Your guide to aircraft partnership terminology - from buy-ins to TBO
Required yearly inspection of an aircraft by an FAA-certified mechanic. Costs typically $1,500-$3,000 depending on aircraft type.
Initial payment to join a partnership, typically your share of the aircraft's current market value. For example, a $80,000 aircraft in a 4-way partnership would require a $20,000 buy-in.
Certified Flight Instructor - a pilot certificated to teach others to fly. Having a CFI in your partnership can save significant training costs.
Aircraft with retractable landing gear, flaps, and a controllable-pitch propeller. Requires additional training and endorsement.
Hourly rate without fuel included. Partners pay separately for fuel used. Often preferred in partnerships for fair cost allocation.
Your ownership percentage in the partnership. A 1/4 share means you own 25% of the aircraft and pay 25% of fixed costs.
Monthly expenses that don't vary with flight hours: hangar, insurance, annual inspection reserves. Typically $300-$600/month per share.
Device that records engine running time, used to calculate hourly costs and track usage for billing in partnerships.
Aircraft equipped for Instrument Flight Rules operations with required avionics and current inspections (IFR certification).
Limited Liability Company structure for aircraft ownership, providing legal protection and clear ownership framework.
Regular monthly payment to cover fixed costs like hangar, insurance, and maintenance reserves. Separate from hourly rates.
Legal document defining partnership rules, costs, scheduling, maintenance responsibilities, and exit procedures.
Member responsible for coordinating maintenance, collecting dues, managing the bank account, and administrative tasks.
Thorough examination by a mechanic before purchasing an aircraft. Essential step when forming a new partnership. Costs $500-$2,000.
Tool or method for reserving aircraft time. Common systems include Flight Circle, Schedule Master, or shared calendars.
Owning an aircraft individually without partners. Highest costs but maximum flexibility and availability.
Time Before Overhaul - manufacturer-recommended hours before engine overhaul. Critical for budgeting major maintenance. Typical TBO: 1,500-2,000 hours.
Aircraft parked outside on the ramp, secured with ropes or chains. Less expensive than hangaring but exposes aircraft to weather.
Expenses that increase with flight hours: fuel, oil, engine reserves. Typically $60-$120 per flight hour depending on aircraft.
Hourly rate including fuel. Simpler billing but may not reflect actual usage accurately. Less common in partnerships.