Fractional Ownership

[JETPILOT]

Has anyone here in the forum ever thought about putting together a corporation and dividing the purchase price of an airplane between 4 or 6 individuals. What might the pros and cons of this venture be.

My thoughts are an individual could afford to purchase a plane he might otherwise never afford.

A contract would be written up by a lawyer so it's legally binding. The rules would be layed out such as how the maintenance costs might be divided up among individuals who use the plane more than other individuals. How the plane is to be used. What times the engine and prop will be overhauled at. Etc.

It's happening with biz jets already. why hasn't GA caught on to this.

The only negative factor that might arise would be schedualing conflict. But then again something can be worked out in the contract.

I would rather take 50,000 dollars and invest in a quarter share of a Bonanza, than to invest the same money in lets say sole ownership of a Warrior or the like.

Any thoughts negative or positive would be appreciated.

[Mike]

Most of the people I know who have planes co-own them with other pilots. There are several books on the subject, and this has been common practice in GA since well before the bizjet fractional ownership programs became popular.

[HighFLyer]

Fractional ownership is a very common practice in GA. However there are numerous problems if things aren't thought out ahead of time.

First you want to make sure everyone is willing to spend the same amount of money in maintenance and operating costs. Gas isnt the only thing you need to fly!

Also you want to make sure that your partners have the same attitude about flying with you, and make sure you dont have the same flying needs as someone else-otherwise there could be trouble.

There are also numerous other aspects you want to consider. Generally the less people involved, the better.

While problem may arise, fractional ownership is a very worthwhile opportunity. You may make the best of friends with fellow owners, and the cost of flying can be brought way down. If you seriously consider your partners and plane, co-ownership is an awesome deal!!