Aircraft Ownership

Structure

There are options a buyer should consider while evaluating aircraft ownership. Each have advantages and disadvantages* that must be carefully weighed well prior to purchase. Vector Management can help you determine what might be the best direction to proceed based on your needs. The ownership options include:

  • Whole – An entity being the only registered owner of an aircraft.
    • Pros: Availability and flexibility
    • Cons: Cost
  • Co-Ownership – Two or more entities are registered owners of an aircraft.
    • Pros: Shared cost
    • Cons: Shared schedule
    • The key to a successful co-ownership deal are two owners that can work together and feel their use will largely not conflict with each other. Due diligence and pre-planning for this type of arrangement are necessary in order to have a successful partnership.
  • Fractional – Several entities are registered owners of an aircraft.
    • Pros: Lower cost
    • Cons: Schedule availability
    • The key to a successful fractional deal are multiple owners that can work together and feel their use will largely not conflict with each other on a regular basis. They must all remain somewhat flexible with their needs. Due diligence and pre-planning for this type of arrangement are necessary in order to have a successful partnership.

*2016 NBAA Management Guide

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