Buying a Turbine Aircraft

[jaybird]

My uncle and his partners are interested in buying either a King Air or a Citation. He asked me for my input, but I don't know much about models, price, operating costs, or insurance. Any info is helpful.

 

[Timebuilder]

Your uncle's group has a couple of things to determine before they continue.

1) What is the intended use of the aircraft? Range? Passengers? Length of runways at intended destinations? Weather conditions? Speed?

2) How will the associated costs be handled? Business expense? Personal use? Tax write off?

3) Can the turbine engines be placed on a by-use program? Can you "self insure" the engines for life limits or catastophic failure and save fifty to one hundred and fifty dollars an hour?

Having answered these "use" and "cost" questions, your uncle and his friends can make a better informed decision.

 

[501261]

You know with interest rates being as low as they are, it's not very hard to buy an $800,000 airplane! Put it this way, if you can put 10% down ($80,000) you can "own" a King Air for about $4,000 a month. Certainly not chicken feed, but doable if your making a reasonable amount!

The real question you need to ask them are they able to afford the $200,000 annually it takes to fly a King Air or Citation 100 hours. Those are fixed costs (i.e. hangar, insurance, pilot, maintenance, etc.) and the checks need to be written, granted the more they fly the less it costs (i.e. flying 400 hours annually costs $400,000).

I find that the cost of operation is what makes the talkers, walk!

Having said that, once your uncle's group comes to understand the cost of operating an airplane, an airplane does become an incredible tax benefit.

Then once the group gets serious have them charter a King Air 90, 200, a Citation 500, 550, 560, CJ1, CJ2. See what floats there boat.

Is there any particular reason they're also not looking at a Conquest or Lear?

 

[100LL... Again!]

Talk to as many operators of the same type of aircraft that you can.

This is also a sneaky way to network. (I'm shameless)


Get the Conklin and DeDecker reports for the types you are interested in.

They are pricey, but it's a good test if someone is really serious.

Good Luck!

 

[jergar999]

A local company here was looking into a King Air. They ended up getting talked into a C414. Half the fuel flows, one-eighth the engine cost, lower overall maintenance, and only about 20 knots difference from the C90 they were looking at. Overall they are very pleased. I personally would rather fly the Beech, but if I were paying for fuel it is certainly something to consider.