Popularity of Aviation Has Continue

¶ … popularity of aviation has continue to be brought to the forefront. Recent evidence of this can be seen with the total number of pilots in the United States, which is: 613,746. ("U.S. Civilian Airman Statistics," 2008) The main reason, why so many are engaged in their chosen hobby or career path, is the passion that they have for aviation. Where, they will feel a sense of freedom when they are behind the controls of the aircraft. This passion is one reason why many pilots, will often continue flying well beyond, the end of their careers. In my case, I was exposed at an early age to the joy of aviation and became a UH-60 Blackhawk helicopter pilot. After leaving the military, this passion has continued to stir the imagination, to the point that the pursuit of: a commercial single engine pilot certification has become a quest. At which point, the purchase / rental and utilization of a single engine plane will occur. However, given the maze of regulations, surrounding how someone can become a commercial pilot and the cost of purchasing a plane; requires examining how these objectives can be achieved (given my unique situation). To determine this we will analyze how the license can be obtained, the cost of owning / renting an airplane and the intended use of the aircraft. Together, these different elements will provide the greatest insights, as to how I can achieve the objectives of: obtaining the license and selecting / maintaining the aircraft.

How to Obtain a Commercial Single Engine Pilot License for a Single Engine Plane

Prior to attending any kind of flight training school, everyone is required to meet some of the basic FAA requirements to include: being fluent in reading / understanding English and they must receive a medical certificate from an approved physician. During the physical, the doctor will attest to the person's physical abilities to endure flight training and the rigor of flying. Once this takes place, physician that is conducting the examination will more than likely give you a: Student Pilot Certificate. This will state the different medical restrictions that the student will be required to follow, when operating the aircraft. ("How to Get a Private Pilots License," 2010) In my case, the previous experience with English and the medical certificate would be a given. (Federal Aviation Administration, 2009, pp. 15 -- 17)

Regardless of previous experience, to obtain any kind of pilot's license, the FAA requires that everyone must complete their training through one of two different schools (Part 141 and Part 61). A Part 141 school is when there is a structured curriculum for obtaining the license. Where, you will go through a detailed course of instruction and check rides, before moving on to actual flight training. With a Part 61 school, there is more flexibility that is given to the student. What happens is, in these kinds of schools require: that students must follow a basic curriculum that is outlined by the FAA. At which point, the school has the option of mixing up how various blocks on instruction will be presented to the student. In general, Part 141 schools will requires only 35 hours of instruction before taking the first check ride; while Part 61 schools will require 40 hours. However, this will all depend upon how quickly you learn, where it is not uncommon for some students to require at least 60 to 70 hours to reach this level. This is important, because depending upon how you learn, the kind of school you, will determine how quickly you be for final examinations and be able to help with possible financing. (La Patch, 2010)

The Part 141 School

Given my previous flight experience, I will be attending a Part 141 school. This is because the structured curriculum would mirror the kind of flight training I received in the military. Therefore, taking flight instruction that can mirror how I originally learned the material will help to serve as a refresher course and provide any kind of updates. As a result, the time to finish the qualification will more than likely be faster and more effective using this type of flight school.

Experience

My unique experience as UH-60 Blackhawk helicopter pilot, gives me a background in aviation, which can be useful becoming a commercial single engine pilot. Where, the total of: 1,372 flight hours establishes a solid foundation for understanding the principals of flight and how they can be applied, in a variety of weather conditions. This gives me an advantage over other aviation candidates, who more than likely would have to go through an extensive training and years of experience, to equal the expertise / knowledge that I posses. As a result, this will reduce the total amounts of time to receive the licenses.

Requirements for Certification

The previous flight experience that I have in the military means that there are a number of special requirement that must be met to include: passing the practical examination and presenting documentation confirming the total number of flight hours, along with the last rank that was held in the military. If these two conditions are met, the student can go onto specific training that would qualify them for their type of license / aircraft. This would be accomplished, by taking following the specific outlines of FAA regulations to include: passing an instrument proficiency examine on their respective aircrafts, having 10 hours of specific in flight command and receiving an endorsement from a certified flight instructor that the student is proficient on the aircraft. (Office of the Federal Register, 2009, pp. 355 -- 356) In my case, these regulations would not be relevant. The reason why, is because I want to receive my certification for fixed wing single engine aircraft, versus the rotary wing aircraft that I was trained on. This means, that I will have to start with the beginning course of instruction, to receive the type of training, to qualify for this aircraft. This is important, because the qualifications and requirements to operate the different types of aircraft can be different. As a result, my previous training provides a good background, yet it is lacking certain aspects. Therefore, I would have to take the full training course to be reintroduced to the basic concepts and learn the specifics of single engine fixed wing aircraft.

Steps for Certification

Once you have received your student certificate, after the medical examination, there are several different steps that must be followed, in order to receive your private and commercial pilot certification. To include: completing a comprehensive ground school course, a written examination, complete 30 to 40 hours of flight time with an instructor and complete the check ride. Once these different requirements have been met, you will be given a rating as what kind of weather conditions you are allowed to fly in.

Schools and Tuition

In general, the costs for attending flight school can start at $4,000.00 and will go as high a $15,000.00. However, the total cost of tuition will depend upon the school itself and the cost of fuel. This is why there is such a vast range, as to the total costs of obtaining your commercial pilot's license. ("How to Get a Private Pilots License," 2010)

There are a number of different schools around the country that offer a comprehensive commercial flight training program. A few of the most notable would include: the U.S. Flight Academy, the MVP Aero Academy and Mc Air Aviation. ("Become a Pilot," 2010) ("141 Self-Examining Authority," 2010) When you look at the different flight schools, it is clear; that while they do offer ground training, the course of instruction will vary depending upon the school. Where, all schools may require the student to become a certified private pilot, before going onto other their commercial pilot courses. This is because FAA regulations require: that everyone has their private pilot's license, before moving onto their commercial pilot's license. ("GI Bill Flight Training," 2010) The U.S. Flight Academy builds off of the previous instruction that was received in private pilot training. Where, the course is broken down into two different elements to include: ground training and flight training. Ground training would cover the following areas of study to include: airplane systems, aero dynamics, use of performance charts / effects, night / high altitude flight, meteorology and a careful analysis of the Aeronautical Information Manual (AIM) / National Airspace System (NIS). Flight training would include the following areas: pre / post flight procedures, airport operations, take offs / landings, performance maneuvers / navigation, emergency operations and special operations / commercial scenarios. (Commercial Training Program," 2010) This is important, because it shows how the school has the commercial pilot certification broken down, into traditional methods of studying and learning.

The MVP Aero Academy follows a similar protocol as the U.S. Flight Academy, the difference is that they have a large variety of aircraft to choose from and have FAA certification exams on the premises. Where, those who are truly passionate about aviation can receive their Aviation degree through their exchange program with Utah Valley State College. This is important, because this flight school is larger and has a variety of programs to offer. If at some point, someone decides that want to study other forms of aviation, this school would be ideal at learning for much as possible. ("MVP Accomplishments," 2010)

Mc Air Aviation offers students the ability to complete most of the course work, through a self-study format. Where, students will complete the basic written curriculum and will then complete the in flight requirements with their certified instructors. At which point, the student can be able to receive their flight certification. This is important, because it provides other options in studying and obtaining certification, as those with busier schedule can be able to balance this kind of instruction with their lives. ("141 Self-Examining Authority," 2010)

Another option is to go through the Airline Career Pilot Program. Under this program, there is assistance for students who would like to qualify for private pilot and commercial pilot certification (the Commercial Pilot Program). This program will help you to receive your private pilot's certification first and then you can begin working on your commercial pilot's license. This is an important distinction to remember, as a variety of schools may offer information about the commercial pilot program. Yet, they fail to tell the students they need to have their private pilot certification. However, with this particular 141 school the costs are higher for obtaining certification, with the price climbing to as high as $50,000. The reason why is because of shortened time to obtain both licenses. ("Commercial Pilot Program," 2010) For those who are not as concerned about the costs and would like to receive their pilot's license right away, this kind of flight program / school would be ideal.

There are a wide variety of Part 141 schools to choose from. This is significant, because the different formats allow the student to learn, along the required guidelines laid out by FAA. While at the same time, giving students more choices as to how they quickly they want to obtain their certifications. Where, those programs that cost more money, could mean that the tuition costs may increase

Financing

Since I am a veteran of the armed forces, I am eligible for tuition assistance under the GI Bill. Where, the GI Bill will cover various aspects of helping to pay for some of the costs of flight school. The way it works is: the GI Bill will pay for 60% of tuition cost, of a commercial flight certification program. Like what was stated previously, in order to be eligible for this license the student must hold a private pilot's license. The GI Bill does not cover the cost of obtaining this license. Second, any kind of program that is eligible must be through a Part 141 school. That being said, the GI Bill does have waivers that can help pay for the private pilot certification. Under the program, those people who are currently enrolled as full time students, by enrolling in at least 12 credit hours a semester, will be eligible to receive the money in the form of $1,000.00 per month. This is used to pay for tuition, the cost of living and books. Since I am currently enrolled in college full time, this would allow me to help obtain my private pilot license. At which point, I would be eligible to receive the 60% tuition reimbursement, from the GI Bill. ("GI Bill Flight Training," 2010) ("Veteran Affairs," 2010)

A second option for financing would be to use the various flight school tuition assistance programs. This is where they will look at: your annual income, total amounts of debt and the courses you are taking. At which point, they will create an affordable payment plan, to pay for those expenses that are not covered under the GI Bill. This is significant, because it can help provide additional options of help to cover the costs of commercial pilot's license. ("Financing," 2010)

Clearly, the best option for someone with my experience and available financing would be to obtain my certification through a Part 141 school. This is because, these schools are eligible for financing under the GI Bill and they can mirror some of the same kind of flight training that I received, for rotary aircraft in the military. That being said, I will have to obtain my private pilots license, to be eligible for the commercial pilot's license. Under the provisions of the GI Bill, I would be able to receive 60% paid towards the cost of: tuition, room and board for a commercial certification. The private certification would not be eligible, for traditional financing under the GI Bill. However, if I maintain at least 12 semester credit hours, I can have a tuition reimbursement sent to me, to pay for the above mentioned expenses as a full time student (under the GI Bill). This means, that the cost of obtaining the private pilot certification can be reduced, to a certain extent as well. Another option would be use some of the financing choices that many schools have available. This is where they will look at: your income, debt and other factors to help create affordable financing, to pay for additional out pocket tuition expenses. The above two financing options are important, because they can be used to spread out the total upfront cost of receiving a commercial pilot's license

The overall costs of obtaining certification will generally range between $4,000.00 and $15,000.00. In some cases, these costs can increase dramatically depending on the pace of instruction and fuel prices. In general, most 141 schools will provide a structured curriculum that all students will follow. However, in recent years more schools have begun, to allow students the option of having a self-study course. This is important, because this flexibility can be useful in structuring the training, at time that will correlate with my schedule.

The Cost of Owning / Renting an Airplane

Once the commercial pilot license has been received, the focus will be shifted to the aircraft itself. In this particular case, we will be purchasing or renting a single engine plane for personal use. To determine which airplane is the best value, we will be comparing the total cost of three different pieces of aircraft and the various financing options available.

Types of Aircraft to Purchase

The three different aircraft that we will be examining include: the Piper Archer III, the Cesena 172 Sky Hawk and the Mooney M290. The Piper Archer III has: 180 horsepower for takeoff, tri / fixed landing gear, it weighs 2,500 pounds, the wing span is 25 feet / 6 inches, the total seating capacity is four and the aircraft has a baggage capacity of 200 pounds. The base price for purchasing this aircraft would start at $188,900.00. ("Piper Archer III," 2010) The Cesena 172 Sky Hawk has variety of specification to include: a 195 horsepower engine, it has a maximum speed of 122 knots, a certified ceiling of 14,000 feet and it has a range of 696 nautical miles. ("Sky Hawk Performance," 2010) The cost of purchasing this aircraft would be: $182,500. ("2007 172 Cessna Sky Hawk," 2010) The Mooney M290 has: a 290 horsepower engine, a useful payload of 900 pounds, dual batteries and it contains Moritz engine gauges. The cost of purchasing this aircraft would be: $219,500.00. When you compare the three airplanes, it is clear that the Piper Archer III and Cesena 172 Sky Hawk have smaller engines as well less features. However, the upfront cost for purchasing either plane is less in comparison with the Mooney M290. ("1999 Mooney M290,") Where, this aircraft will have more features and more powerful engine. That being said, any one of the different planes would work well for private usage. Therefore, reasonable prices to pay for the plane would be between: $182,000.00 to $220,000.00.

Renting the Aircraft

The cost of renting the aircraft will depend upon the company that is renting the plane. In general, there will be more restrictions placed on flight time, qualifications and the pilot log hours. Where, the company will want to see that the pilot has: at least a minimum of 60 hours in the aircraft and at least 20 hours flying solo. The licensing standards are less stringent for renting aircraft, as private pilot's certification is required. These standards are important, because if we choose to rent the plane vs. purchasing it, there will obviously be more requirements that would have to be met. (Bowman, 2010) The cost for renting the aircraft without a pilot; will depend upon the location that you are renting the plane from. In general, the cost for renting the Piper Archer III and the Cessna 172 Sky Hawk would be: $154.00 per hour (for the Piper Archer III) and $124.00 per hour (for the Cessna 172 Sky Hawk). The rental costs for the Mooney M290 would increase to $175.00 per hour. On the surface, this appears to be a viable option for renting the aircraft. Yet, the hourly costs can increase the amount that you are paying to use the aircraft dramatically. As a result, many businesses and pilots have come up with an alternative solution, owning / leasing a certain amount of time on the aircraft. (Szurovy, 2006, pp. 1 -- 11)

Owning / Leasing Time on the Aircraft

A problem that occurred with many private aircraft owners is: that they would make a large capital investment in the aircraft. For some this is troubling, because the cost of maintaining the plane and the initial upfront costs are difficult to justify. Especially, if the plan is going to be used a certain number of hours per year (such as: 200 hours). As result, many of these individual and businesses have begun offering fractional ownership of the aircraft. This is where different individuals will form an ownership / lease sharing agreement. Where, each party will agree to pay a specified amount, for their use of the costs of maintaining the aircraft and a stated percentage towards the actual purchase. This means that if someone is seeking to purchase a plane that costs $210,000.00, they can be able to split this cost with others who have similar goals and ideas for the aircraft. For example, using the $210,000.00 to purchase one plane, six different individuals or organizations could form partnership, to lease a certain amount of time. Where, they would contribute a stated amount for the aircraft and for the maintenance. Using six different partners that are leasing time on the airplane, the total upfront investment would be $35,000.00 per party. Where, the initial upfront investment in the aircraft is less, helping to justify the costs of purchasing the plane and maintenance This is significant, because it shows another option that can be utilized as way to reduce the cost of the plane, while at the same time being able to have use of it on a regular basis. (Szurovy, 2006, pp. 1 -- 15)

Clearly, there are a variety of options when it comes to purchasing or renting / leasing aircraft. If someone decides to purchase one of the above mentioned airplanes, they can expect to pay initial upfront costs of: $182,000.00 to $220,000.00. Renting the plane, can be cost effective, however, the hourly rates and the requirements for renting the aircraft can become expensive as well as time consuming. The reason why is because of the high hourly rate that is charged for usage and then different companies will have a variety of pre-requests that must be achieved prior to renting the plane. As a result, this option would work most effectively for flying the different aircraft, to determine which one would work best for our situation. The ability to form partnerships or lease blocks of time, on an aircraft, is an attractive option. This is because; the long-term investment costs for using and investing in the plane fall dramatically. As each of the different partners will contribute a certain amount of towards the plane for it various expenses. This option is important, because it can be used as way to cost effectively purchase and maintain the desired aircraft, without having to spend a small fortune to do so.

Financing the Aircraft

Earlier we touched on leasing / partnerships, as an effective way of helping to purchase and finance the cost of the aircraft. However, there are more traditional methods for financing the purchase of the aircraft the most notable would include: traditional financing options. There are several ways that these options can be used to finance the purchase of the plane such as: a leverage aircraft lease and airplane loans. A leveraged aircraft lease is when a finance company is purchasing the aircraft directly from the manufacturer. At which point, they will offer a variety of leasing options, through syndicate of different financial institutions. The idea is that these different banks can offer various leasing packages and terms, to meet the different needs of the individual or organization. Airplane loans are when the lender will provide financing to cover the cost of purchasing the aircraft outright, by providing an upfront loan to the individual or the organization. It works similar to a car loan, where the financial institution will use the plane as collateral for the loan. This is significant, because it shows how there are variety of options available for financing the aircraft, where there are a number of choices that the individual or the organization will have, to ensure that the costs remain affordable. (Wood, 2007, pg. 155)

The Use of the Aircraft

Like what was stated previously, the aircraft will serve for personal use. This means that there will be specific costs for maintaining and using the aircraft on a regular basis. To determine the total costs and how they could possibly be mitigated, we will examine all of the different expenses associated with owning a plane to include: storage, maintenance, and record keeping.

In some cases the cost of maintaining and operating an airplane can become very expensive. When you consider factors such as: the volatility in fuel prices, the high price of labor / parts, insurance and the storage of the plane; it means that if these expenses are not carefully monitored, the cost of maintenance could skyrocket. In financial terms, this would cause the overall investment in the airplane to become a loss. Where, there is no way to effectively justify the large recurring costs. At which point, most people will often become frustrated with aviation, as they believe that they can't afford the cost of maintenance. As a result, a strategy must be implemented to help mitigate the possible effects that maintenance costs could have on your finances.

When you examine the first element of the costs for the airplane, storage, is a major issue that will have that will have to be accounted for. This is because the investment in the airplane represents a significant amount of: time, effort, money and desire. Where, the place that the plane will be stored will determine the possible resale value. This is because a number of factors could affect the operation and security of the plane. The most notable would include: air navigation aide, air traffic control facilities, fencing, the availability snow removal / deicing equipment, fire / rescue facilities, fueling areas, fixed base operators and the availability of service roads. These different factors are important, because they will determine if you can be able to maintain low costs for the plane. As any one of these them, could have an effect on the maintenance or insurance costs of the plane.

Storage

When selecting the different possible storage options, you want to examine the facility / airport and the amenities that it offers. Those that have more services will generally cost more, because they can offer owners a number of different choices and options. While at the same time, you have those airports / facilities that will offer fewer services and are a fraction of the costs compared to others. That being said, the cheaper facilities offer the greatest possibilities for cost increases, because of the possible situations that could occur, damaging the plane. This is why you want carefully evaluate the facility and the airport itself. Once this is completed, you want to examine the different kinds of storage options that they have available. Two most the most popular options would include: ties downs and hangers. A tie down is known as open air storage. This is when the plane is stored out in the open, where the plane is tied down to the tarmac. A hanger is closed air facility; that will protect the plane against the various elements. In general the costs for tie downs are cheaper in comparison with the use of hanger. (American Planning Association, 2007, pg. 296) This is significant, because it shows how the storage options of the airplane will play a major role in helping to protect the value of the aircraft.

Maintenance

The maintenance of the airplane will depend upon a number of different factors including the cost of: parts, fuel and insurance. The cost of parts and fuel will play an interconnected role that will be tied to increases in raw material prices. Where, the increase in any of one of the two will have a ripple effect upon the other. This is because various raw materials are used in the production of different part at the manufacturer. Delivering these parts will cause the costs of maintenance to rise; as there are higher fuel costs to: transport them to the location. At the same time, fuel prices will cause the cost of flying to increase dramatically. When you put these two elements together, it can mean that the costs of maintaining an airplane can become very volatile at times.

Another factor that needs to be accounted for as part of the maintenance of the plane is insurance. While, this may seem out place for this part of the discussion, the reality is that insurance costs can have a major impact on the maintenance costs. What happens is most airplane insurance will cover the transportation of the airplane to the facility, storage and when you are using your airplane in locations where it can properly take off / land. However, there are also different exclusions that insurance will generally not cover to include: damage if the aircraft was seized and normal wear / tear. It is also important to note, that many policies will only cover the airplane while it is in use or in motion. Those planes that are not in use or no in motion may not qualify for a claim, with these kinds of exclusions. This is significant because it shows how what the insurance will covers can vary. As the different exclusions may or may not apply at certain times. As a result, the way the plane is stored and maintained, will play a role in determining the overall levels of protection that will be required. (Speciale, 2003, pp. pp. 166 -- 168)

Record Keeping

For any kind of maintenance procedures, Federal Air Regulations require that various records must be recorded and updated on a regular basis. What happens is the record keeping system requires: that every part that is installed or removed from the aircraft, must be recorded and updated when such changes occur. Where, the different parts that are being used / stored must be: segregated from one another, permanently marked, and catalogued (for the life of the part). If a part is changed in the airplane, the supervisor of the maintenance team will make the appropriate changes to the database. During any kind of FAA inspection, these different maintenance records must be made readily available. There also must be documentation complying with the standards of periodic inspection of the aircraft. This is significant, because it shows how another part of the process of maintaining the aircraft is ensuring that the record system is in compliance, with Federal Air Regulations. In my case, this could require increased amounts of time and cost, to ensure that I am following the various FAA guidelines. (Federal Aviation Administration, 2008, pg. 17)

Costs

Like what was stated earlier, the costs of owning an airplane can vary dramatically on a number of different factors. For simplification purposes, we will compare the costs of maintenance by examining the total cost of owning the plane individual and the total costs of purchasing a select amount of time on the aircraft. This will be achieved by examining the monthly fixed costs and the total cash outlay. If one person decides to purchase the plane and maintain it, the cost will obviously be dramatically higher. Where, the fixed costs of maintaining the plane will average $4,065.00 per month. This is accounting for an airplane that would cost about $195,000.00. When you compare this to purchasing a certain amount of ownership on the plane, the costs will increase even more dramatically. Evidence of this, can be seen by comparing the costs associated with someone investing $65,000 in the aircraft. If there were a total of three different partners, who purchased a certain amount of time, the fixed cost would fall to $1,352.00 per month. The bellow table compares and highlights the underlying costs of owning the plane individually vs. purchasing a set amount of time. ("Can I Really Afford an Airplane.," n.d.)

The Annual Costs of Owning or Purchasing Time on the Aircraft

Ownership Options

Upfront Investment / Cost

Annual Maintenance Costs

Individually Owing Aircraft

$195,000.00

$4,065.00

Purchasing Time (3 Partners)

$65,000.00

$1,352.00

("Can I Really Afford an Airplane.," n.d.)

Obviously, there are a number of different factors that must be considered, when using the aircraft. Where, the amenities of the airport / facility will determine the security of the aircraft and the costs of storing the plane. The kind of option that is chosen for storage (open air / closed air storage) will play a secondary role in storage costs. Next, you have the maintenance of the aircraft, where a number of different factors could affect the costs including: parts, fuel and insurance. Where, the volatility of these three factors will determine, if the cost of maintaining the plane is stable or it begins to see sharp increases. Then, you have the record keeping procedures for maintaining different parts and updating any changes, in accordance with Federal Air Regulations. Together, these different elements can cause the underlying monthly costs of maintaining an airplane to become very expensive. In general, someone who purchases a $195,000 airplane and maintains it themselves can expect to pay monthly maintenance costs of $4,065.00. Those who purchase time on the aircraft with three other individuals or organizations; will see monthly costs of $1,352.00. That being said, it is important to remember that these costs will vary from location to the next and will depend upon the costs of raw materials. This means that there will be times; that these costs could climb and maintain this rate for several months at a time. This is significant, because it highlights one of the biggest challenges of owning an airplane, where the maintenance costs can begin to grow exponentially if they are not controlled.

Specific Recommendations

There are a wide variety of options for becoming: licensed as commercial pilot, purchasing the airplane and accounting for various costs associated with maintaining it. Given the fact, that I have previous experience in the military with rotary aircraft, means that I have a basic background in aviation, which should help streamline the process. However, since it has been nearly 20 years that I was in the Army and I want a fixed wing certification, means that I would first have to receive my private pilot's license and then receive the commercial pilots license. The overall costs for obtaining these certifications will be around $15,000.00. In order to be eligible to receive any kind of financial assistance from the GI Bill, I would be required to attend a Part 141 flight school. There are a number of different options that I would have as far as the course of study is concerned. The one that would provide me with the most flexibility is the self-study course being offered by Mc Air Aviation, where they allow you to study the different classroom requirements, in the form of a self-study module. This is significant, because the program that is being offered will allow the flight training to work well with may schedule.