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#1
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Shared Ownership 1987 Mooney M20J
I am not flying my plane enough and would like to consider a
partnership arrangement for the aircraft. I plan on having the aircraft based on the west coast. I hope to start a partnership with 1/4 shares at 22500.00 I am new to the dynamics of sharing ownership and flying costs. Just curious if there is anybody that can share experiece with a shared aircraft arrangement. |
#2
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Shared Ownership 1987 Mooney M20J [warning: Long response]
"Steve B" wrote in message oups.com... I am not flying my plane enough and would like to consider a partnership arrangement for the aircraft. I plan on having the aircraft based on the west coast. I hope to start a partnership with 1/4 shares at 22500.00 I am new to the dynamics of sharing ownership and flying costs. Just curious if there is anybody that can share experiece with a shared aircraft arrangement. Hi Steve, Where on the west(left) coast. I have no direct experience with shared ownership. I have however read a couple articles about ownership plans. One in particular was written a couple years ago by one of the editors of Flying Mag. In that case the airplane was shared by owners NOT all in the same geographic location. Well, two of them were and the other two weren't. In order to share, the airplane's home base was changed periodically. As I recall, that scheme worked well enough for the sharing to work for four years or so. The editor pulled out because he wanted to step up to a higher performance craft. I'm not suggesting that is the way to go, but you can think about it. At this time, I'm in an "association" with four other pilots. I can't really call it a partnership because, in this case, one of the pilots is the outright owner of the airplane. The other four have no equity in the airplane. And it is not under any mortgage. The five of us operate under a set of mutually agreed upon rules pretty much the way a club would operate. The aircraft owner keeps all the records, pays the bills, etc. At the beginning of each year, the owner tallies up the cost of operation, and projects (guesstimates) what it will cost for the coming year to put money in the kitty for insurance, airport fees, etc. and that divided by 12 and 5 becomes the monthly dues. The cost of maintenance (cleaning the plugs, changing the oil and filters, annual, etc.) is divided by the number of hours the airplane was flown and that becomes the hourly rate. Each pilot is expected to top off the tanks after each flight so the next person on the schedule starts with full tanks (minus a gallon or three now and then, but it is not a big deal). The informal arrangement works pretty well for us. We have an on-line calendar for scheduling and I haven't seen any conflict in the year or so I've been in the gang. The airplane went to Osh this last year and was gone from home for ten days. Nobody seemed to care. I've warned in advance that I plan on doing a two-week junket around the western states next summer and no one is griping. I have the luxury of being self-employed and the airplane is almost always available to me Monday through Friday for two and three day trips. I leave the weekends for the rest of the guys unless I have a pressing need. I hope this gives you some ideas. Regards, Casey Wilson Freelance Writer and Photographer |
#3
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Shared Ownership 1987 Mooney M20J
Steve B wrote: I am not flying my plane enough and would like to consider a partnership arrangement for the aircraft. I plan on having the aircraft based on the west coast. I hope to start a partnership with 1/4 shares at 22500.00 I am new to the dynamics of sharing ownership and flying costs. Just curious if there is anybody that can share experiece with a shared aircraft arrangement. For Mooney it comes out to about $40/hr dry plus $500 month, assuming a $60/month tie down (which you would divide). That doesn't include insurance or GPS updates though. That does include annual property tax. -Robert |
#4
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Shared Ownership 1987 Mooney M20J [warning: Long response]
N2310D wrote:
At this time, I'm in an "association" with four other pilots. I can't really call it a partnership because, in this case, one of the pilots is the outright owner of the airplane. The other four have no equity in the airplane. And it is not under any mortgage. How do you handle insurance? That agreement sounds like the owner is renting the aircraft to you, without officially and legally stating that's he's actually renting. I would think this might get interesting, in a very bad way, if the airplane gets bent. |
#5
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Shared Ownership 1987 Mooney M20J [warning: Long response]
"B A R R Y" wrote in message . .. N2310D wrote: At this time, I'm in an "association" with four other pilots. I can't really call it a partnership because, in this case, one of the pilots is the outright owner of the airplane. The other four have no equity in the airplane. And it is not under any mortgage. How do you handle insurance? That agreement sounds like the owner is renting the aircraft to you, without officially and legally stating that's he's actually renting. I would think this might get interesting, in a very bad way, if the airplane gets bent. The owner lists all five pilots on the policy. The pilots pay an equal share of the premium cost. The insurance company is happy with the arrangement. |
#6
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Shared Ownership 1987 Mooney M20J [warning: Long response]
N2310D wrote:
The owner lists all five pilots on the policy. The pilots pay an equal share of the premium cost. The insurance company is happy with the arrangement. That makes sense. It's also less informal than I originally would have thought, because all of you ARE listed together on paper somewhere. |
#7
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Shared Ownership 1987 Mooney M20J [warning: Long response]
B A R R Y wrote: N2310D wrote: The owner lists all five pilots on the policy. The pilots pay an equal share of the premium cost. The insurance company is happy with the arrangement. That makes sense. It's also less informal than I originally would have thought, because all of you ARE listed together on paper somewhere. You have to be. For a pilot to be covered under the open warranty he has to be restricted to "causal" access to the aircraft. Rule of thumb in the industry is that if the pilot has his own set of keys then its probably not "casual access". -Robert |
#8
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Shared Ownership 1987 Mooney M20J [warning: Long response]
Robert M. Gary wrote:
B A R R Y wrote: N2310D wrote: The owner lists all five pilots on the policy. The pilots pay an equal share of the premium cost. The insurance company is happy with the arrangement. That makes sense. It's also less informal than I originally would have thought, because all of you ARE listed together on paper somewhere. You have to be. For a pilot to be covered under the open warranty he has to be restricted to "causal" access to the aircraft. Rule of thumb in the industry is that if the pilot has his own set of keys then its probably not "casual access". That's how I understand it, and that's how my two owner aircraft is set up. We both coughed up 1/2 the equity, it's registered to both of us, etc... However, N2310D's original description sounded a lot like a single owner renting or bartering blocks of time to cover his ownership costs. |
#9
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Shared Ownership 1987 Mooney M20J [warning: Long response]
B A R R Y wrote: Robert M. Gary wrote: That's how I understand it, and that's how my two owner aircraft is set up. We both coughed up 1/2 the equity, it's registered to both of us, etc... However, N2310D's original description sounded a lot like a single owner renting or bartering blocks of time to cover his ownership costs. Yea, you'd want to be real careful with that, both from the FAA and the insurance side. You don't want it to look like you're renting the plane out (even if you're only renting to a few pilots). -Robert |
#10
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Shared Ownership 1987 Mooney M20J [warning: Long response]
If you have a partnership on an airplane with three
partners... and two partners are flying together and crash and die, also killing some people on the ground... The surviving partner is legally liable as the owner of the airplane... His personal assets are on the line;home, businesses, everything. Incorporation and owning shares protects your assets. "Robert M. Gary" wrote in message oups.com... | | B A R R Y wrote: | Robert M. Gary wrote: | That's how I understand it, and that's how my two owner aircraft is set | up. We both coughed up 1/2 the equity, it's registered to both of us, | etc... | | However, N2310D's original description sounded a lot like a single owner | renting or bartering blocks of time to cover his ownership costs. | | Yea, you'd want to be real careful with that, both from the FAA and the | insurance side. You don't want it to look like you're renting the plane | out (even if you're only renting to a few pilots). | | -Robert | |
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