In this guide, we will explore how enthusiasts can approach aircraft purchases through rental, group share, or sole ownership options.
Looking to make the biggest leap in your aviation journey? We recommend that you hold up and consider all the bases first!
Many experienced pilots dream of owning their own plane and the benefits that come with it. Not only do you get a deep sense of ownership, but flying your own plane just unlocks a new dimension of flying. You have full control over the health of your aircraft and can tweak it any way you like!
However, owning an aircraft is not as easy – it’s certainly not like buying a car. Owning an aircraft is no small feat and gets you bragging rights, but it requires more than just a one-time financial investment for your purchase to keep bearing fruit.
The aircraft of choice for hobbyists are light aircraft – the same kind that pilots train on. These aircraft are smaller, manageable, and relatively affordable.
There are several macro and microeconomic factors that you need to keep in mind when deciding to own an aircraft. Thankfully, there are also several options that you can explore that can be easier on your pocket. In this guide, we will explore how enthusiasts can approach aircraft purchases through rental, group share, or sole ownership options.
AIRCRAFT OWNERSHIP - IS IT RIGHT FOR YOU?
Purchasing an aircraft is no easy feat; it requires considerable financial planning and thorough research. However, before we get into that, let’s first explore whether the prospect of owning an aircraft is right for you.
People outside of aviation may believe that the best way to learn how to become a highly capable pilot is to eventually own your own aircraft – but this isn’t true. The modern aviation industry is capital-intensive, but with the right infrastructure and influx of students, flight schools, like Sherburn, can divide the cost to everyone, making it more affordable to learn how to fly.
To get the most out of your decision, you need to first understand your flying needs, your expectations from owning an aircraft, and the frequency that you believe you will need the aircraft throughout your aviation journey.
There are three ways to “own” an aircraft:
- Private or sole ownership
- Fractional or Group Share ownership
- Renting
Let’s look at each in detail:
PRIVATE OWNERSHIP
Owning your very own aircraft is certainly cool and gives you bragging privileges for life – but it is not a necessity, at least for most people in aviation. Private ownership comes with a lot of responsibility and added costs. From the aircraft upkeep and the initial purchase itself, sole ownership can prove to be quite overwhelming, especially if you plan to finance the purchase through your own pocket.
Let’s look at the pros and cons of sole ownership.
Pros:
Autonomy
When you own an aircraft, you have every right to use and tweak it to the fullest as long as all modifications and use are under the Civil Aviation Authority’s guidelines.
In this case, you will not have to consult with any co-owners or shareholders and simply make your own choices. This is perhaps the biggest allure of sole ownership. Apart from this, you also get full authority over who you allow on your aircraft, which is something that you seldom can dictate when using co-owned or rental aircraft.
BYOT (Build Your Own Trips)
Since you own the aircraft, you will have full privacy, which means that you won't have to inform anyone about its use or your trips. This is the biggest advantage for aviation enthusiasts who frequently partake in long-distance flights and want to keep their itinerary private.
Fly whenever you want
Another perk of owning an aircraft is that you can fly it whenever you want. Pick a time and place that suits you, and if the weather is on your side, you can easily take your aircraft anytime and anywhere.
It doesn’t matter if it’s night or day; if you have the needed ratings and certifications and can prepare your aeroplane for travel, you are free to take to the skies.
This also means that you do not have to adhere to strict schedules, with the freedom to fly for as long as you like or as far away as you like (provided you deal with customs formalities if flying outside of the United Kingdom).
Cons:
Costly
The biggest benefit of owning the aircraft is that you own everything about it; the biggest drawback is also that you own everything about it, including the associated costs.
As you can imagine, unlike cars, aircraft aren’t pocket-friendly. Apart from the costs related to initial acquisitions, private owners also must keep in mind the ongoing maintenance costs that will be associated with owning an aeroplane. Some of these costs include fuel, storage, crew, as well as general upkeep and inspections of the aircraft. These costs aren’t shared or forwarded to anyone but yourself!
Maintenance
Aircraft require maintenance, which is often stringent based on the guidelines provided by the CAA. This means that you need to ensure that your aircraft is regularly maintained according to a set schedule.
For many owners, this can be stressful and a financial burden in and of itself because you need to ensure the overall health of your aircraft, regardless of how much you use it. Getting around regular maintenance and finding the right crew is another headache. However, in many cases, pilots can also delegate the responsibility of maintenance to a third party.
Storage
Aircraft can only be stored in specific locations as per the CAA, and since they require quite a lot of space for storage, you will also need to keep hangarage and storage costs in mind.
Finding the right hangar can also be troublesome, and even if you find the right hangar for your needs, you will need to handle the airfield charges that come with long-term storage.
Private Ownership: Cost Breakdown
Here is a breakdown of the costs that you can expect if you go with private ownership:
Initial Purchase: £15,000 for older models to over £200,000 for recent ones.
Upfront Costs: Pre-purchase inspection: £1,500–£5,000 and CAA registration: ~£150
Ongoing Annual Costs: Fuel: £50–£200 per hour, Maintenance: £2,000–£5,000, Hangar: £1,000–£3,500 per year and Insurance: £1,000–£3,000 per year.
FRACTIONAL OWNERSHIP OR GROUP SHARE
If you feel overwhelmed by going through the costs of sole ownership, then there is another, more affordable option: group share.
Also referred to as fractional ownership, group sharing is when two or more people buy shares in an aircraft, with a set amount of hours allocated to each shareholder depending on the amount that they have invested.
For example, if you require the aeroplane for a longer period of time as compared to others, you can choose to buy two or even three shares of the aircraft. This will give you more stake in the aircraft, and therefore more control over its use.
In most cases, the shares of an aircraft are multiples of 1/16.
Anything less than that is not considered worth the costs involved. The total number of hours that an aeroplane is available for in a year is usually 800 hours, so a person who owns 1/16 of its shares will have access to the aircraft for 50 hours per year. ½ of the aircraft share will give you a total of 400 hours per year, with ¼ meaning the share is worth 200 hours.
In some instances, shares can be divided according to days as opposed to hours. However, this type of setup depends on the shareholders or the company through which the aeroplane is purchased.
Here are the pros and cons of group sharing:
Pros:
Cost-effective
Since the aircraft is divided into shares, every shareholder gets to bear the cost of the aircraft, depending on how many shares they own. The more shares you have, the higher your stakes, and the more costs you will have to bear.
All the costs that we discussed above for private ownership are divided, including any surprise maintenance or even damages, which means you will rarely be blindsided by a huge bill.
Keep in mind that group-shared aircraft are usually bought through a company or flying club like Sherburn Aero Club that provides comprehensive group sharing options. The club will also provide storage space for the aircraft. This way, owners are spared the hassle of finding storage space and bearing the hangar rent on their own.
Multiple Options
The great thing about group sharing is that you can own multiple shares in various aircraft, which means that even if your primary aircraft is grounded due to maintenance tasks, you can opt for another aircraft that you own shares in.
Sure, you will have to ensure that you are within the limit of your flying hours, but you will always have an aircraft ready for service whenever you need it.
Investment Autonomy
Group sharing allows pilots to buy shares in aircraft according to their needs. You will have full autonomy over which aircraft you choose to invest in. If you are looking for an aerobatic-ready aircraft, then you can buy the majority of the shares for it and invest further in a regular light aircraft for normal flying needs.
As per the contract setup, group sharing can also enable shareholders to bank their unused hours over the length of their contracts. This way, you can make full use of your flying hours with no wastage.
Flexibility
Group sharing allows you to feel like you own the aircraft without really owning it. For example, during your allotted hours, you are in full control of the aircraft. This means that you get to enjoy most of the perks that we discussed for sole ownership. You can fly wherever, whenever, without having to abide by strict scheduling, such as in the case of aircraft for hire.
Cons:
Limited variety of aircraft
Not every type of aircraft is put up for group sharing, which can limit your options.
Compared to other options, such as renting, group sharing might not provide you with a wide variety of aircraft as per your preference.
If you are someone who will be satisfied with flying the same kind of aeroplane, this shouldn’t be much of an issue. However, if a pilot wishes to test out different kinds of aircraft, group sharing might not be ideal.
Long-term investment
Group sharing is not a one-and-done type of deal. You are in it for the long term! Once you buy shares in the aircraft, you will be bound to the contract and its clauses, which may indicate the time period before you are allowed to dissolve your shares.
You may also be required to pay a standard monthly maintenance fee and any of the other surprise costs that may come from owning a heavy machine that may be prone to breaking down.
Fractional Ownership or Group Share: Cost Breakdown
Initial Share Price: Single-engine piston planes: £5,000–£22,000 per share. Turboprops: £50,000–£200,000 per share.
Added Cost: Monthly maintenance, insurance, hangar fees proportional to share size. Operating costs (fuel, hourly reserves) are billed as you fly.
CAA Requirements: Groups of three or more must register with named trustees.
Typical Flight Allocation: 1/16 share might equate to ~50 hours/year.
RENTING AIRCRAFT
Finally, for those who want to enjoy aviation on their own time without worrying about exorbitant costs, the rental option may be your best bet.
Comprehensive flight schools like Sherburn have their own fleet, and provide aeroplanes which you can hire on an hourly basis.
You can pay-as-you-fly whenever you like, so long as you make all the prior bookings in advance. Renting is an excellent option for enthusiasts who live busy lives and don’t have enough time to enjoy the full benefits of sole ownership or group sharing.
Renters typically pay per hour for aircraft like the Cessna 152/172 or PA-28. In the UK, rates often range around £150 per hour, which includes fuel and insurance.
Pros of renting aircraft:
- No large upfront costs
- No hangar, maintenance, or insurance responsibilities
- Low financial risk
- Great for occasional flyers
Cons of renting aircraft:
- More expensive per hour if flying frequently
- Limited to the availability of club aircraft
- Less control over scheduling and aircraft condition
WHY CHOOSE SHERBURN AERO CLUB?
Sherburn Aero Club, which has been operational since 1964, is the ideal place for most of your training and flying needs.
It is one of the largest flying clubs in the North of England and also one of the largest in the country.
With a large fleet of new aircraft and an airfield refurbishment with new runways, hangars, and an extended clubhouse, we cater to brand new flyers who have just started their journey to the skies, as well as seasoned flyers who have been operating aircraft for decades.
If you wish to begin your career in aviation or wish to take to the skies as a hobby, Sherburn’s flight training school offers private and commercial licences, along with pilot medicals to ensure a smooth journey going forward.
Sherburn also offers a dedicated day-long Flight Radiotelephony Operator’s Licence (FRTOL) course for those wishing to get the certification, running on the first Sunday of every month.
For those who wish to experience the thrill of a flight for fun or to help fuel their aviation dreams, Sherburn offers experience flights for the newbie, as well as the veteran.
The flight experience option is also available for people who wish to take to the skies for special occasions, even if they aren’t into aviation in the long run.
In addition to that, if you are looking for a hangarage for your own aircraft, need servicing or repairs, want to buy a new aircraft or aviation equipment, or are just looking to enjoy and watch the aircraft, Sherburn Aero Club is the place to be.
Call us on 01977 682 674, email us at flightdesk@sherburnaeroclub.com, or message us via our online contact form for more information on owning a small plane.
Photo by Lorin Both on Unsplash
