Holloway
23rd Aug 2002, 12:30
How does group ownership work? and how much does it cost for 2 seater plane and then the running costs etc?? Do you have to have 6 people at one airport? and how do you share the plane out?? One person has it per day?
Thanks for your help people
foghorn
23rd Aug 2002, 12:50
There are two ways: a private group, or via a limited company.
Some people have the aircraft owned by a limited company and then the members own shares in that company. This then operates like any other company (except that you try your damndest not to run it at a profit to keep it VAT and tax neutral) The benefits to this are the well-defined legal structure that a company gives re. share structure and limited liability. The downside is that you need to be VAT registered and you need to comply with company and taxation law - lots of paperwork and additional costs. It is possible that JAR regulations might effectively rule out this way of sharing a/c in future.
Others just form an informal private grouping and 'share' ownership of the aircraft via written agreements. The CAA handles the legal registration of shared ownership. The upside is that the group is administratively simpler to run, the downside is that liability is unlimited for members of the group, and things can get ugly if the written agreements are poor and certain group members play silly bu**ers and try it on.
As for costs for a two seater, well, how long is a piece of string?
It depends on type, engine size, age/hours, home base airfield, hours flown per year etc. etc. etc.
Expect in the region £50-100 pm fixed cost plus £30-40 per hour wet running costs for a C150/152 or similar private C-of-A aircraft based at your average field, based on around 5 sharing.
It usually works the best if all the sharers can access the one airport, or some people get left out. Booking wise, it's up to the group, we do it in three blocks per day - 0900-1300, 1300-1800, 1800-0900D+1 (all local). The only other limitation we put on is that all trips away for longer than 2 nights must be cleared with the whole group, and anyone who take the a/c for more than three weekends in any one year must clear it with the group.
Hope this gives you a flavour of group flying - please feel free to e-mail me if there are any other questions you want ot ask.
cheers!
foggy.