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Why Owners Don't Want to Place Their Aircraft on 135 Certificates


Most Aircraft Management are really nothing more than CHarter Operators so they want the Aircraft Owners to believe that by placing their Aircraft on the Managemnt Companies 135 Certificate will not only save the Aircraft Owner money, but will also make the Aircraft Owner money, it does not as a matter of fact it will wind up costing the aircraft owner money in the long run. These companies also want the Aircraft owner to believe that they will incure huge tax savings when in fact it is going to add an additional tax to the aircraft by placing it under a 135 Certificate.

Every aircraft is taxed base on the market value of the aircraft this is done yearly. This tax is reduced by the number of days the aircraft is away from it's home base. Management Companines that also do Charter want the Aircraft Owner to believe that by placing their aircraft on the Management Companies Certificate and allowing the Management Company to Charter the Aircraft out will give them huge tax saving when in fact as of 2007 the FAA has added a 135 tax to aircraft placed on a 135 certificate, this was done to discourage aircraft owners from allowing their aircraft to be placed on a 135 certificate.

Their are a number of ways that an aircraft owner can reduce the cost of owning an aircraft as well as actually us the aircraft to make money that don't require the aircraft being placed on a 135 certificate.

Below is a list of other reasons why aircraft owners do not want to place their aircraft on 135 certificates.

o Placing an aircraft on a 135 charter certificate:
1) Gives control of the aircraft to the certificate holder (something that is not widely known or told to clients).
2) Causes the aircraft to fly more hours thus requiring more maintenance. Thus costing owners more money.
3) Only covers a small part of the fixed operating costs.
4) Aircraft crews require more training thus costing the owners more money for training.
5) Setting up an aircraft costs the owners money. To do usually an additional 10 to 20 thousand dollars up front.
6) Owners don’t make money by chartering their aircraft, and with the new FAA tax placed on 135 aircraft it winds up costing the owner more money.
7) Allowing people who have no stake in the aircraft to use the aircraft, can result in damage to the aircraft, i.e., stains or torn upholstery or carpeting, items being broken on the aircraft thus costing the owners more money for repairs.
8) Places more wear and tear on the aircraft and reduces airframe and engine life.
9) Requires the aircrew to fly under part 135 at all time thus limiting the hours that can be flown in addition to duty time limits.