On 28-Dec-2003, Paul Folbrecht wrote:

I am considering this:

1/13th share in '97 172R. GPS. 2200TT, couple hundred hours on a new
engine.

Buy-in: $3800
Dues: $150/month flat plus $38/hr wet for time.


The numbers that jump out at me are the low initial buy-in and the high
fixed monthly "dues". With 13 "shares", I would take a very close look at
scheduling policy -- how likely is the plane to be available when YOU want
to fly?

The primary advantage of a co-ownership arrangement is reducing the per-hour
component of fixed costs like hangar/tiedown, insurance, and most
maintenance. This advantage quickly diminishes as the total hours flown per
year exceeds 200 or so. A second and more obvious advantage is reduced
per-owner purchase price.

In my experience, a partnership with 3 co-owners, each flying a reasonable
75 to 100 hours/year, seems to work out very well in terms of both total
costs (competitive with renting) and availability (VASTLY better than
renting). So, you might consider the following alternative scenario:

You and two partners purchase a used 172 or similar airplane. Let's say
purchase price for a nice, well equipped plane with a relatively low-time
engine is $45,000. You each put $5,000 down, leaving a balance of $30,000.
Financed for 60 months at 7% interest, that would yield monthly payments of
just under $200 each. Fixed costs would probably add about another $100 or
so each per month. Hourly operating expenses, including $10/hr engine
reserve, would run about $33. These numbers aren't so far from the deal you
cite, but result in much better equity in the airplane and MUCH better
availability.

--
-Elliott Drucker