Fixed Costs

Category: aviation

Operating costs that don’t change based on usage, such as hangar fees, insurance, and pilot salaries.

Fixed costs are the "standing bills." Whether you fly 0 hours or 500 hours, you have to pay the insurance and the hangar storage. Managing these is the biggest hurdle for new jet owners, leading many to hire a management company.

Common Examples

• The analysis showed that our fixed costs for the year were significant, even though the aircraft sat idle for three months.
• Moving from private ownership to a jet card program effectively converts fixed costs into simple variable costs based on your usage.