August 12, 2013. The idea of having a private pilot and aircraft at your fingertips sounds more than appealing. The thought of no longer having a long layover in an airport or having your travel plans completely thrown due to delays could be enough for any traveling professional to agree to the purchase of a private jet. Before jumping on for a ride, it is important that your business or you as a business owner have a detailed written agreement in place covering all terms and scenarios.
Private jet ownership agreements have been around for years and over recent years, have become more common. If you are considering taking on this responsibility, be knowledgeable of your options ahead of time and determine which agreement best suits your needs. Below are examples of some common agreements for private aircrafts.
- Full Ownership: Individual or entity owns 100% of the aircraft.
- Co-Ownership: Multiple companies or individuals share ownership of the aircraft.
- Joint Ownership: Legally share costs and justify an aircraft at lower utilization rates.
- Fractional Ownership: Company or individual buys a share of an aircraft and the fractional program manager handles all of the details related to flight operations.
- Charter: Gives the opportunity to choose which aircraft, what airport and when to arrive and take off.
- Interchange: A narrow arrangement useful for two or more companies or individuals, each owning an aircraft, to swap time.
Consult with an attorney to determine your best interests are covered and that this commitment still sounds as appealing as it originally did.
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