AIRCRAFT PARTNERSHIPS
An aircraft partnership can be an affordable method of owning and operating an airplane compared to sole ownership. It can offer flexibility and the opportunity to fly the aircraft yourself.
Some of the advantages of partnerships are:
- shared acquisition costs
- shared cost of fixed and variable maintenance expenses
- shared cost of insurance premiums
- shared cost of hangar rent
- affordability of a better aircraft than would be possible under sole aircraft ownership
- control of the condition and maintenance of the aircraft
Along with the advantages are disadvantages such as the issue of less than 100% aircraft availability and potential differences between the owners about the standard of maintenance and what engine or avionics upgrades should be made to the aircraft.
Cessna 414A - Southwest Florida
SOME OF THE KEYS TO A SUCCESSFUL PARTNERSHIP
Compatibility, similar geographical location, similar financial resources (if it is to be a 50/50 partnership), similar flight hours/experience and similar philosophy on level of safety including safe operation of the aircraft, insurance requirements including deductibles and a satisfactory exit strategy can go a long way in making for a successful partnership.
Some of the areas that need to be addressed in a formal manner are:
- Determination of value of the aircraft at time of acquisition, sale
- Hourly/monthly set aside for annual maintenance inspection & other repetitive maintenance issues
- Hourly set aside for engine & propeller overhaul
- Additional hourly set aside for unexpected maintenance issues such as Ads
- What level of maintenance will be accomplished i.e. will every inoperative component be corrected prior to the next flight, will every SB be complied with, will 100 hour inspections be complied with?
- Who will keep track of aircraft hours, discrepancies and schedule maintenance
- Who will keep track of financial issues
- How much fuel to leave in the aircraft at the end of each flight, and how to notify the other pilot is a different amount is desired at the end of their flight or is left at the end of their flight.
- Who pays the deductible if damage has occurred to the aircraft
- What happens to the share that one owner has in the event of his/her death?
AOPA has an example of a contract for aircraft partners. You will want to look this over. You will also want to develop your own agreed to contract.
Other means of air transportation:
- Airline
- Charter
- Aircraft Rental
- Aircraft Leases
- Flying Clubs
- Part Ownership with others managing the aircraft, pilots, etc. ala NetJets, Flight Options etc.
Airline travel with its impressive safety record is practical for long flights and where only one or two people are going to one destination. Airworthiness of the aircraft and the go/no go decision is up to the company once you’re on the airplane.
Charter, with its good safety record, has the advantage of being able to choose from multiple sizes and speeds of aircraft but cost is often prohibitive. Airworthiness of the aircraft is up to the company and the person has a say in whether to take the flight or not as he can talk to the pilot(s) about the weather conditions expected along the route.
Aircraft rental may be okay for some people but the aircraft is usually a slow variety with few options such as air conditioning, radar, de-ice, and the pilot has no control over the condition of the aircraft, maintenance and otherwise.
Aircraft leases can be good when the person finds the right aircraft with acceptable terms. With leases you’re committed to a specific aircraft which may not meet your needs on a certain day and so a charter may be needed for a larger number of passengers, or a longer flight is needed etc. Who ensures that cosmetic and airworthiness of the aircraft is acceptable should be determined within the contract.
If there are multiple types of aircraft available, flying clubs can be practical depending on how well the club is run. Availability and maintenance on the aircraft can be a source of contention but the lower monthly fees and operating costs may be well worth it.
Part Ownerships,
i.e NetJets, Flight Options etc. allows the part owner a certain amount of flying time per year. The managing company arranges scheduling, maintenance and provides pilot service. They may allow a larger plane to be used on a specific flight by attributing more than one hour of flight on your aircraft for every hour flown. The go/no go decision on a flight may be made between the owner and the company. Many people have found this mode of transportation to be acceptable - others would rather pilot the aircraft themselves.