The best way to avoid conflict between private jet co-owners is by creating clear lines of communication and signing a well-planned legal agreement. In this scenario, owners will know who can authorize expenses, release the aircraft for charter, hire crew, and where to turn when conflict does arise. This is where a professional joint ownership and aircraft management company comes in.
Finding the Right Partner Is Crucial
Successful joint aircraft ownership revolves around strong relationship management and mutual understanding. Pairing two potential owners and ensuring they are a successful match is often the greatest obstacle to joint aircraft ownership. There are many factors to consider when selecting an appropriate partner, from finances to personality.
- Geography: Ideally, two owners will live no more than 30 minutes apart, or at least 15 minutes from the same airport.
- Mission profile: Are partners flying regionally, nationally, or internationally?
- Aircraft type: On top of serving mission profiles, what make or model matches your needs, and is there a preference for new or pre-owned aircraft?
- Expenses: While both partners may be financially capable of aircraft ownership, who is responsible for paying the different expenses related to maintenance, repairs, inspections, crewing, hangaring and more? What happens when one owner pays and the other does not?
- Authorization: Who approves expenses? If approval is needed, how does that communication process work? Who approves scheduling, pilot hires, etc.
- Supplemental Charter: Do owners want to sell flight hours? If so, how do they schedule hours and who authorizes use of the aircraft for charter?
- Scheduling: Scheduling often poses the biggest problem when searching for a compatible partner. When will you need the aircraft, and what happens when both owners need the asset at the same time?
- Maintenance: Who manages aircraft maintenance? Are both owners responsible, or is one owner in control?
- Crewing: Who is responsible for recruiting, hiring, training and paying pilots? Who communicates schedules to the pilots and is responsible for managing them?
- Exit plans: Do you have an expiration date on your agreement? What happens when the relationship sours, or if one party wants to leave?
- Sale: If both parties agree to sell, who markets the aircraft? How do parties agree on a final sale price, and how are funds divided after the sale?
- Communication: What mechanisms are used for communication between owners? How far in advance must a request for use or repairs be made?
- Personality: Do you trust your partner? Are there differences that would make the relationship difficult?
With a network of 20 Base locations nationwide and growing, Jet Linx has the connections, structure and expertise to pair you with not only the right aircraft, but also the right co-owner. Contact us today to learn more.