Annual expenses - how does a partnership split the costs?

[Mafoo]

Make sure you address how/when you decide upgrades are done, and how they are paid for...

With only two people, it is easy for the guy flying to say "We need this", and the non-flying guy to say "We don't need that"... Especially if the thought is upgrades are split 50/50 (which they should be, since they increase the value of the plane)...

Agreed.

Also, if he is not flying the plane ever, you might want to encourage him to sell the share, or see if you can find a 3rd partner to share expenses with.

 

[douglas393]

Glad you were able to work it out. Sound to me you are both committed both to your friendship, and keeping a plane to fly. Hope it works out in the future. Also you made me realize why a partnership would probably not work out for me and why I am glad I purchased my plane by myself.

Thanks

Doug

 

[Mafoo]

Glad you were able to work it out. Sound to me you are both committed both to your friendship, and keeping a plane to fly. Hope it works out in the future. Also you made me realize why a partnership would probably not work out for me and why I am glad I purchased my plane by myself.

Thanks

Doug

Funny thing is this thread had the opposite effect on me. I have 27K cash sitting in my checking account right now waiting to go to a share plane.

There are a lot of suitable aircraft I could buy outright with that money, but I then have to pay 100% of:

Annuals
Hanger
Insurance
GPS subscriptions


Paying 100% of that stuff is just outside of my budget. Nice to be reminded why we have partners.

 

[jbarrass]

I've had my last 2 planes in a 50/50 split. It has worked extremely well. The key has been a baseline agreement in writing, and flexibility in practice. The agreement includes a clear exit strategy.

It is critical to share a common "philosophy" on aviating. If one partner wants bells & whistles and the other thinks one radio and a VOR is the deal, it will be a high drama affair.

 

[wabower]

Usage patterns are equally important. I flew primarily on week days, my co-owner was a week-end user. I got thanksgiving weekend and most weekdays, he got most of the weekends and a few full weeks for vacations and meetings. Perfect deal for both.