Owning an aircraft is a significant investment, and managing its associated costs becomes a primary concern for every new owner. An aircraft that spends most of its time parked on the tarmac and doesn’t fly for less than 100 hours per year is likely to cause financial losses. But don’t worry; there are ways to monetize your aircraft and turn it into a profitable asset.

An idle aircraft serves no purpose, and that’s why we’ve compiled a list of methods to help you generate income from your plane. Similar to a car, an aircraft is an asset with several avenues to earn a return on investment. There is a constant demand for aircraft, and exploring ways to capitalize on this demand can help you turn your idle plane into a profitable asset.

Earning Money As A Private Pilot

While it is true that as an individual aircraft owner, you can generate income, the Federal Aviation Administration forbids making money by utilizing the privileges of your private pilot’s license.

It’s important to note that all the ways we discuss here assume you require a commercial license or a higher certification to pursue them.

Exploring Lease-Back Opportunities

When it comes to earning money from your aircraft, one of the most common and straightforward approaches is through lease-back opportunities. In this method, you share your aircraft with others in exchange for compensation. Today, we will focus on lease-back arrangements as they offer a practical and mutually beneficial arrangement.

Lease-back opportunities primarily revolve around offering your aircraft to flight schools. If you own an aircraft that is not regularly used and happens to be a popular training platform, such as a Cessna 172 or Piper Archer, leasing it back to a flight school can be an excellent option. This arrangement grants the flight school exclusive rights to operate, maintain, and utilize your aircraft for training purposes in return for monthly compensation.

The Positives

Here are the positives of lease-back opportunities for your aircraft:

1. Maintenance Cost Reduction: By negotiating a lease-back agreement with a flight school, they will usually agree to pay for all maintenance expenses of the aircraft. This means that you can fly your aircraft without having to worry about additional maintenance costs. This can be particularly beneficial for owners of expensive aircraft, as it can significantly reduce the costs of ownership;

2. Frequent Use of Aircraft: When you enter into a lease-back arrangement, your aircraft is made available for use by the flight school or other lessees. This means that your aircraft is likely to be used frequently, which helps to ensure that it stays in good condition and reduces the risk of long periods of inactivity;

3. Revenue Generation: Lease-back opportunities can provide a source of income as your aircraft becomes part of a for-profit operation. Flight schools or other lessees may pay you regular fees for the use of your aircraft, allowing you to earn money from an asset that would otherwise be idle;

4. Asset Creation: By entering into a lease-back agreement, your aircraft now becomes an asset that generates revenue. This can be advantageous as it increases the value and usefulness of your aircraft, making it more attractive for potential buyers in the future;

5. Tax Write-off Opportunities: As your aircraft is now part of a business operation, there are certain tax benefits that you can take advantage of. Many of the general items related to your lease-back arrangement can be written off, reducing your overall tax liability. These write-offs can be particularly helpful considering the high cost of aviation;

Overall, lease-back opportunities provide several positives, including reduced maintenance costs, frequent use of your aircraft, the potential for generating income, creating an asset, and taking advantage of tax write-off opportunities.

The Negatives

While lease-back opportunities for your aircraft offer significant benefits, there are some negatives that you should consider before making a decision.

1. Increased wear and tear on your aircraft: Leasing your aircraft to a flight school or club means that multiple individuals will have control over and be operating your aircraft. This increases the likelihood of the aircraft experiencing more wear and tear over time, potentially leading to damage and misuse.

2. Reduced time with your aircraft: When you enter into a lease-back arrangement, you will have to share your aircraft with others, which means you will have less time to personally enjoy flying it. You may have to allocate specific blocks of time or hours for the lessee to use your aircraft, which can coincide with the time you had reserved for yourself. Losing the full access and freedom to fly your aircraft whenever you want, similar to renting, should be considered when evaluating lease-back arrangements.

3. Potential maintenance costs falling on you: While some lease-back agreements may include maintenance costs, it is important to carefully assess the terms of the agreement. In certain cases, you may still be responsible for additional maintenance expenses. It is essential to understand the details of the maintenance arrangement in order to avoid any unexpected costs.

4. Increased insurance requirements: Leasing your aircraft to multiple individuals introduces higher liability risks. As a result, you may need to obtain additional insurance policies to be eligible for a lease-back arrangement. This includes passenger and public liability insurance, depending on the ownership status of your aircraft. These additional policies can result in increased insurance costs, which may be an out-of-pocket expense for you.

Before deciding if a lease-back arrangement is right for you, it is crucial to weigh the positives and negatives mentioned above. Consider if you are comfortable with the potential for increased wear and tear, reduced time with your aircraft, the possibility of maintenance costs falling on you, and the need for additional insurance coverage. Only by conducting thorough research and due diligence can you determine if a lease-back arrangement with a flight club or school is the perfect avenue for you.

Unlocking Profit Potential: Embracing Freelance Flight Instruction

Becoming a freelance flight instructor is an excellent avenue to generate income with your aircraft. This option requires you to have a Certified Flight Instructor (CFI) license and a commercial license, allowing you to operate as a private Fixed-Base Operator (FBO) and secure your clientele.

Freelance flight instruction offers several advantages that make it a lucrative endeavor:

• Targeting High-Quality Clients: As a freelance CFI, you have the freedom to choose your own clientele. This allows you to target high-quality clients who are willing to pay a premium for personalized and flexible instruction. By having control over your customer base, you can set your own prices and potentially earn a higher return on your services;

• Retaining Profits: Unlike working with flight schools, where a portion of the instructor costs is typically shared, being a freelance CFI enables you to keep the entire profit for yourself. By operating as your own business entity, you can maximize your earnings and subsidize the costs associated with aircraft ownership;

• Flexible Schedule and Autonomy: Being a freelance flight instructor gives you the freedom to create your schedule and choose when and where you want to provide instruction. This autonomy allows you to balance your flight instruction with other commitments and pursuits, ensuring greater flexibility and work-life balance;

• Building a Professional Network: As you continue to expand your freelance flight instruction business, you will have the opportunity to connect with aviation professionals and enthusiasts. Building a robust professional network can lead to further business opportunities, collaborations, and referrals, ultimately enhancing your earning potential.

Key advantages of freelance CFI work

• Become your own business: Operating as a freelance CFI gives you the opportunity to establish your own business. You can create your own brand, set your own policies, and have full control over your operations;

• Bypass the FBO cuts: By eliminating the middleman, such as flight schools or FBOs, you can avoid giving a cut of your earnings to another entity. This allows you to retain the full amount you charge for your services;

• Build your own clientele: As a freelance CFI, you have the freedom to build your own clientele. You can target specific types of clients or focus on niche markets that align with your expertise. Having your own client base gives you the flexibility to tailor your services to their needs;

• Set your own prices: Instead of being bound by the pricing structure of a flight school or FBO, as a freelance CFI, you have the ability to set your own prices. This means that you can determine the value of your services based on factors such as your experience, expertise, and the market demand.

Becoming a freelance flight instructor can provide you with the opportunity to create your own business, retain all of your earnings, build a loyal clientele, and have control over your pricing. Consider this option if you’re willing to take on the responsibilities of managing your own operation and enjoy the benefits of being your own boss.

Opportunity of being a Tourism/Sightseeing Pilot

In the midst of the burgeoning tourism industry, becoming a sightseeing/tourism pilot can open doors to a highly lucrative career, especially if you reside in a coveted tourist destination. By offering short 15-30 minute flights around hotspot areas, you can earn a substantial income, with the actual amount dependent on your location. Popular tourist destinations such as California, New York, Arizona, Florida, and other areas boasting breathtaking views tend to thrive in this aviation niche.

The demand for sightseeing flights allows pilots to generate earnings upwards of $150 for a brief excursion around a densely populated area. However, it is crucial to acknowledge that there are some limitations to this option. Engaging in repetitive flights over the same area may lead to a lack of excitement from pilots, potentially resulting in complacency which poses inherent risks in the aviation field. Yet, the sheer delight visible on the faces of your passengers is an incomparable reward that never loses its charm, making it an aspect worth considering in the long run.

This career path presents a relatively straightforward implementation process – all you need to do is effectively market your business. Utilize social media platforms, websites, and other advertising avenues to create awareness and attract potential customers. As your business flourishes, you gain the liberty to set your own prices and continue offering awe-inspiring sights to tourists within your local area.

Key Points of Becoming a Tourism / Sightseeing Pilot

• Location is key: You should aim to provide flights in a popular tourist area with breathtaking views;

• Potential to earn high income: You can make money by providing short flights that are in high demand and charging accordingly;

• Lack of experience gained from long cross-country planning: While exciting, flying short flights over the same area may become repetitive. It is important to remain focused on the basics of aviation and continually improve your skills;

• The joy of seeing your passengers enjoy their experience: The satisfaction of providing joy to passengers can be fulfilling and a selling point for your business.

Becoming a sightseeing/tourism pilot can provide an easy way to earn money by showing off beautiful sights to visitors. While repetitive, this option can still provide a fulfilling experience for both pilot and passengers alike.

Aerial Photography

If you’re looking for ways to make money with your aircraft, aerial photography is a great option. However, keep in mind that you will need a commercial license as you will be using your flying abilities to generate income. Here are some points to consider:

Wide Range of Customers: There is a high demand for aerial photography, from real estate agents to pipeline operators. People appreciate the unique perspective that aerial shots provide. Although drones have made this field less profitable, there are still opportunities available based on your location.

Unique Perspectives: A powered aircraft can access locations that a drone cannot reach, offering a different view and perspective. This exclusivity can make your aerial photography services valuable.

Additional Resources: Take a look at our article on “12 low Time Pilot Jobs.” Many of these job options intersect with the idea of making money with your aircraft, providing you with more opportunities to pursue.

Conclusion

In conclusion, most of the options mentioned in the list require a commercial license. It’s important to keep this in mind when considering ways to earn extra income with your aircraft. Additionally, remember that even YouTubers, social media influencers, and tiktokers generate income using their aircraft. By thinking of your aircraft as an asset, you can create more opportunities and ensure a significant return on your investment.