GROUP OWNERSHIP OF AIRCRAFT
Introducing our Aviation Law Services
In recognition of his expertise, Ian Gee is recommended in the Legal 500 for his aviation practice.
Why is a formal agreement important when buying or owning aircraft as a group?
Aircraft can be expensive to buy and maintain, so it can make sense to spread the costs between a group of people.
Some group ownerships operate on an informal basis, but there are many examples of these type of arrangements ending in damaging and costly disputes that may have been avoided through the drawing up of a formal agreement.
These disputes can be avoided by employing an experienced Aviation Solicitor to draw up a comprehensive formal agreement for all members of the group to sign, adhere to and to bind new members.
What do I need to consider when entering into group ownership?
Before entering into group ownership of aircraft, there are a number of decisions that you need to make and options to consider.
We have listed some things you will need to take into consideration below, but for expert advice and guidance contact JWK Solicitors.
- No member of the group can be a limited company in their own right. However the group will need to decide whether to operate as a limited company, a limited liability partnership or something else and then decide how many shares they want to issue and the procedure for voting decisions must be established.
- Each member must not hold less than a five percent share.
- At which airport will the aircraft be based?
- What are the minimum requirements for prior flying experience of members and currency?
- What level of insurance is required?
- Who will authorise repair and maintenance costs? How are decisions to be made?
- How are decisions to be made about upgrades to the aircraft?
- You will need to establish a booking system to make sure everybody has their fair share of flying time.
- Setting of rates for flying charges.
- Delegation of responsibilities for bookings, financial dealings, cheque signing, arranging engineering, etc.
- What if a group member wants to move on? Will the others have first refusal?
- What rules will be put in place if a member of the group defaults on payment?
- What procedures will you put in place to resolve disputes?
JWK can help you. Get in touch today
- Commercial Property
- Intellectual Property
- Agriculture & Rural Matters
- Dispute Resolution
- Local Authority Licensing
Clare started work at JWK Solicitors in 2004, after completing her LLB at Oxford Brookes University and her LPC at Nottingham Law School. She works within the Commercial... Read more
After gaining an honours degree in Business Law, Ian Gee joined Jobling & Knape and qualified in 1979. Jobling & Knape was established by his grandfather John... Read more
'Giveaway budget' but no rise in inheritance tax allowances