Alliance Flight Training is expanding! Every month we’re adding new club members, creating more and more demand for our aircraft. If you have an airplane and you’d like to start making money with it, we’d like to talk aircraft leasebacks.
An aircraft leaseback is basically a management agreement. Under this agreement, Alliance Flight Training serves in the role of asset manager. The aircraft is owned by the individual, while Alliance Flight Training is responsible for marketing the aircraft, introducing qualified, well trained pilots, managing all financial transactions, coordinating maintenance, and ensuring the aircraft meets all regulatory requirements.
Working with Alliance to Leaseback your Aircraft is quite simple.
The average owner-flown airplane flies fewer than 100 hours per year, resulting in extremely high fixed costs of ownership. In the airplane leaseback agreement, flight schools rent out your personally owned airplane. In return, they manage the maintenance and repairs, clean the airplane, and handle the scheduling. The owner gets tax breaks and gets to offset the high cost of ownership through the leaseback operator, via having the airplane flown well over the 100 hour average.
Alliance Flight Training is a seasoned flight school with a well established customer base and reach across a wide demographic. Alliance Flight Training’s philosophy revolves around a basic commitment to excellence. This applies not only to flight instruction but to all aspects of our business, including our aircraft rental fleet.
Alliance Flight Training has a well-established reputation for operating with the highest standard of integrity; we have our own in-house parts and maintenance department that not only ensures a high standard of aircraft maintenance, but also offers the lowest costs around.
While everyone’s personal situation is different, here are just some of the reasons to consider putting an airplane on leaseback.
Again, the aircraft leaseback is basically a management agreement involving an aircraft you own. You provide us with your airplane. We collect all the revenue. We pay all the expenses. At the end of each month we cut you a check when revenue exceeds expenses. If expenses exceed revenue, we send you a bill. We take care of everything for you, so don’t have to worry about all the tedious details of aircraft ownership. In exchange for our services, we charge a modest management fee. Of course, just like all other expenses, the management fee is deducted from the revenue.
While results vary, it is fairly typical for our aircraft owners to receive checks in the range of $1,500 each month. Some aircraft owners are regularly receiving twice or even three times that. Of course there are exceptions. Some airplanes just do not fly as much as others, and some are plagued with maintenance issues that lead to extended down times and unusually high maintenance bills. Additionally, aircraft owners should set aside part of their profits to cover unexpected maintenance “surprises”, as well as the more predictable maintenance expenses such as engine overhauls.
Aircraft leasebacks are highly variable investments and are not for everyone. The decision to put an aircraft into an aircraft leaseback should be considered carefully. We track the financial performance of all our aircraft, and have detailed historical data to help make informed decisions. If you think a leaseback is something you might consider, please contact us for more details. We’ll be happy to work with you to predict the revenue, expense, and overall performance of your aircraft in our fleet. We can also help you purchase the right aircraft and to set your aircraft’s rental rate to maximize your profits. After all… we cannot be successful as a flying club unless our aircraft owners are successful.