Quantcast

Aircraft co-ownership offers flexibility in reducing costs amid economic challenges

United Airlines doubles down on Chicago roots with new O'Hare billboards
Gatwick airport strikes, Easter 2025: will my flight be cancelled?
Boarding passes and check-in could be scrapped in air travel shake-up
European air traffic warning means summer delays for holidaymakers
The EU rule change that could affect millions of Brits when their flight is delayed or cancelled
Delta Earnings Land Soon. Why They’re Key for Airline Stocks and the Economy.
Avelo Airlines to Operate Deportation Flights, Hiring Flight Attendants
Travel chaos 2025: all the strikes and disruption expected across Europe
Qatar Airways accelerates Starlink wifi implementation
Southwest Airlines extends flight schedule through early April 2025
Cathay Pacific reaches 3,400 pilots this year, with low resignation rate of 2.9%
United receives FAA approval for first Starlink-equipped planes
Qantas launches mammoth Asia flight sale including Bali and Japan
New Update from Air Canada, WestJet, American Airlines, Delta, United, Southwest, Alaska, JetBlue Airways, and Sunwing: Airline Capacity Between Canada and US Slashed as Bookings Plummet Seventy Per Cent
Delta Cuts Two Domestic Routes
United Airlines Technicians Reject ‘Dead on Arrival’ Contract Proposal, Teamsters Say
The State of the Asia Pacific Airline Industry
Spirit Airlines to add Detroit nonstop flight out of Bradley International Airport
Major airline to launch new direct flights from Scotland to North America
Ryanair launches new ‘prime’ membership which saves passengers more than £400 a year
Judge Orders Boeing to Trial on 737 MAX Case
Qantas’ free international Wi-Fi to switch on from next week
The real reason Southwest is charging for bags now
Air France-KLM in ongoing talks with Air Europa on potential stake, CEO says
Frontier Savagely Shades Southwest After They Eliminated Longstanding Free Bag Policy, Sparking Backlash
Frontier Wants You to 'Divorce Your Old Airline' After Southwest Changes
Delta named one of Fast Company's Most Innovative Companies for sustainability initiatives
Passengers escape fiery American Airlines jet in Denver
Delta, American Dive On Slashed Outlooks; But Two Airlines Rally
Competitors are circling Southwest after the airline announced it's going to start charging for checked bags
Aircraft co-ownership offers flexibility in reducing costs amid economic challenges
Policy
Webp 4icawwvtg7mupp051grumj0ndq6y
JSX Aircraft | Official Website

Owners and potential aircraft buyers are increasingly interested in sharing ownership of an aircraft with at least one other person. This approach allows them to free up capital, reduce ownership costs, and share the risk of depreciation.

Before embarking on shared ownership, parties should agree on a suitable aircraft that meets their needs and ensure mutual trust. They must also model the economics individually and collectively to avoid surprises regarding the true cost of ownership.

Key issues such as tax planning and liability limitation should be addressed early, often by forming a limited liability company (LLC). Compliance with Federal Aviation Regulations (FARs) is essential, including confirming adequate insurance coverage.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

There are two basic arrangements for multiple-owner deals: co-ownership and joint ownership. Co-ownership involves buying and sharing responsibility for an aircraft, usually through an LLC. However, this structure cannot operate the aircraft without violating FAR rules unless it obtains specific certifications.

Joint ownership provides a limited exception under FAR Part 91, allowing one owner to provide crew services to others. This arrangement requires registering undivided interests with the FAA and entering into agreements specifying cost-sharing details.

Written agreements are crucial in both co-ownership and joint ownership structures to govern relationships and terms of sharing. These agreements cover budgeting, scheduling, management, leasing options, cost allocation, indemnification, sales processes, and conflict resolution.

David G. Mayer notes that while these structures can be complex due to regulatory requirements, they offer benefits like reduced costs and separate tax planning opportunities. In today's economic climate, shared ownership may appeal to new or experienced owners who might not pursue full ownership alone.

The information provided by Mayer is not legal advice but reflects his personal analysis as part of AIN Media Group's blog content.

Organizations Included in this History
More News

Various airlines around the world often assign Flight Number 1 to important or historical routes.

Apr 29, 2025

Eurowings, a subsidiary of the Lufthansa Group, reported notable performance metrics in the first quarter of 2025, suggesting heightened customer satisfaction.

Apr 29, 2025

Attending Carnival in Rio de Janeiro had been a long-standing aspiration for Matt Moffitt, who recently managed to visit during his three-month trip through South America.

Apr 29, 2025

Adding an authorized user to a credit card account offers potential benefits but also comes with risks.

Apr 29, 2025

Ahead of Memorial Day, Delta has unveiled its annual list of the most-searched international summer destinations, using data from Delta.com and the Fly Delta App.

Apr 29, 2025

FedEx Corp. released its 2025 FedEx Small Business Trade Index, offering insights on how U.S. small- and medium-sized business (SMB) leaders view global trade.

Apr 29, 2025