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Benefits
  • Shared capital cost and operating expenses.
  • Shared control over operations.
  • Semi-personalized service.
  • Shared control over aircraft condition.
  • Your crew.
  • Shared availability.
  • Shared control over upgrades, downgrades, or liquidation.
  • Shared benefit from cost reduction options.

Risks
  • Not always optimum aircraft for mission.
  • Limited economy of scale.
  • Shared availability.
  • Shared benefit from cost reduction options.
  • Airline/charter when aircraft out of service.

Joint and Co-ownership, as the names imply, involves sharing the ownership or leasing of an aircraft with one or more partners.  In a joint ownership program, one of the owners provides for the management and operation of the aircraft, and the remaining owners share the overall cost based upon a mutually agreed upon formula.  On the other hand, in a co-ownership program, the owners utilize a management company, such as NIFC, to manage and operate the aircraft.  The management company charges an agreed upon fixed and (or) hourly fee plus an agreed upon formula to cover operating costs.  For multiple owners with moderate hourly use (over 100-150+ hours per year) and/or use that demands personalized reasonably assured access, joint/co-ownership is a good choice.  Integrate the use of a management company to capitalize on economy of scale and cost savings options and you have the best of both worlds.