Reserve cost per hour 172

[geneticistx]

Hi,
I was having a discussion today with a friend and we were debating what they ask each fractional owner to pay per hour toward an annual and toward the Overhaul at 2200 on a 172. I've seen numbers between $40-$80 per hour for a 172 (E2D). There are things that have to get done at an annua, regardless of hours flown.

Any insight?

MK

[Big Pistons Forever]

Overhaul = about $ 30,000 all in (engine,shipping, labour and parts for the Re and Re) so 15 $/hr should cover overhaul reserve. If you are starting with a part time engine then you will need more to get enough money to cover the bill. Your hourly rate should also cover oil and oil changes.

For the average private group the annual inspection costs are essentially independent of the hours flown. If you fly 50,100 or 200 hrs the annual is probably going to cost the same so my personal belief is like tie down/hangar and insurance, maintenance should be split equally between all members

I highly recommend you rent a hangar. Keeping the airplane out of the elements greatly reduces the airframe, engine, and paint degradation

[PilotDAR]

To add to Big Pistons thoughts, also consider that mag overhauls are probably needed every 500 hours, the engine will probably consume a vacuum pump during that time, a cylinder or two could need work, and you could need a set of spark plugs along the way. So add an extra allowance for those.

[JasonE]

Also add a bit for prop overhaul, and incidentals. 5 year inspection requirement on fixed pitch. Much easier to have money in the bank than pay out of pocket,

[Big Pistons Forever]

The choice is basically do you use the hourly rate to subsidize maintenance or do you simply divide all maintenance costs between the partners as they occur. I prefer the latter because it keeps the hourly rate lower which encourages use.

Some groups set a middle ground. The hourly rate is set high enough to generate a fund to cover running repairs but major repairs over a set dollar limit and annual inspections are split equally among the partners.

I am in a 2 person partnership and we have no hourly cost at all. The deal is you leave the plane full of fuel after every flight. We alternate buying cases of oil and all repairs and other maintenance is split equally. 12 years in and no issues