Buying with Tango Alpha
What a flight-school leaseback really earns
A leaseback can pay some of an airplane's costs. It rarely pays for the airplane. Here are the numbers, line by line, before you buy a trainer to put on a school's line.
The short version
- The school pays you for each hour it flies. You still own the costs.
- The hours decide everything. At 200 hours a year, most of the income is gone.
- Training hours lower the airplane's value. A 172 past 10,000 hours asks about $28,000 less.
- Student flying brings hard landings, worn interiors and time down for repairs.
- Read the contract for who pays what, and for what happens if the school closes.
How a leaseback works
You buy the airplane. The school puts it on its line and rents it to students and renters. It pays you an agreed rate for each hour on the meter.
Contracts differ on who pays for maintenance, insurance, fuel and the 100-hour inspections that training airplanes need. That split decides whether the airplane makes money.
One year, worked through
An example: a 1970s Cessna 172 bought for $138,000. The school pays the owner $85 per hour. The owner pays insurance, maintenance, the engine reserve and the tie-down. These are example figures. Put in the school's real rate and your real quotes.
| 200 hours | 400 hours | |
|---|---|---|
| Paid by the school, $85 per hour | $17,000 | $34,000 |
| Insurance for rental and training use | −$5,000 | −$5,000 |
| Inspections and repairs, $25 per hour | −$5,000 | −$10,000 |
| Engine reserve, $35,000 overhaul over 2,000 hours | −$3,500 | −$7,000 |
| Tie-down, $150 a month | −$1,800 | −$1,800 |
| Left for the owner | $1,700 | $10,200 |
That is before any loan payment, before downtime, and before what the hours do to the airplane's value.
A leaseback is often sold on depreciation. Whether you can use it depends on your own taxes. Ask your CPA before you count it.
What the hours do to the airplane
Asking prices for 150 U.S.-registered Cessna 172s built 1968 to 1986, listed for sale April to October 2026:
| Total time | Listed | Median asking price |
|---|---|---|
| Under 7,000 hours | 86 | $138,250 |
| 7,000 to 10,000 hours | 29 | $129,000 |
| Over 10,000 hours | 35 | $110,000 |
Five years at 400 hours a year adds 2,000 hours. Paint, interior and avionics wear with them. A hard landing that needs a repair stays in the airplane's damage history for good.
Ask the school before you sign
- How many hours did a comparable airplane fly last year? Is there a minimum?
- Is the rate per hour on the Hobbs meter or the tach?
- Who pays for the 100-hour inspections, repairs and parts?
- Whose insurance covers the airplane, for what hull value, and who pays the deductible?
- Who keeps the logbooks, and can you see them at any time?
- How much notice ends the contract, and who brings the airplane back?
- What happens to your airplane if the school closes?
Where we fit
We sell trainers. If you are buying one for a school's line, we will price it from real listings and FAA sales, and tell you what it is likely to bring after a few years of training.
Looking for a trainer?
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