Private Aviation Financial Analyzer

The Annual Cost Summary displays the total cost of ownership for each model at your current usage level (flight hours per year). This includes all operating expenses, fixed costs, capital costs amortized over your time horizon, and tax benefits where applicable. The cost-per-hour metric makes it easy to compare efficiency across different models.

The breakeven point is the annual flight hour threshold where one ownership model becomes less expensive than another. For example, if the breakeven between Charter and Fractional is 300 hours, it means that at 300 hours per year, both options cost approximately the same. Below 300 hours, Charter is cheaper; above 300 hours, Fractional becomes the better option.

The Time Horizon represents how long you plan to use the aircraft (in years). It matters because it affects how acquisition and depreciation costs are amortized. A longer horizon spreads these costs over more years, which can make whole ownership more attractive. For fractional ownership, it impacts the resale value calculations. Adjust this slider to match your actual ownership plan.

Fixed costs are expenses you pay regardless of how much you fly (insurance, hangar fees, registration, crew salaries for whole ownership). Variable costs depend on flight hours (fuel, maintenance per flight hour). Charter is almost entirely variable—you pay per flight hour. Fractional combines both fixed management fees and variable flight costs. Whole ownership has both, but can benefit from economies of scale at higher utilization.

For whole aircraft ownership, depreciation can be tax-deductible (depending on your corporate structure and tax situation). The tax shield benefit represents the value of reducing your taxable income by the depreciation amount. It's calculated as: Annual Depreciation × Your Tax Rate. This reduces your effective cost of ownership and is why whole ownership becomes more attractive for higher-utilization operators in favorable tax situations.

The Direct Operating Cost (DOC) is the cost per flight hour to operate an aircraft. It includes fuel, maintenance, crew (for jets), and other direct expenses—but excludes fixed overhead like insurance and hangar fees (for comparative purposes). The DOC varies by aircraft type and utilization level. Understanding DOC helps you assess the true incremental cost of each flight hour.

Charter means you rent an aircraft by the hour from an operator whenever you need it—no ownership or commitment. Fractional ownership means you purchase a share (typically 1/16th to 1/32nd) of an aircraft and have guaranteed access to it for your share of flight hours per year, plus management fees. Fractional is more economical for frequent users (300+ hours/year), while charter suits occasional flyers.

Whole ownership typically becomes the most economical option at very high utilization (700+ hours/year) and when you value operational control and customization. It also may be attractive if you can achieve favorable tax treatment through your corporate structure. However, it requires significant capital, management responsibility, and commitment to justify the investment. Use this tool to find your specific breakeven point.

The Sensitivity Analysis shows how changes in fuel prices or maintenance costs affect your total cost of ownership. For example, if you adjust fuel prices ±50%, you'll see how sensitive each model is to fuel volatility. This helps you stress-test your decision against different market scenarios. Whole ownership is typically more sensitive to fuel and maintenance changes because they have higher variable costs.

Jake Aviation specializes in structuring financing solutions for all three ownership models—charter programs, fractional acquisitions, and whole aircraft purchases. Whether you need leasing structures, loan financing, tax-efficient ownership frameworks, or guidance on program selection, our financing team can help. Visit www.jakenaviation.com or contact our specialists to discuss your specific needs.

Yes! Use the Advanced Settings panel (in the left sidebar) to customize critical parameters like corporate tax rate, cruise speed, fuel price, and maintenance reserves. These adjustments allow you to model your specific scenario more accurately. For complex situations or tax planning, we recommend consulting with our financing specialists to ensure your analysis aligns with your actual cost structure.