How Much to Own a Plane: A Breakdown of Costs

Owning an aircraft is a significant financial commitment beyond the initial purchase price. Prospective owners must understand the various cost categories to accurately budget. This article outlines the financial obligations of aircraft ownership, from upfront acquisition expenses to ongoing fixed and variable operating costs.

Upfront Costs of Acquiring an Aircraft

An aircraft’s initial cost depends on its type, age, and condition. New aircraft, like turboprops or jets, are more expensive. Used aircraft offer substantial savings, depreciating most in their first five years.

Aircraft type significantly influences purchase price. Piston-powered aircraft are the most accessible. Turboprops range from $378,000 (older) to millions (newer). Older business jets might be $169,000, while new models cost tens of millions.

Most aircraft acquisitions involve financing. Lenders typically require a down payment: 15% for loans under $1 million, 20% for those over. Strong credit may allow less, while a less favorable profile could require up to 30%.

Aircraft loan interest rates range from 6.25% to 9.99%. Terms are typically 10 to 20 years. Aircraft make, model, age, and intended usage influence rates and loan duration.

A Pre-Purchase Inspection (PPI) is crucial before aircraft acquisition, especially for used aircraft. A qualified mechanic identifies damage, maintenance issues, or record discrepancies. PPI costs vary by aircraft type: piston inspections are a few thousand dollars, while turboprop and jet inspections can be tens of thousands. Buyers cover inspection costs; sellers address airworthiness issues found.

Governmental fees, including sales tax and registration, are upfront costs. Most states levy sales and use tax on aircraft purchases, based on price and registration location. If sales tax wasn’t collected, a use tax may apply where the aircraft is used. Rates vary, with state sales tax often starting around 6.25% and combined rates reaching 8.25%.

Many states impose annual registration taxes or fees, from $10 to several thousand dollars yearly. A small fee, such as $10, may be required for aircraft registration transfer. The FAA also charges a $5 recording fee for transferring ownership documents.

Recurring Fixed Costs of Ownership

Aircraft ownership involves fixed costs regardless of flight frequency. These expenses maintain airworthiness, legal compliance, and secure storage.

Aircraft storage is a significant fixed cost, typically in a hangar or outdoor tiedown. Hangar fees vary by location, size, and amenities; T-hangars cost $200-$950/month, jet hangars $1,500-$7,000/month. Tiedown fees are more economical at $55-$330/month, with daily rates of $10-$25 for transient aircraft. Many airports waive daily tiedown fees with a minimum fuel purchase.

Aircraft insurance is a substantial fixed expense, covering physical damage and third-party liability. Hull coverage protects the aircraft, often at an “agreed value,” costing 1.5%-10% of that value annually (70% of premium). Liability coverage, for bodily injury, property damage, and legal defense, ranges from $275-$600 annually (30% of premium). Premiums are influenced by aircraft type, pilot experience, and claims history.

Annual inspections are mandatory for airworthiness. This yearly check is a fixed cost, regardless of flight hours, and depends on aircraft complexity. Single-engine piston inspections might cost $1,500-$3,000. More complex piston aircraft could range from $2,000-$4,000, while twin-engine inspections often start from $4,000 and can exceed $6,000. Costs are determined by the mechanic’s hourly rate ($120-$125) multiplied by inspection hours. Additional repairs add to the cost.

Owners incur costs for in-flight information subscriptions. Electronic flight bag (EFB) apps, like ForeFlight or Garmin Pilot, offer navigation charts, flight planning, and weather data. Annual subscriptions typically range from $109.99 to $370. Dedicated weather services can cost $8.45/month to over $240/year. Paper navigation charts are also available, with individual charts around $8.95 and annual subscriptions from $25 to $36.

Property taxes are another fixed cost. Most states impose annual personal property tax on aircraft, typically based on assessed value. Average annual property tax can be around 2% of the aircraft’s value, though rates and assessment methods vary by state and county. Some states calculate taxes based on manufacturer’s list price, aircraft age, or weight. These taxes are distinct from annual aircraft registration fees.

Variable Operating Expenses

Variable expenses correlate directly with flight hours. These include fuel, non-routine maintenance, engine overhaul reserves, airport fees, and pilot services or recurrent training.

Fuel is often the largest variable expense, fluctuating with market prices and consumption rates. Piston aircraft typically burn 6-8 gallons of AVGAS per hour. Turboprops consume more: single-engine models use 39-60 gallons/hour, twin-engine 90-134.55 gallons/hour. Jet aircraft have higher consumption, from 132-241 gallons/hour for light jets, up to 528 gallons/hour for ultra-long-range jets. Fuel prices vary by location; jet fuel generally costs $4.03/gallon, AVGAS averages $4.73/gallon.

Maintenance costs extend beyond mandatory annual inspections, increasing with flight hours. Routine items, like oil changes, are performed at specific intervals. A typical piston aircraft oil change costs $100-$300, including oil and filter. Aircraft tires require periodic replacement due to wear. Light general aviation tires typically cost $100-$250 each, though a single tire and inner tube can total around $710 before labor. Many aircraft tires can undergo multiple retreads before full replacement.

Unscheduled repairs are inevitable and can significantly impact the budget, often 10%-25% of total maintenance expenses. Hourly labor rates for mechanics typically range from $110-$150. Unexpected issues escalate quickly; avionics repairs might range from $1,000-$10,000, and structural repairs several thousand dollars. To mitigate unpredictable costs, some owners opt for hourly cost maintenance programs, charging a set fee per flight hour to cover future repairs.

Engine overhaul is a significant long-term variable expense. Aircraft engines have a manufacturer-recommended Time Between Overhauls (TBO), indicating operating hours or calendar time before a major overhaul. Piston engine TBOs commonly range from 1,200-2,400 hours, some high-performance models extending to 3,600 hours. Turboprop and jet engines generally have longer TBOs, typically 3,000-6,000 hours, some reaching 16,000 hours. Overhaul costs are substantial: piston engine overhauls range from $15,000-$30,000, while turbine engine overhauls, especially for larger business jets, can exceed $1 million. Adhering to TBO recommendations is advised for reliability and safety, though not always mandatory.

Landing and transient parking fees are variable costs incurred away from the aircraft’s home base. Landing fees vary widely by airport, aircraft size, and weight, often calculated per 1,000 pounds of maximum landing weight ($7.73-$9.66). Some airports impose minimum landing fees, such as $16.50 for smaller aircraft (up to 5,000 pounds) or $31 for larger (up to 12,500 pounds). These fees are frequently waived with a minimum fuel purchase from the FBO. Transient parking fees for overnight stays range from $5-$20/day for piston, turboprop, or jet aircraft, or $185-$1,400+ for monthly parking, depending on aircraft size and airport location.

For owners not piloting their own aircraft, or requiring ongoing flight proficiency, pilot services and recurrent training are additional variable costs. Hiring a contract pilot ranges from $50-$150/hour for general aviation, or $175/hour for specialized captain services. Daily rates typically fall between $300-$1,350, with additional expenses for travel, accommodation, and per diem. Recurrent training is a mandatory refresher for pilots to maintain skills and regulatory compliance. Training costs vary by aircraft type; for jet aircraft, a two-day recurrent program can cost $3,000-$6,500, or approximately $12,000 annually. These costs tie directly to flight frequency and specific training requirements.