From: stephens@access.digex.com (John Stephens)
Newsgroups: rec.aviation.owning
Subject: Re: Leaseback - should I do it...
Date: 5 Jan 1993 15:45:14 GMT
Organization: Severn Companies, Inc., Lanham, MD 20706
Distribution: usa
NNTP-Posting-Host: access.digex.com

In article <1993Jan5.130608.13295@murdoch.acc.Virginia.EDU> psv2b@poe.acc.Virginia.EDU (Peter S. Vines) writes:
>I'm with a small group (3 or 4) planning on buying a fixed gear/prop,
>4 place ifr airplane.  We're contemplating a leaseback arrangment with
>the local FBO's flight school.  The FBO will give us the "numbers" as to
>how the arrangement works; I'm looking for the net wisdom as to why or why    
>not!
>I've heard that it's not a money maker, but does help to cover some of the
>fixed expenses.
>Should we prohibit primary training?
>Is personal scheduling a problem?
>We're not sure yet what type, probably a 172 or Archer.
>Thanks for any advice.
 
I purchased a C-172 and put it on leaseback witha local FBO just
under three years ago.  Here are my experiences -- I consider the
leaseback choice to have been good.

Jan-90: puchased N51078, a 1981 C-172P with 1120 TTAE. The plane
had previously been on leaseback, but the former owner didn't like
to spend money on minor repairs, so it sat idle much of the time.

I decided to "fix everything", and assisted in its first 100-hr to
see what needed doing.  Not much; nothing major, lots of little
things that I could do myself.

Over the three years, I have had no major problems.  No damage, no
"hard landings" (that i know about at least), even though the
plane is used for primary training as well as IFR and X-country
rentals.

It exceeded TBO with no significant problems -- finally did the
major overhaul at 2300 hours.  Chose a "non-name-brand" overhaul
shop based on convenience, cost, and the FBO's past record with
their work.  Have had no problems in the 11 months (500 tack
hours) since.

Leasebacks do cause significant additional costs for the owner;
insurance is higher (~$310 per month), you need 100-hr inspections
instead of an annual (essentially the same -- only difference is
that you need an IA to sign off on an annual).  Also, you run
through brake pads and tires at a truly phenomenal rate, due to
the large number of landings, and student enthusiasm for pushing
hard on the pedal [ :-) ]

Excluding fuel, the TOTAL costs have been about $22/HOBBS HOUR.
Fuel prices have ranged between $175 and $2.10 a gallon over this
time.  Fuel burn rate has averaged just over 7 gal/hr (This seems
pretty good to me!)

The above costs include engine, airframe, and avionics
maintenance. I have has to replace the AH, the DG, and the
turn-coordinator twice. The ADF has been refurbed at the King
factory, and I have had a couple of other minor COM repairs.

The leaseback arrangement essentially breaks even on the cost of
owning the airplane.  It certainly subsidizes my cost of
OWNERSHIP, and reduces my cost of FLYING.  I could not have
afforded to buy a plane without a leaseback arrangement.

Scheduling for my use is a pain, sometimes.  It is especially
annoying when you want to fly, the plane is booked, and then the
booker does a "no-show".  On balance however, I can live with it.

Your situation, where several of you want to share a plane, might
cause a lot more scheduling problems with leaseback.  You may find
that you have enough trouble scheduling amonst yourselves!

While I have had no real problems, and intend to continue the
leaseback arrangement, I have heard horror stories from others.
My experiences have been good!

By the way, my leaseback is with Montgomery Aviation, at
Gaitherburg, Md. (GAI)

Xref: sparky rec.aviation:17623 rec.aviation.student:488 rec.aviation.piloting:563