Aircraft Cost Analysis Excel Model

Frequently Asked Questions

Will this model produce cash flows and reports for any type aircraft?
YES. It works for any type aircraft: two seat trainer, Boeing 747, Ag aircraft, personal and business aircraft, charter and rental aircraft, as well as helicopters.

How is ownership cost shown?
There are several reports produced: fixed annual costs, hourly operation cost, and detailed before and after tax cash flow for each year up to five years. The model sells the aircraft beginning at the year you select and at the resale value you input, then calculates the cash impact to the owner. Almost every item that can impact cost is an input so the flexibility of the model is outstanding.

Does the model have aircraft costs stored for all the different aircraft types?
NO. However, the model does contain an aircraft database that includes many current production aircraft numbers that are difficult to obtain. You must input the aircraft cost information that is custom to you. Several inputs required to use this model are usually custom inputs and obtained from your sources. After you complete your input for each cost analysis, you can save that input so that it can be easily recalled later. You can save up to 65,535 individual analyses. This feature allows instant recall on any previous analysis that you have saved.

How do you recall previous analysis?
Each analysis has a unique Case ID. The Case ID is always printed on the customer report, so you will know the exact analysis that the customer has been given. This model is designed so that each salesperson would have their own model with their presentations stored for easy recall. See cover sheet question for additional features.

What type depreciation is used in this model?
 • Automatic Depreciation Selections: You may select the 5-year or 7-year MACRS suggested by the IRS. The straight-line method may be used by providing the number of years and salvage value. In addition, the 150% declining balance method for 6 years may be used for those desiring to avoid the alternative minimum tax (ALT). In some situations, where the aircraft cannot be depreciated, you can select no depreciation. The bonus depreciation methods are also included.
 • Manual Depreciation Entry: You may enter depreciation manually to produce precise budgets or to use other depreciation methods that are different from those included in the program. This provides the user with total flexibility.

Will the model accept a depreciation tax basis from the customer because of a trade?
YES. You may input the tax basis of the aircraft being used in the analysis. This allows the customer’s accountant to provide you with an exact tax basis in the aircraft being purchased.

How are joint ownership costs calculated for different owners?
The annual fixed cost are allocated to the owners by their percentage of ownership. The owner using the aircraft pays the hourly operating costs.

Will the model calculate financing?
YES.

How does the model handle overhaul expense reserves?
You are provided several choices on inputting overhaul expense reserves. You may expense the reserves on an hourly basis or in the year the expense occurs. If you treat the overhaul expenses as a capital expenditure, then you may enter the capital expenditure in the year the expenditure occurs and also enter the depreciation schedule for the capital expenditure by selecting the manual depreciation entry.

Does the model show leasebacks on charter and rental aircraft?
YES. You are provided several choices on how the income is divided and what fees are charged.

Will the model calculate the utilization required for breakeven on a charter, rental, and agricultural aircraft?
YES. You know your hourly utilization required to breakeven. In addition, the model will calculate the investment return for the cash flow created by the aircraft for 900 combinations of hourly rates and annual hourly utilizations. This pricing table will help you price your charter, rental, and agricultural aircraft.

Can calculation formulas be changed?
NO. This model is designed for ease of use and the error free production of its reports. All values (other than input items) are protected for your convenience. You CANNOT change any values other than input items. The exception is the Cover Sheet, see below.

Can I design my own “Cover Sheet”?
YES. The program comes with an SLM logo on the cover sheet. You may completely change the design of the cover sheet to whatever pleases you. You simply delete the SLM logo, then paste and resize your logo on the cover sheet. In addition, you enter your company information and salesperson information on the cover sheet when you first receive the model. You only do this one time. The design idea behind this model is that each salesperson will have their own model with a cover sheet that pleases them. Your customized information is saved with the model. The model then produces a professional cover sheet for each analysis that you perform.

How many inputs are required to perform a cost analysis?
Each type analysis requires different inputs. There are 139 possible inputs. All inputs are color-coded. The inputs that are used for the type analysis that you have selected are shaded light green. Many of these inputs may contain zero values because that is your desire. The inputs that are NOT used for the type analysis that you have selected are either shaded light pink or hidden from view (a program choice). The color-coded input lets you easily determine the required input for each type analysis. This is a real time saving option for the user.