It’s the holidays folks. Time for tinsel and parties and family and… year-end finances. This month’s theme is all about money, and let’s face it, this topic looms large in the aviation world. It’s a complex web of expenses, decisions, and priorities—enough to make anyone hesitate to dive in. So, let’s simplify it. As you may know, we use the 98 year-old grandmother metaphor to over personify the care, communication, and diligence we go through with our projects.
So here it goes, Grandma: three key areas of aircraft ownership that will undoubtedly impact your wallet— money, money, money.
1. Conservatively Budgeting Operational Costs
Let’s call this one the “fool’s gold” trap. Some flight departments and owners sugarcoat operational expenses, but wishful thinking won’t pay the bills. Go above and beyond when budgeting. Overestimate the costs for annuals, major calendar items, and set aside a “bad day” fund for unexpected maintenance surprises.
To help, we’ve developed the MPR (Maintenance Projection Report)—a proprietary tool that gives clients a detailed roadmap of upcoming maintenance and associated costs. It’s better to overprepare than to be caught off guard.
2. Don’t Step Over a Nickel to Save a Dime
Here’s a scenario we see all too often:
A client asks, “What’s my airplane worth? I’m renewing my insurance and thinking of adjusting the hull value to save on premiums.” While that might seem appealing, they rarely consider increasing liability coverage.
Here’s the thing: undervaluing your aircraft or skimping on liability insurance is a recipe for financial disaster. Always accurately value your aircraft, carry maximum liability coverage, and—yes—just pay the premium. It’s a small price for peace of mind. You don’t want to be in the position where, after a catastrophic event, someone wishes you’d taken this advice.
3. Pay Now or Pay Later
If I had a nickel for every time I said this phrase, I’d be retired on a beach somewhere by now. It’s a universal truth in aviation. Here’s how it applies to you, Grandma:
When you buy the aircraft: Do all the inspections and due diligence thoroughly. Skipping steps now will cost you more down the road.
Throughout ownership: Invest in maintaining the aircraft’s cosmetic condition—buff the paint, apply ceramic coating, replace the carpet. It’s not just about aesthetics; a well-kept aircraft retains value and makes for a better resale price later.
The Bottom Line
Money is a constant in the aviation world, and it pays to handle it wisely. For context, this year alone, we’ve managed over $2 million in maintenance events for our clients. We don’t claim to know it all, but we’ve seen a lot—and we’re here to help and the three principles above are just the beginning.
So, if you (or your 98-year-old grandma) are dancing around the idea of adding a Pilatus to your budget, make sure you’re taken care of.
Happy holidays and safe flying,
Bub