($ 9 800)
CPL R 280 000 ($ 36 000) Single Engine
CPL R 320 000 ($ 41 000) Multi Engine
PPL
$ 8500
$ 10 000
$ 13 000
CPL
$ 50 000
$ 75 000
$ 60 000
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Flight Training Costs
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South Africa 5 Years Ago
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PPL R 45 000
CPL R 180 000
CPL R 200 000
($ 5 800)
($ 23 000) Single Engine
($ 26 000) Multi Engine
Increase of 33%
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Flight Training Costs
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Factors affecting costs of Aircraft:
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Fuel Price
– Increase for R 7.00 to R13.00 p liter;
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Landing Fees and Airport Taxes
– FAWB 100% increase since 2007;
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Maintenance Costs;
Exchange Rates;
Owning or Renting an Aircraft;
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Flight Training Costs
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Other Factors Affecting Training Cost
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Accommodation;
Student Ability;
Full Time vs Part Time;
Financing Cost;
Flight Training Costs vs University
Education
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Flight Training Costs
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How to reduce costs:
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Incorporating Simulators;
Cessna 162 Skycatcher;
Computer based education;
Human Resources;
NB!! Cost cutting may never reduce
standards!
Flying is a Privilege;
Training cost can never be compared
to the cost of a human life!
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