From: kleing@qualcomm.com (Klein Gilhousen)
Subject: Operating Costs for Cessna 421C
Organization: Qualcomm, Inc., San Diego, CA
Date: Tue, 15 Dec 1992 21:47:55 GMT

In response to my last posting about my first annual in my Cessna 421C, 
I was asked the following question:

>I am curious what your operating expenses (per hour) are.  A 421 is one
>of those planes I'd like to own *someday*.  Maybe a dream, but one has
>to dream doesn't one?

Operating and ownership costs come in several varieties; the direct 
hourly costs that wouldn't be incurred if you stayed on the ground, 
semi-predictable indirect hourly costs due to eventual run out of 
engines, prop, etc., unpredictably indirect hourly costs due to 
maintenance to fix things as they break; and costs that have more to do 
with passage of time than with flying such as hangaring, annual 
inspections, insurance and taxes.  There's also interest or its 
equivalent in "opportunity cost" if you don't finance the plane.

For the 421C, you can figure about 60 gallons for the first hour and 40 
gallons for the rest of the flight if you cruise (as I do) at 61% power.  
She trues out at 210 kts at 25,000 at this power setting.  You can run 
it up to 220 kts if you're in a hurry and don't mind 50 ga/hr.  Burns 
next to no oil.  Maybe a quart every 15 hours or so.  A four hour flight 
will average 180 gallons of fuel burned or about $95/hr if you pay 
$2.10/ga for fuel.  It's tempting to think of this as the "cost" of 
flying the plane because this is all that is spent directly for a 
particular flight.  However, we all know that there will inevitably be 
additional expenses which should be spread over all the flight hours.

Engine replacement cost is a VERY big unknown.  The engines cost about 
$40,000 each for factory remans.  TBO is 1600 hours.  So this is $50/hr 
if you believe the TBO (I don't.)  I figure maybe 1000 hours.  So $80/hr 
instead.  I haven't looked into what the props are going to cost me yet.

It is hard to figure what maintenance is going to cost.  All you can do 
is buy a good plane and hope for the best.  And then you can use 
retrospec after you've flown it for awhile.  But the past does not 
really predict the future all that well.  Before the hundred hour 
inspection (which cost $2800), I'd spent about $4500, mostly fixing 
stuff that broke or was found wrong just after delivery.  The dealer 
paid for about $2500 of this stuff.  So, cost to me has been about $4800 
for 100 hours of flying, or $48/hour.  

I'm getting a nice headstart on maintenance cost for the second hundred 
hours.  It looks like maybe I need a new aux fuel pump for the left 
engine.  This will cost about $1200 or so.  It's not dead yet but is 
showing signs of impending failure.  I was going to give fellow netter, 
Dennis Hurvitz, a ride but the primer (which is the aux fuel pump) 
didn't want to function.  I finally got it to work by saying the proper 
magical encantation or something so Dennis got his ride.  ;-)

Hangaring costs $300/month for a full service, heated (very necessary in 
Montana) hangar.  They get it out and put it away for me.  24 hour 
service.  This is also the maintenance hangar so the mechanic keeps a 
pretty close eye on it for me.  

Insurance is expensive but available, even for a sub-1000 hour pilot 
like myself.  I have $320K coverage on hull and $5 million flat 
liability.  This is the most liability they would sell me.  Premium for 
the first year is about $15k.  (Yikes, you could buy a pretty good used 
single for two years premium!!!)  Supposedly, if I don't have any 
problems (claims) the first year, I can expect a substantial reduction 
in premium for the second year.  We'll see.  The insurance company also 
listed at no cost my company as an additional named insured.  This kept 
the legal folks in the company reasonably happy (meaning that they let 
me fly myself on company business and pay some of the costs.)

Operating cost is then about $320/hr assuming 200 hours/year before 
counting in interest.  Interest would add about another $125/hr 
(assuming 8%) for a total of about $445/hr.  Whew!!  Pretty steep.  Lots 
more than renting a Cherokee or even a Seneca at the FBO.  Now that I've 
figured this out for you I'm sorry I did it.  Sometimes it's better not 
to know.  ;-)

And what do you get?  Pretty fast, very comfortable, quiet (1750 rpm 
cruise), room for eight in a pinch, seven comfortably, range about 900 
nmi with full fuel (and 4 people), full deice capability, plenty of room 
for baggage, 2200 lb useful load, cabin class, lotsa toys on the panel.  

My typical trip is Bozeman to San Diego with three people.  I make it in 
4-5 hours depending on winds.  With strong headwinds, a fuel stop is 
necessary.  I've had to do this twice in ten legs.  Usually, I beat the 
airlines.  Delta has service from BZN-SLC-SAN that takes about four 
hours of scheduled time.  Last spring, on three different trips, the 
average turned out to be six hours what with various weather and 
mechanical delays at SLC.  Thus, waiting for baggage, etc, it's usually 
quicker for me to fly myself.  Lots more fun too.  But not cheaper.  

Dream on.

Klein Gilhousen, Golden Eagle N421KG, WT6G
QUALCOMM Incorporated


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