If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. |
|
|
Thread Tools | Display Modes |
|
#1
|
|||
|
|||
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
|
|||
|
|||
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
|
|||
|
|||
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. |
#4
|
|||
|
|||
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. |
#5
|
|||
|
|||
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. |
#6
|
|||
|
|||
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 |
#7
|
|||
|
|||
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 |
#8
|
|||
|
|||
Shared Ownership 1987 Mooney M20J
Steve,
I am a co-owner of a '79 Mooney 201 and have been for over 2 years now. Before buying the plane my partner and I had only rented and been in clubs so we were VERY green at the aircraft owning thing. In our case it might have been a little easier because since we didn't already own we knew that all the expenses would just be split down the middle. We found a plane that we both liked and then bought it (paid too much of course but that is another thread altogether). The way we work our partnership is that we have a Limited Liability Corporation that "owns" the plane and we own the corporation. As far as expenses go we start off the the month with an equal share of fixed costs that include the note on the plane, hanger rent, insurance escrow and XM weather for the month (gotta have that!!). Then we decided on an hourly wet rate that will include fuel, engine and prop reserve, and an escrow for the annual inspection. Any maintenance or upgrades gets split right down the middle and paid at the end of the month that the expense was encountered. I keep the books and send out a bill at the end of the month with the expectation that the money be deposited sometime in the week after the the bill was sent. I feel extremely fortunate to have found a great guy for a partner. We've never had an issue with money or availability of the aircraft, and I think these are the two biggest things that can kill a partnership. We would even entertain the possibility of one last partner but 3 would be the most we would do before availability could start to cloud the deal. Good luck and my opinion is that unless you have a LOT of extra disposable income, then a partnership is a great way to afford and fly a nice aircraft. Jon 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. |
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Mooney M20 K on Grass ? | Andrew Boyd | Owning | 0 | August 13th 04 03:00 PM |
Mooney M20J manual for sale | cjbgroups | Aviation Marketplace | 0 | March 19th 04 03:22 PM |