Starting a Flight Group

[uberwang]

Hi Everyone,

I have an aircraft that I would like to make available to qualified pilots. I have a few questions and would appreciate some constructive feedback..

What are the requirements for setting up a sort of flight club or user group? I want to make it available to a set of people who will regulate the rental process with an online system on a first come first serve basis.

Obviously insurance has to match and this is not an issue. But to make sure the pilots are acceptable to me I decided to assess the candidates myself or have a friend do it. Nether of us are FIs but this is not a business and every pilot will be required to show a class rating. Is there a legal implication here doing it ourselves? I cannot see one.

As the idea is simply to help with the running/ownership costs and not make a profit I don't see a need for any special paperwork but perhaps someone can offer their opinion on that.

Thanks in advance.

Uber

[Jan Olieslagers]

* perhaps more response if you apply the typical UK vocabulary "syndicate"
* first and most of all, talk to your insurer (and/or look around for a new one)
* next, talk to the local CAA - unfortunately no option of selecting another one...

[foxmoth]

Not really a syndicate as he does not appear to be selling share but hire and those are the rules it needs to operate under, the maintenance needs to be of that standard but no real rules apart from that, legally speaking you do not need to do any sort of check on their licence or ability though of course you may have insurance problems if they ding it and their licence is not in order, so really up to you what checks you do.

[ETOPS]

What type of aircraft?

[uberwang]

Hi all,

Its a DA40-NG.

Have checked all the licenses so far myself and am satisfied they are all up to an acceptable standard.. The check flight is more about meeting them and be certain they will keep the aircraft in good shape and will pay for the usage the agreed rate.

This agreed rate is based on meeting the expected costs etc which we have checked into.

Maintenance is with an approved provider and is of a high standard.

Have not heard the term Syndicate before so will follow that up.

The insurer seems happy enough to offer a cover on multiple pilots as long as they are all qualified pilots.

Any further input based on that info?

Thanks

Uber

[Maoraigh1]

As Jan said, check with your CAA. If hire, different rules apply. I've been a share owner in an aircraft since 1990. This is an "equity" group, with 6 equal shares.
In the UK, the minimum is owning 5% of the aircraft.
I see "non-equity" group adverts in the UK, but don't​ know their legal status.
I do know of an aircraft where the owner sold a few 5% shares, maintaining overall control.

[foxmoth]

Non equity is just another form of hire, if you do not want to actually sell shares in your aircraft you are not interested in a syndicate as such though you might want to look at non equity groups. With this you charge a monthly rate that covers standing costs such as hangarage, insurance and annual maintenance then an hourly rate that covers the DOCs but the aircraft remains completely yours and technically you are still renting it out, this means that you cover monthly costs even if the aircraft does not fly, but you need to draw up some sort of agreement to cover things like do your group members still pay if the aircraft is grounded, especially if it is another member that causes it.