When does Co-Ownership make sense?
For anyone considering private air travel, the question of whether to charter, co-own, or fully own an aircraft like the PC-12 demands a significant financial and operational decision. Understanding the cost-benefit threshold for each option is essential for making the right choice.
The Pilatus PC-12 is known for its versatility and efficiency, making it a popular choice for both regional and international travel. However, determining whether to charter, co-own, or fully own a PC-12 depends on your usage patterns. Below, we break down the operating costs and utilization thresholds to help you assess which option makes the most sense for your needs.
Comparing Costs: Charter, Co-Ownership, and Full Ownership
In the following graph we’ve analyzed the costs involved with each option, considering essential expenses like hangar, insurance, maintenance, crew, management, reserves, and jet fuel. For charter services, we've based the comparison on multiple PC-12 charter quotations from Canadian charter operators in the Northwest Pacific region.
The graph for the co-ownership is a simplified model as we assume that users of this model will maximize their utilization within each share they own. This approach does not account for incremental increases with each additional 1/16th share or 50 hours of utilization. Therefore, the model is a more concise representation rather than reflecting the precise steps for each additional share.
Annual Private Air Travel Budget | This chart compares the yearly costs (in CAD) of three private air travel options—Charter, Co-Ownership, and Full Ownership—based on hours used each year.
Thresholds:
1. Charter vs Co-Ownership
Annual Utilization: 30 hours per year or approximately 15,000 km annually
Annual Private Air Travel Budget: $150,000.00 CAD
At this level of usage, chartering a PC-12 is the more economical choice. If your annual flying needs fall below 30 hours, charter services will be more cost-effective.
Co-ownership starts to make more sense financially when your annual usage exceeds 30 hours. At this threshold, the cost of chartering begins to outweigh the benefits, making co-ownership a more viable solution.
2. Full Ownership vs Charter
Annual Utilization: 250 hours per year or approximately 100,000 km annually
Annual Private Air Travel Budget: $1,250,000.00 CAD
If you’re flying over 250 hours per year, full ownership becomes more viable. At this point, the cost of chartering rises substantially, and full ownership offers greater control over scheduling and costs. However, full ownership comes with additional responsibilities. The aircraft is available to you—if it's not down for maintenance. Also, you are fully responsible for ensuring compliance with all aviation regulations, from airworthiness to crew certification, and for handling unplanned repairs, weather-related issues, and logistical challenges.
3. Full Ownership vs Co-Ownership
Annual Utilization: 350 hours per year or approximately 150,000 km annually
Annual Private Air Travel Budget: $1,400,000 CAD
For those flying 350+ hours per year, transitioning from co-ownership to full ownership becomes the most economical and operationally efficient option. With this amount of annual flight time, having complete control over your aircraft is often preferable. But, as mentioned, full ownership means managing everything, including maintenance and regulatory compliance.
Conclusion: Weighing the options
Charter: If you fly less than 30 hours per year (or 15,000 km annually), chartering remains the most cost-effective option.
Co-Ownership: For those planning to fly privately between 30 and 350 hours annually, co-ownership offers significant cost savings and access flexibility over chartering. It provides the ideal balance for frequent travelers who don’t want the full financial or operational burden of full ownership.
Full Ownership: When flying more than 350 hours annually, full ownership offers better control over your flight schedules and long-term cost savings, but you will take on full responsibility for the aircraft's upkeep, maintenance, and regulatory compliance.
Help with your choice
If you're ready to explore co-ownership of a Pilatus PC-12 or if you're looking for more personalized guidance on whether chartering, co-ownership, or full ownership is the right fit for you, contact us at AeroShares. Our team is here to guide you through the entire process and help you make the most financially sound decision based on your needs. Schedule a consultation today to learn more about how we can help you take control of your private air travel.