Cutting the Cost of Aircraft Ownership

AOPA Summit 2011, Hartford Connecticut

The Elephant in the Airspace

• It’s not your imagination.

• Flying is more expensive than it used to be.

1961 New Airplane Costs

• Piper Super Cub- $5,000

• Cessna Skyhawk- $9,280

• Beech Bonanza- $24,300

Inflation adjusted: $35,000

Inflation adjusted:

$64,500

Inflation adjusted:$170,100

Today’s New Airplane Costs

• Super Cub: $150,000 +

• Skyhawk: $283,000

• Bonanza: $650,000

428%

362%

382%

Avgas: Then and Now

• Then: 25 cents per gallon (about $1.75 today)

• Now: $5.70 per gallon (up more than 300%)

Other Fixed Costs

• Insurance, hangar, maintenance all cost significantly more.

High Prices Drive Students Away

And Reduce Pilot Population

Get Frugal or Get Grounded

• Partnerships and flying clubs can dramatically lower ownership costs

Partnerships

• 8,760 hours in a year

• Average pilot flies 100 hours a year

• Aircrafts are underutilized, so why not split the costs with others without giving up flight time?

AOPA Aircraft Partnership Program

• Launched July 2011

• “eHarmony” for aircraft partnerships

• 14,000+ participants nationwide

• Free for aircraft share buyers

• Sellers’ market: more than 90% of those registered are buyers

Future Features:

• Pre-packaged partnership agreements

• Online scheduling for flights and maintenance

• Group discounts for a broad range of services

Introducing the Experts

• David Kruger of the AOPA Aircraft Partnership Program

• Harv Greenberg of the Penn Yan Flying Club

• Janet Bressler of AOPA Aircraft Insurance