Buy An Aircraft Partnership - What Are The Costs?

broken image

When you have an interest in purchasing aircraft, the aircraft partnership occurs when you purchase one from a partner and then use their planes for your own operations. This allows you to build your own fleet without having to purchase or insure, your own planes. People the aircraft partnership program because they do not have to worry about buying, or maintaining planes for their business. Others prefer an aircraft partnership because they do not want to deal with the hassle of doing all of the maintenance, or worrying about purchasing the right pilot and flying their planes. Either way, aircraft partnerships can be a solid option for those who are interested in owning aircraft but do not have the capital to purchase their own jets.

An aircraft partnership is formed when you enter into an agreement with a partner. The agreement states that if the partner is unable to provide service on the scheduled dates, they will repay you the money owed under the agreement. Generally, partners share in the cost of operation through fees, but you do not have to pay anything upfront. It is considered a win-win situation for both parties.

If you are going to buy aircraft from a partner, they will send you documents to sign. In most cases, this includes financial documents like business permits and financial statements. Once you agree to purchase aircraft from them, you can usually get a release of debt, which means you are debt-free. This means you will not have to pay back any of the money that you contribute to the partnership until your airplane has been in service for at least one year. A release of debt will relieve you of your personal liability for the aircraft while it is in your ownership and will also relieve you of your co-owner's liability.

Before you decide whether to go through an aircraft broker or try to buy the planes yourself, you should consider how much time you would save by buying the plane yourself. If you find it difficult to put together the paperwork or spend too much time waiting for approval from the dealer, you may benefit more by going through an agent. You need to consider how much time you will be able to spend flying, because buying an aircraft will take up a lot of your time if you are required to fly frequently. Check out this website to get the best private flight club.

You must consider your level of flying ability before you enter into an agreement with your partner. The higher your level, the more time and effort you will need to invest to achieve commercial success. You will want to be certain that your new company is capable of making the payments on time. If your new partner cannot afford to make the payments on time, you could find yourself out of business before your partner ever finds out about it. You should never buy an aircraft with your credit cards unless you can afford it. Do not purchase an aircraft with a large balance on your card. 

Buy an aircraft from an aircraft partnership if you are confident you can resell it. If you buy the plane "as is", you will have no chance of reselling it or making any profit on it. Reselling used aircraft is illegal and can result in serious fines and penalties. You may not even be able to obtain financing to buy your aircraft. If you do not intend to resell the plane, you should avoid an aircraft partnership agreement. Check out this website: https://en.wikipedia.org/wiki/Fractional_ownership_of_aircraft to get more insight about this topic.