Partnership liabilities

[jhoyt]

For those of you in partnerships--or previously-- how have you all split up potential airframe damage issues? I've got a few scenarios below:

e.g. hard landing that damages front wheel--who pays? Pilot or shared w partner?

e.g. wheels up landing that trashes engine-- Pilot or shared?

e.g. plane hits pole while taxiing, wing has to be replaced--pilot or shared?

Some of these significantly affect value of the plane. So you are in 50/50, partner has accident as above, and plane loses significant value. How have you all worked that out in your contracts?

 

[jtheune]

Having had a prop strike last year I can tell you how we did it. I paid the insurance deductible and the costs that the insurance did not cover ( the betterment clause ). Since it we had 1500 hours on a 2000 TBO we decided to go the overhaul route rather then the tear down route so the partnership split the costs of the overhaul upcharge.

 

[frfly172]

Would depend if it's the pilots fault,or the aircrafts. Usually the pilot pays the deductible,if it was there error.

 

[Jeff Oslick]

Would depend if it's the pilots fault,or the aircrafts. Usually the pilot pays the deductible,if it was there error.

Thankfully, haven't needed to use that clause, but yes, if pilot is negligent/in error, they pay the deductible. Our plane already has a couple of damage events in its long-ago past, so the "betterment" factor following a proper repair isn't really meaningful for us (not trying protect "NDH" factor).

 

[jtheune]

Thankfully, haven't needed to use that clause, but yes, if pilot is negligent/in error, they pay the deductible. Our plane already has a couple of damage events in its long-ago past, so the "betterment" factor following a proper repair isn't really meaningful for us (not trying protect "NDH" factor).

The betterment clause does not have to do with damage history. Unlike a car where if a part is replaced due to a accident regardless of the age of the part, in a plane where there are life limited parts they will prorate the replacement costs. As a example the mags on our engine were considered fully consumed so the cost of replacing them under either the rebuild or inspect paths was on us. I was very surprised to find out about this.