Joint ownership is the purchase of an aircraft, like a private charter jet, by a small number of people. Typically, this transaction occurs through a partnership or limited liability corporation. By sharing ownership with someone else, each party can reap the benefits of owning a private charter jet without paying the full cost of an aircraft. Joint ownership is very similar to fractional ownership. The only difference being that joint ownership has fewer partners.
The Benefits of Joint Ownership
Joint ownership is perfect for two (or more) parties looking to purchase a personal aircraft, but can’t afford to purchase one on their own. By combining their funds, an aircraft becomes affordable. Now each party is free to use the jet during various occasions without breaking the bank.
Crossing the T’s and Dotting the I’s
Before two or more people enter into a joint partnership, legal documentation should be drafted up in advance. By having the proper paperwork in place, each partner can be sure that his or her investment remains relatively protected. Some of the items that should be covered off in the documentation include:
- Who is responsible for repairs and damages
- Which party is entitled to jet use during which days/weeks/months
- Who is responsible for insurance
- Future partner stipulations