Turboprops

All You Should Know Before Buying a Turboprop

Turboprops are a great combo of power, fuel economy and affordability. They cost less to buy than jets and more to run. And turboprops can be made bigger and faster than piston aircraft. But a turboprop is a big deal.

This step by step guide will show you how.

What Qualifies As a Turboprop?

Turboprops are jets driven by a gas turbine engine. The turbine spins the propeller which provides the bulk of the thrust that drives the plane forward.

They are bigger and more complex than piston aircraft but smaller and easier than jets.

Turboprop engines consist of multiple stages of turbines and compressors to blow air into the cylinder and get energy from the flaming exhaust gases.

This rotating energy is converted into thrust amazingly well by the propeller. This is why turboprops go more than 300 mph without spending more fuel than a jet moving the same speed.

These planes can carry from 5 to 19 people and are rated to take off at 5,000 to 18,500 pounds. At the bottom, there are the 4-9 passenger Piper Meridian and Daher TBM series, which are quite popular.

The upper spectrum has classic local airliner models such as the ATR 72 and Bombardier Q400.

The Benefits of Turboprop Ownership

So why a turboprop rather than a cheaper piston engine or a bigger jet? Here are some of the biggest benefits of turboprops:

• Velocity - Turboprops fly between 100-150 mph faster than piston planes. You’ll get there twice as fast.
• Mileage - More fuel saves you more miles. There are more than 1,000 miles between fuel refills on the majority of turboprops.
• Ceiling - Turboprops fly at 30,000 feet. And you can fly through the elements and crowded skies.
• Dependability - The turboprops of today are electronically driven and very reliable. They’re engineered to run for thousands of hours between repairs.
• Technology - Turboprops come packed with electronics and facilities. Some have the luxuries such as autopilots, weather monitoring, and cabin pressurization.
• Price - Turboprops consume less fuel, need less maintenance, and hold up much better than jets. The running costs can be half that amount.

There is nothing better when it comes to frequent fliers who have to go a lot of miles in a short amount time than turboprop flights. You get almost the speed and performance of a jet but at about the same cost as a piston plane.

How Much Does a Turboprop Cost?

Turboprop aircraft are big money. But they are so much cheaper than jets.

New turboprops start at about $2 million for a 5-6-seat version, and reach $7 million for airliner-class planes that seat 19+.

1970s/80s old-school King Airs are still selling for under $500,000. Well done late model King Airs and TBMs for $1-3 million.

Remember, the older the aircraft, the more you’ll pay to fly it. Maintenance costs increase with age of engines and systems.

Besides the purchase price, you’ll need to budget for:

• Training - You’ll need to get a turboprop type rating and insurance approval that will run you $10,000-15,000.
• Hangar - Estimate $500-1000+ per month if your insurance says it needs to be kept in an indoor location.
• Repairs - Spend $100-300/flight hour on engine reserves, check flights, basic maintenance and consumables such as brakes.
• Oil - Jet fuel is $4-7 a gallon. Various burn rates, ranging from 35 to 90 gallons per hour.
  Insurance - For a professional crew with a nice $2 million turboprop, you’re looking at $50,000 a year.
• Management - If the plane is a professionally run plane management usually cost $1000-5000 per month.

On the whole, expect to spend $500K-1M per year or more flying your turboprop. Yet the time savings and ease will be more than worth the expense to the busy executive or businessperson.

Choosing the Right Turboprop Model

After you buy a turboprop, it is an exercise in deciding what make and model to purchase:

Function - What will you do with the aircraft? Short hops or long hauls? Dollhouse load or a handful of crew? Small airports or big hubs?

Cost Awareness - In addition to the purchase price, operating expenses are different from model to model. Look up fuel consumption, upkeep and insurance costs.

Performance - Think cruise speed, range, takeoff distance, ceiling, cargo/passenger. -Buy a plane made for your travels.

Technology - Will you go VFR only or fully IFR? Need a high-end autopilot? Be sure to get the avionics you require.

Comfort - Things such as headroom, noise level, bathroom, and pressurization count toward passenger comfort. And passengers happy are happy journeys!

Safety - Read about the plane’s track record and history of accidents. Seek a safety culture at the manufacturer.

Service - Be sure to check the parts and service for the make and model at the airports you’ll frequent.

Price - Examine aircraft resale prices in the past. Good supported models with a good track record have their price.

So the right turboprop is just a matter of choosing the one that’s going to work best for you and your wallet in the long term.

Popular and Capable Turboprop Models

The turboprop market is populated by just a handful of tried-and-true models from traditional manufacturers. So here are some of the most popular:

Beechcraft King Air - More than 7,000 King Airs have come off the assembly line since 1964. The multipurpose King Air is 6-10 seated and costs decently. Rockwell Collins is standard in new models.

Cessna Caravan - An old school work horse, more than 2,500 Caravans have been manufactured since 1984. Single-engine designs have seating capacities of 14 and high STOL performance.

Piaggio Avanti - Ferrari’s superslim Avanti goes 390 mph, the fastest civilian turboprop. It’s for owner-pilots, 775 miles in range.

Pilatus PC-12 - More than 1,500 PC-12s were built since 1994. The large cabin seats 6-9 and has a flat floor. Because it is so quick to take off and land, a lot of little airports become accessible.

Daher TBM - Daher TBM, the fast French-designed turboprop that’s all you want for a piston twin price. It can fit 6-7 people, and is a favourite for owner-flagged runs under 1,000 miles.

Epic E1000 - New entry level, E1000 seats 6 in business class with Garmin’s most powerful flight computer. 300 knot cruise, 1,200 mile range makes it a great performer for owners.

No matter if your journey is a transportation of goods or one of luxury, these giants have got you covered.

Shopping New vs Used Turboprops

So when you buy your aircraft, you have to decide on whether to buy new or used. Below are some thoughts:

New

• State-of-the-art technology and cabin amenities.
• Warranty and Maintenance Services : Complete product support and warranty.
• Residual value protection
• Customize paint, interior, avionics
• 2-5 year wait for delivery date slot.

Used

• Huge savings over new builds
• History of servicing can reveal faults.
• Aftermarket components can be installed.
• Instant delivery; no waiting for shipment.
• Less depreciation already taken
• More ancient hardware may require replacement.

The latest features in new turboprops with the assurance of warranty. But they take forever to buy.

Buy used and you get access and a lot of savings. But budget extra for surprise repairs as outdated systems are serviced or updated.

Go to a professional aviation broker and search for good pre-owned. Make ready to run if the right plane comes along.

Financing Your Turboprop Purchase

Not many customers can afford a turboprop upfront so financing is very common. There are several options available:

• Bank Loans - Banks will give you as much as 80% of the purchase price however at very high interest rate and high fees. Lending terms: 10-years on new aircraft, under 5 years on second-hand. Monthly payments will be high. Banks review your books to get a foot in the door.
• Captive Financing - Many turboprop manufacturers have attractive financing through their own captive finance companies. And because they know what aircraft is worth, they can get you better terms. You get 10-15 years competitively financed with captive finance.
• Leasing - A good way to lease is with an aviation specific lessor. It decreases huge initial investment, even if monthly payments are higher. Maintenance and engine reserves are included in the lease. Terms run 5-7 years. Return or purchase the aircraft at lease-up.

Partnerships - Having a partner (or more) that owns you saves you money in the beginning and on the maintenance. Create a legal entity such as an LLC and craft a very elaborate partnership agreement covering everything ownership.

Fractions - Fractional ownership companies issue 1/8 or 1/16 shares of a turboprop. This shares use and expense among several owners. But the factions restrict access to shareholders only to a few hundred hours a year.

Seller Financing - You might be able to owner-finance some of the purchase price from sellers that are willing to cover the difference between your funds and a full purchase price bank loan.

A mix of 2 or more methods such as a down payment, bank finance and lease can make the best package.

Speak to aviation lending experts to run the numbers and pick out the right turboprop loan.

Placing an Offer and Negotiating the Agreement

After you’ve found the perfect turboprop to buy, time to place an offer and haggle.

• Send a written proposal including the price you would like to buy at and when you’d like to close.
• Conclude with price, closing date and repairs prior to closing.
• Determine who will pay for closing fees such as broker commission and title transfer.
• If it’s an older aircraft, condition the sale on a pre-buy inspection from your mechanic.
• Deposit a good amount to lock in the deal at close-out.
• Complete financing and escrow of moneys.
• Clear all the liens from the aircraft before you close.
• Check closing documents well before you sign.
• Last walkthrough check after delivery.
• Prepare FAA registration, title and sales tax forms.

If you buy a turboprop, prepare 30-60 days for closing.

Be willing to move quickly in order not to be passed over by another customer. And don’t close the deal without all things super clear.