Flight Consumables Costs
Leighnor Aircraft LLC rents our aircraft dry, which means the rental rate is without fuel and other consumables costs. Flight consumables costs make up the operating cost of supplies the aircraft will use during flight. The vast bulk of this cost is fuel, with small allocations for oil, de-icing (if it is a ramp-based Prescott aircraft) and supplies. For more details, see our detailed explanation.
Fuel cost updates will vary by location. Cutter FBO at Prescott typically updates fuel prices weekly. Cottonwood updates fuel prices when a new fuel shipment comes in.
Consumables costs, unlike the fuel surcharge, are not taxable as Arizona TPT tax (sales tax) is fully paid on all items that make up the consumables cost.
Prescott Fuel Price 2/21/2024
Current Fuel Price 100LL: $6.69/gal Change: +$.08
Current Fuel Price JET-A: $8.26/gal Change: +$.12
Cottonwood Fuel Price 12/20/2023
Current Fuel Price: $5.45/gal
Price Change: -$.35
Dry Rental Rates Detailed Explanation
Aircraft rental rates are dry - what "dry" means is that fuel and other consumable costs are not included in the direct rental rate of the aircraft. These costs were separated out for two reasons:
- The costs have become highly variable in the current economy and require frequent change.
- Due to Arizona law, the state is requiring Leighnor Aircraft LLC to double-tax on fuel and consumables costs.
When a cost such as fuel is included in a product or service, Arizona law requires that Transaction Privilege Tax (sales tax) be taken on the cost of that product or service - in Leighnor Aircraft LLC's case, aircraft rental. However, if the charge is separated out from the product or service and all taxes have been paid on that item, then no TPT tax is necessary. As all fuel purchases and consumable items are purchased with tax paid, there is no requirement to collect TPT tax for any consumable item such as fuel and oil.
Customers still pay for fuel and other consumable costs, it's just a separate line item on the flight invoice instead of included in the rental rate. For each hour of flight, a line item will be added for the equivalent amount of flight consumables. If the flight was one hour, the customer is billed one hour of flight consumables. Likewise, if the flight was one and a half hours, then one and half hours of flight consumables will be billed.
This method of billing saves the customer and Leighnor Aircraft LLC money. The customer saves by not paying TPT tax on the flight consumables. For example, flight consumables charges for a 172S are currently $70.90 per hour. The TPT tax amount on this charge is $5.92 per hour which the customer is no longer paying. Leighnor Aircraft LLC benefits by paying less money to the state of Arizona for TPT tax and the city of Prescott for airport use fees, which are calculated off taxable sales.