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Date: 01/21/99 Newsletter No. 01

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Concept: This newsletter is about presenting information on a
wide range of aviation subjects of interest to pilots and/or
aircraft owners. The author has been a pilot for thirty years
with a wide range of flying experience. The author has also
sold General Aviation aircraft for over twenty three years.
Roger W. Carpenter 1901157 ATP, CFI/II (not current),AGI,IGI.
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Published Bi-Monthly.
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Suggestions and constructive criticisms are eagerly invited.

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near and dear to their heart. We will do our best to come up
with intelligent answers. Hopefully other readers will help out.
Also, I hope that readers will submit articles for publication
in this newsletter.


        Feature Article:

Some ideas for calculating the cost of aircraft operation
on an hourly basis.

Accurate prediction of the cost to operate a given aircraft
is, at best, difficult. The variables are infinite when dealing
with complex machines and people. The only precise way
is to keep detailed records over a least a year. Costs like
fuel, labor services, hangar rent etc. vary substantially
around the country. How a given aircraft is flown and cared
for directly effects cost of fuel, maintenance and insurance.
Even accounting features such as depreciation, interest etc
may impact operating costs.

Below refers to the OPERATING costs of an aircraft. It does
not include accounting considerations such debt service,
depreciation, and even never ending (it seems) appreciation
in value. These are costs of OWNERSHIP not operating costs.

Steps to come up with an ESTIMATE of operating costs. For
planning purposes only. This is a way but not the only way.

GOAL - to determine a realistic estimation of the cost to
operate a General Aviation aircraft under 12,500 lbs.

1. - Estimate, as closely as possible, the number of hours
to be flown annually. This is important because many fixed
costs such as insurance and hangar rent are billed on an
annual basis.

2. - Put all anticipated costs into three categories: Fixed,
Direct and Reserve costs.

Fixed Costs items:

    Insurance (Hull and Liability) From 2% to 5% of
insured value of aircraft. Liability $500 to $4000 depending
on limits. Call insurance companies for exact quotes. TIP:
Shop hard for insurance. It can pay off big!

    Hangar or tie down on annual basis.

    Annual Inspection. For a fixed gear, single engine
usually about 14 to 16 hours times local shop rate (usually
around $50. per hour). Add 2 to 3 hours for a retract gear.
Double this figure to include fixing typical discrepancies
found during inspection until history is established. TIP:
Light twins, on average, cost about 2.5 to 3 times the cost
of a high performance single (Cessna 210, Bonanza etc) to
operate.

    Pilot salary if applicable. Also pilot training.

    Miscellaneous fixed costs such as charts, subscriptions,
personal property tax (annual state registration etc.)

Direct Operating Costs:

    Fuel (the biggie) use 75% power figures from the aircraft
operating handbook for planning. Determine real fuel use by
keeping track of block to block fuel amounts. (Full tank at
start up and fill up after shut down) Get time off the plane's
tachometer, not Hobbs meter unless Hobbs runs off oil pressure)

    Oil - figure no more than 50 hours on an oil-filter change.
25 hours is recommended. Use 1/2 pint per hour usage until
history established.

    Routine engine maintenance - Use .5% of Annual Engine
Inspection cost until history established.

    Routine airframe maintenance - Use .5% of Annual Airframe
Inspection cost until history established.

    Miscellaneous Variable Expense - Landing and parking fees
etc. Use $2/hr until history established.

Reserves:

    Engine Overhaul - overhaul cost divided by the time left
on engine before recommended overhaul. Most light single
engines cost between $15,000 and $22,000 to overhaul. The time
between overhauls (TBO) varies between 1500 and 2000 hrs.

    Prop overhaul - cost is usually between $1000. and $2,000.
to overhaul. There is usually no TBO on a prop. Most are
overhauled when the engine is done.

    Avionics Reserve - after 1000 hours on the radios, divide
10% of the cost to replace by the estimated hours flown per
year.

Note: Very few aircraft owners actually set up reserves.
These estimates are for planning purposes.

TIP: Get in the habit of contacting professionals such as
mechanics, insurance companies, and even the original
manufacturers for ACCURATE information. Don't take opinions
from people that don't really know. If I were buying an
aircraft, I would contact several owners and talk to them.
I can help you in locating owners of specific models. Just
E-mail me at <mailto:roger@aircraft-airplanes.com>


        Questions and Answers:

This is the first newsletter. No questions as yet.


        Classified ads:

For a current listing of General Aviation aircraft for sale by
The R.W. Carpenter Company, go to
<a href="http://aircraft-airplanes.com">Visit Web site </a> or
http://aircraft-airplanes.com depending on browser.

In addition, I often recommend, what I feel to be the best book
ever written about flying an airplane, "Stick and Rudder" by
Wolfgang Langewiesche. I sincerely believe that every pilot
should read this "bible" at least twice. It WILL make you a
better pilot because it discusses flying an airplane from the
WYSIWYG perceptions a pilot receives. If you would like to order
it on-line or any of a million other books from Amazon click on
<http://aircraft-airplanes.com/mainpage.html> Great Discounts.

FREE service to my readers: If you would like a "book" appraisal
on an airplane, fill out the info sheet at my web site. Click on
<http://aircraft-airplanes.com/appraisal.htm> Don't forget to
click on the "submit" key. I'll get back to you.

NEW page at my Web Site. "Cost of Operation" analysis form.
Nothing fancy but it might give you some ideas for planning
purposes. http://aircraft-airplanes.com/cost_of_operation.htm

Help: If you like the approach I'm taking in this newsletter,
please tell your friends. The subscription is FREE.


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