Should I buy an aircraft share?

[polysciguy9]

Hey guys, I'm new to this message board, so forgive me if this has been asked in the past and I just didn't see it.

As a new private pilot, is it cost effective to purchase a 1/3 - 1/5 share of a small GA aircraft to build the hours necessary for advancement? I've seen ads where people with 150s, 172s and Cherokee 180s are offering a partial share for around $7,000 to $10,000. I know that there are fees associated with this, and know the maintenance demands of an aircraft such as this (one ad said operation costs were around $15 p/hour). I'm not in a huge hury to build hours - I'd like to be a CFI in two to three years (not necessarily looking to join a regional airline - just want to see where my flying takes me). Also, does anyone know what the typical insurance costs are for a new private pilot who has partial ownership of a plane?

Thanks for your help!

 

[Vector4fun]

Two potential problems:

1. You want to really be sure you're "compatable" with your partners. That is, you have similar ideas about maint. and upkeep. These deals go sour when one partner wants something fixed, and the other two don't want to pony up the cash for their share, or their time.

2. As a new Private Pilot, you may cause their insurance to rise. Depends on the aircraft and policy though. If it's a big jump, they may well expect you to foot the bill for the entire increase. Generally, rates go down if all pilots have around 500 hrs and an Instrument rating. May not matter much on an older C172 with a low hull value. Could be a very big deal on a retract or taildragger. Just depends on the Policy and carrier.

 

[polysciguy9]

Thanks for the help - I'll definitely take these things into consideration!

 

[JimNtexas]

A partnership is by far the best way to operate GA aircraft. Even a small GA airplane can generate a lot more flying than most people can use, so sharing makes a lot of sense.

Here are some things I'd take into consideration:

1) Even though you are a new pilot, you will be a full partner or you won't buy in. I was offered a "partnerships" by a father and his adult son in a Mooney. They wanted to "share" one half, but operate the partnership in all respects like there were 3 partners except for the buy in and fixed cost sharing. Essentially they wanted a sucker to pay for their engine overhaul.

2) Of course if you pay money you get a proportional fee simple ownership in the airplane, or its not a partnership at all.

3) Make sure that fixed and variable costs are shared fairly. Most partnerships maintain a maintance reserve, make sure the reserve really exists by asking to see their bank statements. Some partnerships run large reserves, others just assess the members for large expenses. Either can work, but make sure you know what to expect.

4) Make sure you understand any plans they have for upgrading and maintaining the airplanes. Some partnerships routinely repaint, redo interiors, and add avionics. Others have planes that are maintained in an airworthy condition, but radios, paint, and interior are unchanged since they left the factory in 1965. Either philosophy works fine, just make sure you are in synch with the other partners on the subject of upgrades.

5) Make sure the scheduling system works for you. Some partnerships have "priority weeks", others just allow users to block out time as they want. Make sure you're happy with the system the partnership uses. No real partnership requires a minium time per day.

6) The fewer the number of partners, the more extensive your pre-buy inspection should be.

A good partnership is impossible to beat!

 

[English]

Another thumbs up for the partnership here.

I say go for it - just make sure you pick partners with the same ideas about money and finances as you. In other words, if you are the kind of person that pays your bills in full every month, puts 10% away a year in savings, and has impeccable credit, then go with a partner with the same ideals. The rest of the stuff like scheduling is easy to work out. Money seems to also cause problems between friends if not handled properly.