On 21-Sep-2003, Jim Howell wrote:

Hello,

I'm new to flying and considering purchasing a plane with another
studen pilot. Can anyone point me to sample partnership agreements
and/or arrangements?

I would like to know how the expenses are generally shared
particularly for the case where one partner flies more than the other.



There are lots of different ways that co-ownerships can be arranged. One
typical agreement would have partners share equally in fixed expenses
(hangar/tiedown, insurance, annual inspection (at least the inspection part
of it), etc. Each partner pays for fuel used. Other expenses such as
maintenance and reserve for engine overhaul may be at least partially
pro-rated based on relative usage.

Assuming that you carry adequate liability insurance and the plane is for
personal use (including personal business) I don't think there is any reason
to incorporate.

Properly handled, a co-ownership arrangement will provide nearly all of the
benefits of sole ownership at a far smaller cost. This assumes that
individual usage is below 150 hrs/year. Above that figure the cost
advantages of co-ownership become smaller.

--
-Elliott Drucker