The T&G Leaseback Program
Want more than just the depreciation on your aircraft? Get it in the air more often and dramatically boost your cash flow.
What is an Aircraft Leaseback?
A "leaseback" is a management agreement whereby T&G Flying Club makes your aircraft available to the rental market. T&G provides a turnkey operation and is responsible for:
- Introducing qualified pilots to rent your aircraft
- Paying all expenses associated with your aircraft (maintenance, fuel, insurance, hangar) - T&G gets lower fleet rates on maintenance, fuel, and insurance than an individual can obtain
- Collecting all revenue generated
- Coordinating maintenance and ensuring the aircraft meets all regulatory requirements
- Coordinating all scheduling of the aircraft
- Providing another aircraft if yours is booked or a different aircraft fits your mission better
- Accounting for all flight time, rental income, and expenses - and pay you any profit generated
Why Leaseback My Aircraft?
A leaseback isn't for everyone. Here are some of the reasons to consider a leaseback:
- You want to own an airplane, but can’t afford to own it outright.
- You are in a position to take advantage of the tax benefits of owning an airplane.
- You already own an airplane, but are not flying enough. Airplanes should be flown regularly to keep them healthy.
- You want to turn your aircraft into an asset instead of a liability.
- You would like to reduce your flying costs.
- You and/or friends are going to be doing a lot of flying, and would rather pay yourself for flying, rather than someone else.
Why Leaseback with T&G?
Ok, so you've read the above and are still thinking a leaseback could suit your needs. Why T&G?
T&G Flying Club has over 40 years of experience working with leasebacks and large aircraft fleets. Get the benefit of:
T&G Flying Club has over 40 years of experience working with leasebacks and large aircraft fleets. Get the benefit of:
- Veteran aircraft management - well versed with the applicable regulatory requirements
- Major discounts on your aircraft's largest expenses - fuel, maintenance, and insurance discounts associated with our large fleet
- A large and established customer base of skilled pilots to fly your aircraft
- Infrastructure designed to make leasebacks a simple process
- Abundant replacement aircraft in the club if yours is down for maintenance or already booked by another pilot
How The Leaseback Will Work
The leaseback is basically a management agreement involving an aircraft you own. You provide us with your airplane. We collect all the revenue. We pay all the expenses. At the end of each month we write you a check if revenue exceeds expenses. If expenses exceed revenue, we send you a bill. We take care of everything for you so you don’t have to worry about all the tedious details of aircraft ownership.
Pros and Cons of Aircraft Leasebacks
The Pros:
The Cons:
Leasebacks are highly variable investments and are not for everyone. The decision to put an aircraft into a leaseback should be considered carefully. We track the financial performance of all our aircraft, and have detailed historical data to help make informed decisions. If you think a leaseback is something you might consider, please contact us for more details. We’ll be happy to work with you to predict the revenue, expense, and overall performance of your aircraft in our fleet. We can also help you purchase the right aircraft and to set your aircraft’s rental rate to maximize your profits. After all… we cannot be successful as a flying club unless our aircraft owners are successful.
- Dramatically reduced cost of ownership of your aircraft.
- You may use the aircraft for the cost of fuel alone (typically around $50-75/hr).
- You will gain equity in an aircraft as it works, often paying for an aircraft completely in 4-5 years of service.
- Potential for excellent positive cash flow.
- Significant accelerated depreciation tax credits. (up to $500,000 in the first year, exceeding your actual outlay by a factor of 10)
The Cons:
- Flight training service is rigorous and will accelerate wear on the aircraft. Some of our planes fly hundreds of hours per year or more.
- You’ll have to schedule your flights in the aircraft just like any other renter. You’ll lose the flexibility of flying your particular airplane whenever you want (though you will have many others to choose from in replacement)
Leasebacks are highly variable investments and are not for everyone. The decision to put an aircraft into a leaseback should be considered carefully. We track the financial performance of all our aircraft, and have detailed historical data to help make informed decisions. If you think a leaseback is something you might consider, please contact us for more details. We’ll be happy to work with you to predict the revenue, expense, and overall performance of your aircraft in our fleet. We can also help you purchase the right aircraft and to set your aircraft’s rental rate to maximize your profits. After all… we cannot be successful as a flying club unless our aircraft owners are successful.