Cessna 172 fractional ownership agreement

[Christophermp]

Hello all,

I am new, to this site, and wanted to ask for advice and opinions on organizing three partners who will each own a third of a Cessna 172.

Pros vs cons

Red flags

Success stories and what worked.

Thanks in advance.

Christopher

[ChickenHouse]

First thought, is the amount of one third of ownership you are thinking of sufficient to run an aircraft one third of price? If so, seriously take a second thought - an old 25,000 C172s usability is not far from a newer 75,000 C172 and you would not have the hazzle with other people (pilots have a tendency to not really be the best in such close groups). Even a 250,000 C172 will give you only glass, a 40 percent increase in fuel burn for 10 percent more knots and reduced usable load, compared to an old 20,000 C172.

Avoid fractional ownership, if your fraction would suit a smaller aircraft run on your own.

If you talk one third of a budget plane and it is your only chance to stay airborn, look for a group of people without friendship. It helps to be professional.

[PA28181]

I'm struggling to understand a word of that....

[Pace]

Christopher

Be careful I owned a quarter share in a retractable and it was a disaster because of one member.

He landed it heavy damaged the prop and nose wheel meaning a shock load test and no access to the plane for a good six months.

The same idiot landed gear up going around with a bent prop this time 9 months no fly for the rest of the group.

Accident damaged we sold it getting half our original money back.
While some groups work well be very selective about the pilots you take into the group as well as making sure usage and charges reflect the group or one guy will end up doing all the flying at the expense of the rest.

I would rather pay more per hour and walk away if anything goes wrong than by buying into an expensive headache caused by others

Pace

[Maoraigh1]

I bought a 1/6 share in a Jodel DR1050 26 years ago. We've had 2 insurance write-off in that time, but no problem since 1999. I'm still getting bargain flying.
You only need the common purpose of wanting cheap flying. More than 3 is good for handling disagreements, but not many more.

[Pace]

M

26 years in a group is amazing . Are there other original members still in the group or only yourself
Did you mean write off literally is the aircraft is not the orginal one or you had two accidents in that time ?

Pace

[Maoraigh1]

One member has been there longer than me. Five months after I joined a forced landing was an insurance write-off. One member bought the wreck, left the Group, and flew it for several years after rebuild. The next aircraft was flown into cloud, leading to a loss-of-control fatal. The present aircraft was bought in December 1999. One other member has been 17+ years. Three are less than 5 years.
PS We don't have a detailed Group agreement - it's just a few lines.

[Christophermp]

Thanks ChickenHouse

I am looking at a low cost 172 that would be owned by two or three people each member would pay 10 - 12 K for the aircraft and split insurance and maint. probably through a per hour cost to use the plane.

I am primarily interested to have an aircraft to train on while completing my private lic. and when I am licensed for occasional use to keep current until I purchase my own aircraft.

I know one of the other buyers as we are in the same field (fire fighters) and not the 3rd.

Is it common that any repairs are the sole responsibility of the individual flying when the damage occurs or shared amongst the owners (up to the insurance deductible)?

Thanks

[Christophermp]

Thanks Pace

Luckily this is C172 with tricycle gear, so no wheels up landing ;-)

How were the repair costs handled? Did the partner who caused the damage pay all of the costs or the full deductible? How would you select or consider other possible owners as we all have less than 100 hours?

Thanks

[Christophermp]

Thanks Maoraigh1

What would an average year of flying costs look like using your example, if you are willing to share the information? And how many hours per year?

Christopher