leaseback...sort of

[Aztec Driver]

Would a flight school who has several other leasebacks on their line have any interest in doing a leaseback where they are the ones responsible for all maintenance and expenses, without having to pay the owner any percentage?

I am not interested in "making" money on my aircraft, but I do not want the extra expense involved with allowing others to use the plane. I do not use it much and would like to sell it, but I also would like to have the use of it a few times a year when I have trips to make. I would rent, but there is nothing similar to it within a reasonable distance.

There would be an issue about engine time and engine replacement, but I assume something could be worked out with that.

And,I assume, liability might be an issue for me.

 

[James331]

Probably, but I doubt they would be game if you wanted them to pay for an engine overhaul or something else major that's coming up.

 

[Mistake Not...]

I know this isn't the question you asked, but I was briefly in a situation where I might have been away from my airplane for a year or so.

Personally, I'd much rather pay a CFII-friend to fly it a few times a month than put it on leaseback. Given what might happen to it (rental: fly it like you stole it), it might be cheaper to keep paying your carrying costs + instructor time until you can sell it.

I know leasebacks work for many people, but the thought of a stranger flying MY plane... *shudder*

 

[N747JB]

I'd be more inclined to look for a non-equity partner or two to fly it, pay you an hourly fee, and you would have priority on scheduling. There may be folks near you that need the use of a nice airplane and are willing to take care of it and keep it nice. Rentals, not so much.

 

[rbridges]

have you consered a partnership with a couple of other people?

 

[kgruber]

A lease is a lease. You can write it with any terms the two of you agree on.

I know of many aircraft leases where the lessee pays for EVERYTHING, and flys a guaranteed amount of time every month.

 

[cirrusmx]

i would keep away from leasebacks to flight schools. You will end up with a beaten up airplane in which the loss of value will far surpass the few thousands you save in expenses. In most of the cases you are assuming all the capital risk so another party can profit. not my cup of tea.

 

[AdamZ]

Bryon, I think most lease backs I've seen provide that the owner pays for Insurance and Mx and gets 80% of the rate. Of course this is America so anything is negotiable. I believe the FBO where I learned works it in reverse. They pick up Mx and costs but keep 80% of the hourly rate at least that's what I recall being told. Not sure how the owner pays but there has to be some limitation on use or perhaps a discounted rate.

 

[jmp470]

I'm not an expert, however, aren't most jet leases set up this way? I know when a friend leased his CJ3 out, the leaser paid for everything and paid a set $ amount per hour. Additionally, they guaranteed a certain amount of hours each month on the aircraft. So even if the airplane wasn't flown, he was paid a set amount of $ per month. If something big broke, the leaser was responsible for it too. It was very much a win - win for him. He based the $ per hour on the depreciation he was expecting on the jet.

 

[frfly172]

Most flight schools will do a leaseback,until the engine times out,then your on your own. Most aircraft after a lease back need paint,interior and overhaul. Read any lease agreement carefully.

 

[JimNtexas]

Most flight schools will do a leaseback,until the engine times out,then your on your own. Most aircraft after a lease back need paint,interior and overhaul. Read any lease agreement carefully.

You left off a few other things that the owner will find after the airplane has been FBO rented for a while:

1) Several small knobs sheared off various radios.
2) Deep scratches near the fuel caps.
3) Strange smells that you can't quite get rid off.
4) The airplane no long trims straight and level.
5) Headphone jacks pulled out of the panel.
6) Areas of the windshield appear to have been sandpapered.

etc, etc, etc


Finding some responsible pilots to fly it as partners or non-owner named insured under whatever terms everyone can agree on is a better alternative for owners with 'nice' airplanes.

 

[evapilotaz]

I take care of rentals Like their my own airplane. That's just me.

 

[poadeleted20]

Would a flight school who has several other leasebacks on their line have any interest in doing a leaseback where they are the ones responsible for all maintenance and expenses, without having to pay the owner any percentage?

That would probably depend on what the monthly payment would be, but usually flight schools want to keep it on a per-hour basis and shift as much financial risk to the owner as possible. Of course, everything's negotiable if the school wants more planes bad enough.

And,I assume, liability might be an issue for me.

Depends how you structure it. If you transfer ownership of the plane to a corporation, and allow the school complete operational and maintenance control, there's not much liability left for you. Talk to a lawyer who knows this field and your state's business and liability laws for details.