The Rancho Santa Fe Unit of Rady Children’s Hospital AuxiliaryÂ hosted their annual fundraiser “Bohemian Nights” at the Grand Del Mar.Â The evening began withÂ Specialty Cocktails,Â Silent, Mini Live AuctionÂ in the beautiful Manchester Ballroom.Â Afterwards theÂ Main ballroom featured sit down dinner, live auction andÂ featured guest, David Garrett, an International Rock & Classical Musician.Â Schubach Aviation was proud to be a part of this wonderful eventÂ assisting inÂ raising funds for the emergency room at Rady Children’s Hospital.
Schubach Aviation manages an extensive fleet of aircraft for on-demand charter services. For those who fly privately a handful of times per year, charter is often the most fiscally practical option.
When youâre in the air and on the move more frequently, however, full ownership may make more financial sense. The Sherpa Report, for example, recommends that anyone flying moreÂ than 400 hours per year consider whole ownership over fractional ownership or on-demandÂ services.
Acquisition Costs are Just the Beginning
The investment in an aircraft is substantial and encompasses much more than the initial asset purchase. Some owners are unprepared for additional operating costs that come with an aircraft, such as hangaring, routine maintenance, crew training and certification, salary and benefits for flight crews and maintenance technicians, insurance, inspection fees, and a host ofÂ other expenses required to keep your aircraft operating in compliance and maintained at peakÂ performance.
The single biggest cost of aircraft ownership proportional to use is fuel. Beyond that, there are maintenance costs. Personal aircraft require routine and repetitiveÂ maintenance to remain in compliance and in an airworthy status for flight.Â Additionally, there are costs for frequent washing and waxing to protect the aircraft from the elements. Even though aÂ plane is housed in a controlled environment when at Schubach, operating exposure to weather, in-flight exposure to rain and ice, and parking on the ramp away from base all takeÂ their toll on the finish. A quality aircraft detailer is a necessity, but also an additional cost. All of these costs need to be taken into consideration before purchase.
Offsetting the Cost with Schubach
One of the most advantageous strategies for mitigating costs associated with aircraft ownershipÂ is to place it on a charter certificate. This will put the management and operation of the aircraftÂ in the hands of a professional management team to generate revenue from under-performingÂ assets on charter flights when not in use by the owner.
One of the major benefits of chartering your aircraft is the hourly rate paid back to the owner by the charter company for use of the aircraft. The aircraft owner can set the maximum amount of charter flight hours they would like per month. In many cases the revenue earned from charter hours will more than cover the operating expenses of the owners personal flights.
Part 135 Certification Benefits
Placing an aircraft in FAR Part 135 service with an experienced, professional managementÂ company like Schubach Aviation alleviates many of the regulatory compliance, maintenance,Â and operational expenses normally assumed by private aircraft owners. The FAA charterÂ conformity process, in compliance with Federal Aviation Regulations, provides for a more demanding maintenance schedule. In addition, a professionally trained and FAA Part 135 certified flightÂ crew allows owners to make their aircraft available for hire when not in use for personal travel.
Flight operations, maintenance and training are held to a higher standard under FAR Part 135Â where the aircraft is offered to retail clients as an on demand charter basis than it is underÂ traditional FAR Part 61 and Part 91 standards, where the aircraft is not chartered. For many aircraft owners this higher standard provides additional peace of mind.
A company like Schubach already manages a fleet of aircraft – possibly even models similar toÂ your own â so it may already have the necessary technical manuals, trained pilots, and experiencedÂ maintenance technicians. This could result in significant savings on crew training, mechanicÂ school, salaries and benefits packages, and pre-and post-flight maintenance. The overall cost of ownership is much lower with this option.
Return on Investment
Creating a steady stream of income to offset owners’ expenses reduces personal financialÂ liabilities. Aircraft owners can easily expect to receive 28% to 35% ROI under a professionalÂ charter management agreement with Schubach Aviation.
Further, there are four tax exemption strategies during the first year of use for aircraft owners.Â The most advantageous is the sales tax avoidance exemption for charter services. TheÂ California Franchise Tax Board allows owners to avoid sales tax if the ratio of charter serviceÂ exceeds personal use. If at least 51% of your aircraftâs flight time during the first year’s useÂ is documented for charter services, sales tax is waived.
We are not accountants. Schubach does not assume responsibility for the exemption strategy used by the owner and does not file taxes for the owner. We will, however, provide documentation of flights through flight logs and other verifiable documentation to the owner. With decades of experience, Schubach Aviation can recommend an expert in tax and tax law if the owner would like more specific information on tax implications associated with aircraft ownership.
Schubach compiles data collected from flight logs comprising the details of every flight, bothÂ owner’s use and charter flights. The flight logs are a permanent record of each flightÂ containing flight time aloft, called Hobbs time, which is a time counter used whenever aircraft engines areÂ running (including taxi plus flight time).
The flight log data is kept for every flight and computedÂ for charter invoices, crew flight and duty time, maintenance tracking, and tax information, summarized inÂ hours once the trip is completed. Schubach Aviation provides the tax or legal professionalÂ to prepare the tax exemption filing, and all the documentation from the flight logs to assist in theirÂ accurate filing on behalf of the owner. This added benefit to the owner is an importantÂ service, alleviating the additional record keeping burden of keeping flight records during the first year to fileÂ for exemption from sales tax, andÂ afterwards to amortize the asset.
Your Aircraft, Professionally Managed
For owners who want to have a professionally managed asset without the burden and timeÂ associated with the necessity of regulatory compliance, maintenance, crew training, recordÂ keeping, and aircraft detailing, Schubach Aviation offers a turnkey solution. We offer discountsÂ on fuel, crew training, insurance, hangar rent, navigation chart subscriptions, and parts for requiredÂ maintenance, to name a few of the many ways that we can lower your cost of ownership. Schubach Aviation is a one stop source to effectively manage anÂ owners’ jet, providing a simplified solution to the complexity of aircraft ownership.
Our comprehensive approach includes consultation during acquisition, operational support, andÂ certification for Part 135. These services ease the buying process, saving you the time andÂ resources in acquiring and operating an aircraft. We are always happy to offer a consultation for any of your flying and ownership needs.
For many travelers, flying privately seems like a hassle-free, comfortable form of travel. Not only is the experience of flying charter comfortable and personalized, but you can also dictate your own schedule, avoid long security lines, lost baggage, and other traditional airport difficulties.
The the decision to charter a flight, however, is not so simple. There are many charter companies and private aviation options available, yet few make critical safety information readily available to charter customers. While a website featuring fancy jets, claims of high safety standards and gold-standard certifications add peace of mind, there are some key questions you should ask in order to feel comfort in the decision you make.
Asking these four simple questions will give you the information you need to make the safest choice.
1. Â Â Â How long has this company been in operation?
It is important to find a company with experienced employees who have an unblemished safety record in the private air charter industry. Ask whether the charter company is incident and accident free. If there has been an incident in the past, find out what has been done to remedy it. The Federal Aviation Administration (FAA) is a good resource for these types of records.
Â For newer companies, make sure to inquire about their key employees backgrounds. Â Ask how long the owner and officers have been in the aviation industry. Many companies also offer pilot biographies that give information about their past experience.
2. Â Â Â What is the total time and type of training for both pilots?
Confirm that you are flying with experienced pilots who have completed appropriate training and aircraft proficiency. At the very minimum, your pilots should have at least 4,000 total flight hours.
Also ask about company training that goes above and beyond FAA requirements. Â Company mandated supplemental training programs reinforce pilotsâ skills and decision-making processes, as well as the entire companyâs safety culture.
Â 3. Â Â Â Can the company provide other companies or individuals for referrals?
This is a very important question to ask. A conversation with others who have used the charter company in question is the best way to find out what type of service and overall experience you can expect.
Did they trust the crew? Enjoy the overall experience? Would they put their family on one of the companyâs jets again? Answers to these questions from a third party are very telling and are a valuable resource for any potential charter passenger.
4. Â What is the companyâs safety culture?
Ask the charter company which is more important to them – always pleasing the customer, or making the safest decisions?Â While many companies rely on the mantra âthe customer is always right,â this solution is not necessarily black or white in aviation.Â While, of course, comfort and convenience are a priority, safety must come first.
Pilots are trained to make appropriate safety calls, and responsible charter companies support their pilotsâ decisions. Most often, discrepancies between the pilots and passengers center around weather issues – visibility, wind, and freezing temperatures, among others. Even though you may feel like the weather doesnât seem too extreme, the pilot is the ultimate decision maker when it comes to determining whether itâs safe for an aircraft to land or depart.
Please do not hesitate to ask us any questions you may have when planning a private charter flight with Schubach Aviation.Â We are happy to share any information you may be looking for about our flawless safety record, experienced pilots, and personalized service.
One of the most common concerns people have when hopping on an aircraft with propellers is that it lacks the safety of a jet without propellers. Why the fear? Perhaps the concern is related to the additional noise produced by turboprops. Could it also be that the sight of a propeller on an engine renders a perception of an amateur or more antiquated aircraft? Well, letâs clear the air for those who are unsure.
Myth Busted: Turboprops are equally as safe as jet engines. In fact, turboprops and jets both have turbine engines and are virtually the same thing.
What is the difference between a turboprop and a jet engine?
Turboprops and jets are both built with turbine, or jet, engines. Jets have turbine engines encased with fan blades while turboprops have a propeller on the outside. This is much different than with piston engines, which also have propellers, but are much different mechanically. Turbine engines are safer and more reliable than piston engines, which are typically found in smaller aircraft.
What are the advantages of turboprop aircraft?
Turboprops might be a little louder, but they are actually safer than jets when going into smaller runways. Why? It is related to the turboprops capabilities under short runway conditions. One of the things we look at when planning a flight is something called âbalanced fieldâ. When you get up to takeoff speed, if something were to go wrong, how quickly could you stop? In a nutshell, this is what we consider when talking about âbalanced fieldâ. Turboprops are able to respond and stop much more quickly because the propellers provide extra drag. Thus, the propellers help the aircraft stop when needed.
What is the real safety question?
Now that we understand that a turboprop is a turbine (or jet) engine with a propeller on it, letâs talk about the questions I like to ask.
The real question. Whatâs safer? The turbine or the piston engine? I believe in turbine engines and two engines on an airplane. Turbines and the redundancy of two engines present much more of an assurance of safety than pistons and single engine aircraft. This is also the subject for another blog post.
Have I missed any of your concerns? Would you like to learn more about this? If so, please let me know in the comments section of this blog post.
Photo Credits: iStockphoto
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