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Old 13th May 2007 | 22:58
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Chilli Monster
 
Joined: Oct 1999
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Originally Posted by Mike Cross
A one fifth share in aircraft with a 5k engine fund is worth 1000 quid more than a fifth share in the same a/c with no engine fund.
I see what you're getting at - but I disagree in part

The aircraft share, if you like, remains the constant.

If you have an engine fund - the value stays the same. However, in your scenario I'd say the share is worth £1000 less if there is no fund.

After all - you're not buying the money someone has already paid in through flying the aircraft. They've flown it, they've put the hours on the engine, they pay for it. It's part of the running costs - not part of the share capital.
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