da42 lease

Any DA42 related topics.

Moderators: Rick, Lance Murray

Post Reply
iceathlete
1 Diamond Member
1 Diamond Member
Posts: 3
Joined: Tue Jul 31, 2018 5:58 am
First Name: ryan
Aircraft Type: OTHER
Aircraft Registration: n56qw
Airports: kbtf

da42 lease

Post by iceathlete »

Theres a need for a twin for a local flight school near where I live.

Do you know what a dry lease would typically run for a flight school that would fly the plane 500hrs a year, take care of all maintenance, less engine and prop overhaul? Just looking to get an idea of cost of ownership with a leaseback based off of Diamonds estimate of less than $50/hr MX for a 2000hr cycle. Thanks in advance
User avatar
Colin
5 Diamonds Member
5 Diamonds Member
Posts: 2006
Joined: Sat Aug 21, 2010 8:37 pm
First Name: Colin
Aircraft Type: DA42
Aircraft Registration: N972RD
Airports: KFHR
Has thanked: 319 times
Been thanked: 527 times

Re: da42 lease

Post by Colin »

If there is a need where you live, shouldn't they tell you what they are willing to pay? Would a small local flight school really use it 500hrs per year?

You might want to contact Angel City Flyers (or I guess Bay City Flyers is closer to you) and see what they would offer. They have quite a few DA42s on the line.
Colin Summers, PP Multi-Engine IFR, ~3,000hrs
colin@mightycheese.com * send email rather than PM
http://www.flyingsummers.com
N972RD DA42 G1000 2.0 s/n 42.AC100 (sold!)
N971RD DA40 G1000 s/n 40.508 (traded)
User avatar
shorton
2 Diamonds Member
2 Diamonds Member
Posts: 44
Joined: Thu Jan 17, 2013 7:42 pm
First Name: Scott
Aircraft Type: DA42NG
Aircraft Registration: N68MJ
Airports: KSNA
Has thanked: 11 times
Been thanked: 21 times

Re: da42 lease

Post by shorton »

The most common flight school "leaseback" model provides for the flight school to receive x% of the wet rental rate with the rest flowing to the owner. The owner then pays all of the bills (fuel, maintenance, insurance, etc). X is often 15-20%.

Of course, there are other possibilities, but this type of revenue sharing structure is really the only way for the owner to claim active participation and, therefore, avoid the passive activity loss rules of the Internal Revenue Code. There's a lot more to it, but any type of "lease" to the flight school will make the owner a passive participant.
Scott Horton, JD CPA
ATP, FAA Gold Seal CFI, CFII, MEI
https://orangecountyflightinstruction.com
KSNA, Orange County, CA
Post Reply