© 1998 By Michael P. Fleming

Sharing corporate aircraft has never been more popular. Aircraft that in the 1980s might have been seen as expensive perquisites today are often subject to rigorous financial justification. To meet today’s tougher standards, many operators turn to aircraft sharing during otherwise idle periods. This trend has contributed to record industry activity levels.

Anyone involved in the business (manufacturers, brokers, management companies, charter companies, flight departments, pilots, insurers, accountants, attorneys, and consultants) is likely to be exposed to some form of sharing arrangement. Because the issues are complex (even mind-boggling to the uninitiated) and the stakes high, I will summarize the various sharing structures and their applicability in particular planning environments. This should provide an analytical framework for determining the best sharing mechanism, while avoiding the numerous and often obscure pitfalls that lie in wait for the unsuspecting.

First, because the relevant considerations can vary by user type, Table 1 contains several categories of business aircraft users, in order of diminishing level of industry involvement.

Anyone involved in the business (manufacturers, brokers, management companies, charter companies, flight departments, pilots, insurers, accountants, attorneys, and consultants) is likely to be exposed to some form of sharing arrangement. Because the issues are complex (even mind-boggling to the uninitiated) and the stakes high, I will summarize the various sharing structures and their applicability in particular planning environments. This should provide an analytical framework for determining the best sharing mechanism, while avoiding the numerous and often obscure pitfalls that lie in wait for the unsuspecting.

First, because the relevant considerations can vary by user type, Table 1 contains several categories of business aircraft users, in order of diminishing level of industry involvement.