1. Aircraft Acquisition Cost Flight Training Cost Jannie Loutzis Loutzavia Flight Centre

2. What does it take to keep an aircraft in the air? 2

3. MONEY 3

4. Aircraft Acquisition Costs 1)The Type of Aircraft; 2)How much money can we invest; 4

5. Type of Aircraft 1)How often will I fly? 2)Four or Six Seats? 3)Multi or Single Engine? 5

6. How much will it cost? Financing becoming more difficult; 10 – 15% deposits increased to 25 -50% deposits in one or two years; Evolved into a lengthy process; 6

7. How much will it cost? New C172 $ 3 00 000 R 2 300 000 New Baron 58 $ 1 100 000 R 8 500 000 How can costs be reduced? 7

8. How to reduce cost: Fractional Ownership/Partnerships Aircraft availability – who flies when? Disagreements on Maintenance Costs; Complexities in Selling or Upgrading the aircraft; Finances and management much more complex; 8

9. How to reduce cost: Rent Aircraft to Schools or Clubs Cannot control who flies the aircraft and where it flies too; May require more maintenance due to Training exercises; Insurances cost more due to higher accident risk; Aircraft not readily available when owner wants to fly; 9

10. How to reduce cost: Non Type Certified Aircraft C182 $ 400 000 Ravin 500 $ 200 000 Night and IF Certification; Commercial Operation Certification; Finance approval and Resale Value; Safety and Reliability 10

11. How to reduce cost: Buy a used Aircraft 2012 C182$ 400 000 1999 C182 $ 200 000 1979 C182$ 100 000 Are used aircraft safe? Year Model/Total Time/Condition; Previous Accidents or Incidents; Storage History; Overhaul History; Previous Owners and Utilization; Availability and Cost of Spare Parts; Pre Purchase Inspection CRUCIAL!! Test Flight CRUCIAL!! 11

12. How to reduce cost: Summary Fractional Ownership; Renting to Schools, Clubs or Charter Companies; Non Type Certified Aircraft; Used Aircraft; The choices you make will affect operating costs like insurance, hangarage and routine maintenance costs in future! 12

13. Flight Training Costs South Africa PPL R 75 000 ($ 9 800) CPL R 280 000 ($ 36 000) Single Engine CPL R 320 000 ($ 41 000) Multi Engine PPL CPL USA$ 8500$ 50 000 UK$ 10 000$ 75 000 Aus$ 13 000$ 60 000 13

14. Flight Training Costs South Africa 5 Years Ago PPL R 45 000 ($ 5 800) CPL R 180 000 ($ 23 000) Single Engine CPL R 200 000 ($ 26 000) Multi Engine Increase of 33% 14

15. Flight Training Costs Factors affecting costs of Aircraft: Fuel Price –Increase for R 7.00 to R13.00 p liter; Landing Fees and Airport Taxes –FAWB 100% increase since 2007; Maintenance Costs; Exchange Rates; Owning or Renting an Aircraft; 15

16. Flight Training Costs Other Factors Affecting Training Cost Accommodation; Student Ability; Full Time vs Part Time; Financing Cost; Flight Training Costs vs University Education 16

17. Flight Training Costs How to reduce costs: Incorporating Simulators; Cessna 162 Skycatcher; Computer based education; Human Resources; NB!! Cost cutting may never reduce standards! Flying is a Privilege; Training cost can never be compared to the cost of a human life! 17