Welcome to Fly Corona!

Aircraft Investment/Leaseback Arrangements at Fly Corona!

Pilots!

Do you own an aircraft which is not getting enough use?

Are you considering owning an aircraft for the tax advantages, but are worried about the fixed costs?

Do you see how busy our own aircraft are, and want to invest in a flying rental property?

Consider, then, the FBO Leaseback -- Fly Corona style..

As you may or may not know, Aircraft Leasebacks have traditionally been a pure gamble for an aircraft owner. The FBO operates the aircraft in the rigorous training environment, calls all of the shots, and maybe if the owner is lucky, he breaks even at the end of the month. There are a lot of horror stories and unscrupulous FBOs out there. As you already know, we're a little different.

While we definitely operate a rigorous training environment, Fly Corona leasebacks have never taken financial control away from the owner. We can make excellent decisions on your behalf, but we never mandate any particular service, shop, or provider -- only that the aircraft is maintained to the highest standards.

Fly Corona will operate the aircraft on your behalf. You set the parameters, and we obey. When the right mix is found, we have a mutually beneficial arrangement.

While Standard Leasebacks work great, some aircraft have been a gamble -- so we've devised a new option for owners who want to "get their feet wet" without the downside risk. The Guaranteed Performance Leaseback. Check it out:

How a Standard Leaseback works

A Leaseback is basically a sublease to Fly Corona of an aircraft that you own. You supply us an aircraft, pay the insurance, and pay the maintenance -- we supply students, fuel, and a large slice of the operational revenue. When things work, they work great, usually netting the owner upwards of $5,000 per month for an active plane. The owner is expected to set aside some of these funds to cover maintenance "surprises" which may amount to numerous thousands, or the eventual engine overhaul, which can be as much as $15,000. Managed well (and we're good at it), it is a win-win for everybody.

The Pros:

Your fixed costs (tiedown, insurance, payment) are typically paid for.

You may use the aircraft for the cost of fuel alone (typically appx $24-32/hr).

You will gain equity in an aircraft as it works, often paying for an aircraft completely in 4-5 years of service.

For good and new airframes, excellent positive cash flow.

Significant Accelerated Tax Credits. (up to $250,000 in the first year, exceeding your actual outlay by a factor of 10)

The Cons:

Poor airframes may generate maintenance "surprises" to the tune of many thousands of dollars to repair.

Flight Training service is rigorous and will accelerate wear on the aircraft. Most of our planes fly over 1,000 hours per year! The fleet average is appx 60-100 hours per year.

We ask you to schedule your flights in the aircraft so as not to inconvenience our customers.

...if you have experience with real estate rental properties, the concept is similar, but the volumes are much higher, and we inspect the aircraft, on average, every 3 weeks.

Here are the 2010-2011 Leaseback rates for the Standard Leaseback at Fly Corona:

C-150 class early C-172 class midrange C-172 class new C-172 class

Cessna 152 / Beech 76 / Piper PA-38
First 50 hours per month	$25.00 per hour
Hours 51 - 75	$23.00 per hour
Hours 76 - 100	$21.00 per hour
Hours 101+	$19.00 per hour

Cash to owner:
Average usage 25 hours/mo	$625 per month / $7,500 per year
Average usage 50 hours/mo	$1,250 per month / $15,000 per year
Average usage 75 hours/mo	$1,825 per month / $21,900 per year
Average usage 100 hours/mo	$2,350 per month / $28,200 per year
Average usage 125 hours/mo	$2,825 per month / $33,900 per year
Fly Corona C-150s average appx 60 - 70 hours per month.

Cessna 172 K-P / PA28 Cherokee or Warrior
First 50 hours per month	$30.00 per hour
Hours 51 - 75	$28.00 per hour
Hours 76 - 100	$26.00 per hour
Hours 101+	$24.00 per hour

Cash to owner:
Average usage 25 hours/mo	$750 per month / $9,000 per year
Average usage 50 hours/mo	$1,500 per month / $18,000 per year
Average usage 75 hours/mo	$2,200 per month / $26,400 per year
Average usage 100 hours/mo	$2,850 per month / $34,200 per year
Average usage 125 hours/mo	$3,450 per month / $41,400 per year
Fly Corona C-172s average appx 80 - 100 hours per month.

Cessna 172 R/S non-steam / PA28 Archer
First 50 hours per month	$36.00 per hour
Hours 51 - 75	$33.00 per hour
Hours 76 - 100	$30.00 per hour
Hours 101+	$25.00 per hour

Cash to owner:
Average usage 25 hours/mo	$900 per month / $10,800 per year
Average usage 50 hours/mo	$1,800 per month / $21,600 per year
Average usage 75 hours/mo	$2,625 per month / $31,500 per year
Average usage 100 hours/mo	$3,375 per month / $40,500 per year
Average usage 125 hours/mo	$4,000 per month / $48,000 per year
Fly Corona C-172s average appx 80 - 100 hours per month.

Cessna 172 S / G-1000
First 50 hours per month	$50.00 per hour
Hours 51 - 75	$40.00 per hour
Hours 76 - 100	$30.00 per hour
Hours 101+	$25.00 per hour

Cash to owner:
Average usage 25 hours/mo	$1,250 per month / $15,000 per year
Average usage 50 hours/mo	$2,500 per month / $30,000 per year
Average usage 75 hours/mo	$3,500 per month / $42,000 per year
Average usage 100 hours/mo	$4,250 per month / $51,000 per year
Average usage 125 hours/mo	$4,875 per month / $58,500 per year
Fly Corona C-172s average appx 80 - 100 hours per month.

Guaranteed Performance Leasebacks.

Something new we are trying out this year is the Guaranteed Performance leaseback. Here's how it works:

Rather than burden the owner with the ups and downs of aviation, unexpected maintenance costs, and the high insurance cost -- we are willing to share the risk and rewards with you.

For any aircraft you wish to share with us, you perform the initial annual inspection and squawks (at your expense). Commit to a year of leaseback service, and we will pay your insurance, ALL non engine overhaul maintenance, and send you a guaranteed positive amount every month.

C-150 class early C-172 class midrange C-172 class new C-172 class

Cessna 152 / Beech 76 / Piper PA-38
First 50 hours per month	$8.00 per hour
Hours 51 - 75	$7.00 per hour
Hours 76 - 100	$6.00 per hour
Hours 101+	$5.00 per hour

Cash to owner:
Average usage 25 hours/mo	$200 per month / $2,400 per year
Average usage 50 hours/mo	$400 per month / $4,800 per year
Average usage 75 hours/mo	$575 per month / $6,900 per year
Average usage 100 hours/mo	$725 per month / $8,700 per year
Average usage 125 hours/mo	$850 per month / $10,200 per year
Fly Corona C-150s average appx 60 - 70 hours per month.

Cessna 172 K-P / PA28 Cherokee or Warrior
First 50 hours per month	$10.00 per hour
Hours 51 - 75	$9.00 per hour
Hours 76 - 100	$8.00 per hour
Hours 101+	$7.00 per hour

Cash to owner:
Average usage 25 hours/mo	$250 per month / $3,000 per year
Average usage 50 hours/mo	$500 per month / $6,000 per year
Average usage 75 hours/mo	$725 per month / $8,700 per year
Average usage 100 hours/mo	$925 per month / $11,100 per year
Average usage 125 hours/mo	$1,100 per month / $13,200 per year
Fly Corona C-172s average appx 80 - 100 hours per month.

Cessna 172 R/S non-steam / PA28 Archer
First 50 hours per month	$14.00 per hour
Hours 51 - 75	$12.00 per hour
Hours 76 - 100	$10.00 per hour
Hours 101+	$8.00 per hour

Cash to owner:
Average usage 25 hours/mo	$350 per month / $4,200 per year
Average usage 50 hours/mo	$700 per month / $8,400 per year
Average usage 75 hours/mo	$1,000 per month / $12,000 per year
Average usage 100 hours/mo	$1,250 per month / $15,000 per year
Average usage 125 hours/mo	$1,450 per month / $17,400 per year
Fly Corona C-172s average appx 80 - 100 hours per month.

Cessna 172 S / G-1000
First 50 hours per month	$20.00 per hour
Hours 51 - 75	$15.00 per hour
Hours 76 - 100	$12.50 per hour
Hours 101+	$10.00 per hour

Cash to owner:
Average usage 25 hours/mo	$500 per month / $6,000 per year
Average usage 50 hours/mo	$1,000 per month / $12,000 per year
Average usage 75 hours/mo	$1,375 per month / $16,500 per year
Average usage 100 hours/mo	$1,688 per month / $20,250 per year
Average usage 125 hours/mo	$1,938 per month / $23,250 per year
Fly Corona C-172s average appx 80 - 100 hours per month.

Leasebacks are a highly variable investment and not for everyone. We track all of our aircraft as if they were leased back, and have detailed historical data to provide you.

For more information (and we have a lot of it!), please contact the office for more details.

Additionally, you may contact Mike for his investment spreadsheets, insurance cost calculators, "things to look for" in a leaseback investment aircraft, and some other details.

For unusual and non-training-class Aircraft, a position in our Flying Club may make more sense. Much less rigorous demands on the aircraft, limited or no training activity, fewer pilots, and no pressure to make hours.

Wingfleet Flying Club is currently pursuing a Baron-class AMEL Aircraft, a Citabria/Decathalon or similar, and an LSA. Additionally, we are searching for a six-place aircraft such as a PA32, A36, or C210. You may email Mike for more details.