Aviation Investments

Our Approach

We purchase general‑aviation aircraft—typically single‑engine planes used for flight training—and lease them to reputable flight schools.  Under these leaseback agreements, the school uses the aircraft for instruction, pays most of the operating expenses and remits a portion of the rental income to us.  When a plane isn’t booked (which is rare), we may rent it ourselves by the hour, generating additional revenue.  As a shareholder in Profit Prophet Capital, you participate in the profits from these leaseback arrangements.

A leaseback is essentially a management contract for an aircraft you own.  We provide the aircraft to a flight school, and the school is responsible for marketing, scheduling, training and day‑to‑day operations.  At the end of each month, if rental income exceeds expenses, the school sends us a check; if expenses exceed income, we receive a bill.  Typical returns vary: plane owners often receive monthly checks around $1,500, though amounts can be higher or lower.  Because our fleet includes multiple aircraft at different schools, we smooth out the variability of individual planes.  We set aside reserves for maintenance and engine overhauls to avoid surprises.  Profits from leasebacks are distributed to shareholders as dividends. 

Benefits

• Fixed costs covered: In a leaseback, the flight school pays for hangar or tie‑down fees, insurance and routine operating costs.  Your fixed expenses are largely covered.
   
• Lower personal flying costs: Because you own the planes, any time we use them ourselves we typically pay only for fuel, reducing the cost of flight hours when we charter them during idle periods.
   
• Potential positive cash flow: Well‑utilized training aircraft can generate consistent rental income.  Plane owners sometimes earn enough to pay off the aircraft within four to five years.
   
• Accelerated depreciation and tax benefits: Owning aircraft allows us to claim accelerated depreciation deductions, which can enhance after‑tax returns.
   
• Asset ownership: Unlike a pure rental, we retain ownership of the planes; once the aircraft is paid off, ongoing rental income has the potential to produce attractive yields.

Risks to Consider

• Leaseback contracts favor the operator: Agreements are often drafted to benefit the flight school or FBO.  Without careful negotiation, owners can end up responsible for unexpected costs.
   
• Maintenance and wear: Training aircraft experience heavy use; maintenance “surprises” costing thousands of dollars can arise.  Aircraft wear and tear is accelerated during flight training, and schools may be rough on their fleets.  We mitigate this by setting aside reserves and working only with schools that adhere to strict maintenance standards.
   
• Variable income: Rental income fluctuates with flight‑training demand and aircraft downtime.  Some months produce strong cash flow; others may result in lower or even negative net income.
   
• Liability and regulatory compliance: Aviation carries inherent liability risks.  We maintain proper insurance and ensure that aircraft meet all Federal Aviation Administration (FAA) regulations, but accidents or regulatory changes could impact operations.
   
• Selection risk: Choosing the right aircraft and school is critical.  Experts advise conducting thorough inspections and due diligence before entering a leaseback; poorly maintained aircraft or disreputable schools can turn an asset into a liability.

• Experienced management: We have extensive experience in aircraft acquisition, maintenance and leaseback negotiations.  We vet each flight school’s safety record and financial stability to reduce operational and credit risk.
   
• Diversified fleet: By leasing multiple planes to different schools, we spread the risk of downtime or under‑utilization.
   
• Maintenance reserves: We budget for engine overhauls, major inspections and unexpected repairs so that maintenance costs don’t erode dividends.
   
• Aligned incentives: As with all our investments, there are no management fees.  Our returns come from the same leaseback profits that flow to shareholders, so we are incentivized to maximize utilization and minimize downtime.
   
• Transparency: Investors receive detailed reports on aircraft utilization, income, expenses and maintenance.  You’ll know which schools operate each plane and how each leaseback performs.