Ownership 1.qxp_Finance 22/02/2022 11:19 Page 1
OWNERSHIP
In-House Flight Ops? Set Up for Success (Part 1) When a business airplane owner flies more than 250 hours annually, the economics tend to favor an in-house flight department. If that describes you, and you’re seeking to establish your own flight operations, René Armas Maes shares tips on setting up for success…
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aintaining an in-house flight department provides aircraft owners with the best levels of flexibility, security and control over their aircraft’s operation. But with these benefits comes responsibility for all aspects of the operation, including the paperwork and regulatory compliance. When planning to buy a business aircraft the options are simple: Either you control the process, or you let someone else (i.e. an aircraft management company) do it for you. Both options offer pros and cons, as discussed previously in ‘Flight Department or Management Company: Which is Best?’ (AvBuyer, January issue, p76).
42 Vol 26 Issue 3 2022 AVBUYER MAGAZINE
Should you decide the pros of operating an in-house flight department outweigh the cons, you’ll want to set up correctly, right from the start. Here’s how…
Budget, Aircraft Selection & Timeline
Begin by establishing the operation’s annual budget, including the number of hours to be flown, the typical mission length, and estimates of the hourly variable and fixed costs, including fuel and maintenance costs. There are several software solutions available to help analyze fixed and variable cost data. According to AMSTAT, for example, a 12-year-old pre-owned Dassault Falcon 7X, capable of flying 6,000 nautical miles, sells for approximately $16m. www.AVBUYER.com
