Aircraft Shares-WET/DRY???

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bean_ian
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Aircraft Shares-WET/DRY???

Post by bean_ian »

I have been looking around and seen various shares for sale.
They usually talk about it costing ?140 an hour wet. What does this mean??
I understand you pay a monthly fee to cover maintainance, hangerage and insurance etc... so if your group own the plane why does it still cost ?140 an hour to fly it?
Surly fuel isnt that expensive??

Biturbo
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Post by Biturbo »

There are two types of costs involved - fixed and variable.

Fixed costs are incurred whether you use the plane or not - hangarage, insurance. Variable costs are incurred only when the plane is in use - fuel.

Maintenance falls somewhere in between. You'll have to get your annuals done even if it never moves out of the shed, and similarly the more you use it, the more stuff that will need fixing and more quickly you'll be due another service.

The way groups structure themselves is to charge a monthly sub to cover the fixed costs and a per-hour flying charge to cover the variable. Semi-fixed costs such as maintenance may be allocated on some arbitrary basis which may be a) neutral in effect, b) loaded fully onto the fixed element to encourage people to fly as often as possible, or c) loaded onto the per-hour to avoid penalising more inactive members of the group (who are effectively helping pay fixed charges for the rest of us without tying up our lovely plane as a result).

Yes, there are inactive aircraft owners - one of the privileges of ownership is that you don't have to use the thing if you don't fancy doing so.

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