Is leasing your aircraft back to an FBO actually worth it? Model your specific deal and see the real numbers — before you sign anything.
How leaseback works: You buy an aircraft and lease it to an FBO or flight school. They rent it to students and renters, pay you a revenue share per hour, and cover some operating costs. In exchange, your aircraft accumulates hours and wear — which must be weighed against the income and reduced carrying costs.
Set to $0 if paid cash. Typical 15yr loan ~$650–800/mo at $85k
Insurance (annual)$2,200/yr
Leaseback insurance is higher — expect $1.8–4k for C172
Hangar / storage$0/mo
Often $0 — FBO provides hangar as part of leaseback deal
Annual inspection$2,400/yr
Hours YOU want to fly/year80hrs
Your personal flight time (not leaseback hours)
Your hourly variable cost$55/hr
Fuel + oil for your personal flights
FBO deal terms
Leaseback income
FBO rental rate (wet)$165/hr
What the FBO charges renters per Hobbs hour
Your revenue split70%
Typical range: 60–80% to owner · 20–40% to FBO
Projected leaseback hours/year300hrs
Active flight school C172: 300–600 hrs/yr is typical
FBO covers fuel cost?100%
Most deals: FBO pays all fuel for leaseback flights
FBO covers maintenance?50%
Variable — some cover all mx, others cover none
Engine/prop reserve (per hr)$18/hr
Lycoming O-360 TBO: ~$15–22/hr reserve is typical
Avg mx cost per leaseback hr$12/hr
Unscheduled mx: $8–20/hr for high-use training aircraft
Analysis results
Gross leaseback income
$34,650
300 hrs × $165 × 70%
Net leaseback income
$26,010
income after reserves & mx
Net annual carry cost
-$8,850
net income (aircraft pays you!)
Effective $/hr you fly
Free+
your personal hours only
✓
Leaseback saves you $26,010/yr vs solo ownership
At 300 leaseback hrs/yr your effective cost to fly drops to $-111/hr — significantly below the $215/hr cost without leaseback. The aircraft is actually generating net income.
Annual P&L — with vs without leaseback
Item
Without leaseback
With leaseback
Difference
Loan payments
-$8,160
-$8,160
—
Insurance
-$2,200
-$2,200
—
Hangar / storage
$0
$0
—
Annual inspection
-$2,400
-$2,400
—
Your fuel (80 hrs)
-$4,400
-$4,400
—
Engine reserve
-$1,440
-$6,840
-$5,400
Leaseback income
$0
$34,650
+$34,650
LB mx (your share)
$0
-$1,800
-$1,800
TOTAL annual cost
-$17,160
$8,850
+$26,010
5-year cumulative cost — with vs without leaseback
$17,160
-$8,850
Yr 1
$34,320
-$17,700
Yr 2
$51,480
-$26,550
Yr 3
$68,640
-$35,400
Yr 4
$85,800
-$44,250
Yr 5
Key considerations before you sign
Get it in writing: Minimum guaranteed hours, maintenance responsibility split, priority scheduling for your own flights, and termination terms should all be explicit in the leaseback agreement.
Tax angle: Leaseback income may be reportable as business income. Consult a CPA familiar with aviation — depreciation deductions can significantly improve the real math.