What is Shared Ownership?
Shared Ownership Cost Components:
Purchase an Ownership Position in an Aircraft (one time purchase).
Annual and Maintenance Fees (assessed annually).
bop Aero Management Fee (assessed monthly).
Operational Costs (per trip).
Pilot Costs (per trip, non-pilot owners only).
Shared Ownership Explained:
Purchase at least the minimum ownership position (based on maximum planned annual hours) in an aircraft up to the maximum available for purchase*. (planned maximum annual hours may vary per aircraft). Total equity owned determines allowable usage per year.
* Each aircraft will be a single asset LLC. Ownership is divided into units. Each unit will correspond to the maximum planned annual hour aircraft usage. For example, if there are 1,500 planned annual hours for the aircraft, then 1,500 units will be available for purchase.
There are certain fixed costs inherent to aircraft ownership that all owners will share equally based on their ownership stake. For example, those fees can include (but are not limited to): Storage, Insurance, Legal, required Flight Data subscriptions, Aircraft Maintenance, etc.
bop Aero will charge an annual management fee to manage all of the details related to the aircraft fixed costs, the logistics of arranging the aircraft availability for each owner, and managing each owner’s aircraft usage allotment based on their aircraft equity position. Please see the bop Aero Management Services page for more details.
Operationally, there are costs/fees associated with operating the aircraft itself, similar to operating any vehicle, aircraft are no different. Examples include fuel, oil, FBO fees (if applicable), etc. These costs/fees are paid directly by each owner to the applicable vendor.
Each owner is required to contract their own pilot for every trip (if the owner is not a certified private pilot). Or fly the trip personally (owner-pilot). Federal Aviation Regulations restrict us (or any similar company) from providing a pilot or doing individual flight planning for our owners. Owners and/or their pilots must do that. It’s known as ‘Operational Control’ (which we’d be happy to explain to you one-on-one) and each owner must maintain it themselves when operating the aircraft. However, the regulations do not restrict us from providing recommendations or referrals. bop Aero maintains a referral list with a group of pilots that meet our personal standards for experience and proficiency that exceeds FAA requirements. Please see the bop Aero Pilot Referral Program for more details.