Aircraft Co-Ownership Agreement: What You Need to Know
Co-owning an aircraft can be an excellent way to share the costs and enjoy the benefits of owning a private plane. However, like any shared ownership agreement, a clear and comprehensive agreement is crucial to avoid potential disputes and misunderstandings between co-owners.
An aircraft co-ownership agreement is a legal contract that outlines the terms and conditions of ownership, usage, maintenance, and expenses of the aircraft shared between two or more parties. This agreement is typically drafted by a lawyer and can cover various aspects of co-ownership, including:
Ownership Structure: The agreement should clearly state the ownership percentage of each party. This can affect the distribution of expenses, usage, and maintenance responsibilities.
Usage and Scheduling: The agreement should specify how the aircraft will be used and how scheduling conflicts will be resolved. This can include rules for reservations, priority given to owners based on ownership percentage, and limitations on when and where the aircraft can be used.
Expenses: The agreement should detail how expenses will be divided among co-owners. This can include fixed costs such as hangar fees, insurance, and annual maintenance, as well as variable costs such as fuel, repairs, and upgrades.
Maintenance and Inspections: The agreement should outline how maintenance and inspections will be handled. This can include regular inspections, scheduled maintenance, and dispute resolution procedures if one owner disagrees with the other on necessary repairs.
Termination: The agreement should specify how either party can terminate the co-ownership agreement. This can include a buyout provision, how the aircraft will be sold, and how the proceeds will be divided.
Creating an aircraft co-ownership agreement can be time-consuming and complex, but it is essential to ensure the co-owners are on the same page and protect their investment. It is recommended to consult with an aviation lawyer to draft a customized agreement that meets the specific needs and goals of the co-owners.
In conclusion, an aircraft co-ownership agreement is a crucial document that ensures smooth and efficient co-ownership of an aircraft. Investing the time and resources in creating a clear and comprehensive agreement can save co-owners significant financial and emotional stress down the road.
