Airplane partnerships

Discussion in 'Flight Following' started by TBalch, Nov 8, 2018.

  1. TBalch

    TBalch Filing Flight Plan

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    I’m considering selling my Skylane and forming a Bonanza partnership. I’d like to hear general comments about partnerships, but I have a specific concern.

    The prospective partners have unequal financial resources, so I’m wondering about the advisability of having a partnership in which the partners have unequal percentages of ownership. The ownership percentages might bear a relationship to the expected usages of the airplane, but they might not.

    Thanks for any advice.
     
  2. Unit74

    Unit74 En-Route

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    Unless flight time is pro-rata as well, I don't see how that will work. Cheapskate A flies the crap out of the plane inducing more MX. Well-Off B pays for Cheapskate As cheapskatery habits, gets mad, pulls out and you are done.
     
  3. Morgan3820

    Morgan3820 Cleared for Takeoff

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    I don't see how an unequal ownership would work. I am not saying that it can't I just don't see how it would be set up equitably.
    Partnerships are all about the partners, kind of like marriage. I almost got into one but the other person developed a disqualifying medical condition. Now I own alone and rent to another pilot which IMO works better as I have control. With a partnership, everyone needs to be pulling on the same rope. I personally think that it is a bad idea to get into a partnership so one can afford more airplane. A friend did just that, then the partner had a life change and wanted out. He couldn't afford to buy him out, so the plane was sold and he is now plane less.
     
  4. Ken Ibold

    Ken Ibold Final Approach

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    I had problems arise when Open Checkbook partner wanted to upgrade, upgrade, upgrade and the other two of us needed to be a little more measured. He also felt entitled that he could leave the fuel tanks empty and use the plane every holiday weekend.
     
  5. Jamie Kirk

    Jamie Kirk Pre-takeoff checklist

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    Airplanes should be like wives. I’ll happily share yours but only I play in mine.
     
  6. Ryanb

    Ryanb Final Approach PoA Supporter

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    I have to agree with the crowd on this one. I don’t see how this could work realistically. One of the partners will ultimately be benefiting a lot more than the other(s). If each partner is not equally able to contribute to the pot, than I’d be looking for new candidates.
     
  7. Lndwarrior

    Lndwarrior Pre-takeoff checklist

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    I can't see how this would work for another reason - voting rights.

    In the partnership I was involved in we voted on all important decisions. It's the only fair way to do it.

    How would a lesser percentage partner vote count? It wouldn't be fair to the full partners for him to have an equal vote. Of course this would make the lesser partner feel like the poor step child of the group.

    Partnerships are delicate balances when set up properly. Creating unequal shares sounds like it could create all kinds of additional issues and hard feelings.
     
  8. midlifeflyer

    midlifeflyer Final Approach

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    It's definitely doable, but has to be well thought out and in writing.

    Based on some of the comments here, "well thought out" may require a bit of thinking outside the box. For obvious examples, will voting in such things as improvements and other management issues reflect ownership percentage? Will the dues be the same or different? Will hourly use and the rate be different for the different levels of ownership?

    Not as easy as equal co-ownerships. It really takes the forming group sitting down, perhaps with a knowledgeable advisor, and putting the arrangement in writing to avoide misunderstandings. In advance,
     
  9. SkyDog58

    SkyDog58 Touchdown! Greaser!

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    Why do you want to downgrade from a Skylane to a Bo?


    :D
     
  10. Terry M - 3CK (Chicago)

    Terry M - 3CK (Chicago) Pre-takeoff checklist

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    Can you afford to own the plane outright? What if you own the plane and lease it to the non-equity partnership. Each partner lays a much lower buy in, say $5000, which goes into an engine reserve or something. Then everyone, including you, pays the monthly dues (covers hangar, mx, insurance, registration and basic annual (not repairs) and all other annual fixed costs whether flown or not). That gets you access to the plane.

    Then an hourly charge for consumables and mx.

    Any profit comes to you. Any shortfall (shouldn't be any short of surprise repair early) comes from you.

    They have access and reduce cost of ownership. You have control.
     
  11. Bill Jennings

    Bill Jennings Final Approach

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    We started with just me and another pilot, but a third friend kept wanting in, so we sold him a 1/4 and kept the rest between the original two. That worked fine, but another friend kept wanting in, so the original guy and I sold another 1/4, so we're now all equal partners.