The goal of this partnership is to share ownership costs while maintaining an aircraft in top-notch condition. Ideally the partners will continue to invest into upgrades such as avionics and performance mods. This will be a 1/2 or 1/3 partner arrangement. Each partner will be purchasing a share of an LLC corporation that owns and operates the aircraft.
The aircraft will be based at JZP Jasper, GA which has several advantages. This airport is just outside the Atlanta metro area, which avoid most of the heavy traffic. Rarely would you have an IFR clearance delay. The fuel costs at JZP are among the lowest in the Atlanta area. And importantly, there is a mechanic shop at JZP that we have a good relationship with.
Costs
Costs are estimates only. Actual cost will depend on operating agreement between partners. The goal is to maintain costs in the range of:
- Low $300’s per month fixed cost for 1/3 partner or low 400’s per month for 1/2 partner.
- $30 – $40 dry rate.
This equates to an “all-in” wet rate (equivalent to rental rate) in the low $200’s / hr. range, assuming 50 hours per year per pilot (based on current JZP fuel prices).
Insurance costs are based on the lowest time and least hours per year pilot. Whoever flies the least costs the most. Therefore, a minimum flight hours commitment is required.
Cost per hour vs. cost per distance
This aircraft flies at 155 – 165 knots TAS. (depending on power setting). The cost compared to other aircraft is very affordable. For example, C182, a PA-28-200R Arrow, 235 Dakota flies in the 135 knot range. This Lance is about 20% faster, meaning less engine time for the trip. Add in the fact that you can easily fly with 4 full-sized adults or family of 5 while bringing Rover along for the ride, the cost per seat is typically less than flying commercial.
Equipment and accessories
Available for inclusion into the partnership agreement:
- Battery powered tug, less than a year old (was $2700 new)
- Custom aircraft cover, cowl plugs, tail cover, window sun blockers
- Tool boxes, tools
- Hanger contract (hangers are very hard to find these days)
Share Purchase Price
Each partner will be purchasing a share of an LLC corporation that owns the aircraft. The purchase price depends on the size of the share and the current market value. See prices for PA-32R 1976 and 1977 models for comparison.
Generally, a share price is a fraction of the aircraft, plus initial contributing into a maintenance fund. The maintenance fund is an asset owned by the LLC. This fund accumulates over time and is eventually used for engine overhaul or other maintenance.
Lances for sale on Trade-A-Plane
Operation
Fueling
The useful fuel capacity for a 1977 Lance is 94 gallons.
Fueling at JZP is self serve. This is an opportunity to operate the aircraft at a pre-designated fuel level, other than full. There is rarely a need to run this aircraft with full tanks unless you are going more than 500 NM. Doing so means you carry more weight, which degrades performance. 68 gallons of fuel to covers 500 NM trips including 45 minute reserves at “performance power” settings.
Parking
The aircraft will be kept in a hanger. There is a battery powered tug included with the partnership.
Scheduling
It is important that the partners agree on a system of scheduling that helps to avoid conflicts. This type of aircraft is typically used for taking for multiple days. There are various systems of being fair and courteous to your fellow owners.
The method for scheduling will be negotiated by the initial partners.
Storage
The hanger is large enough to accommodate a modest amount of storage items. These items should be aviation related and be small enough to not interfere with easily walking around the aircraft. Ideally, each partner would have their own storage cabinet for things like headsets and supplies.
Financing
Is is forbidden in the partnership agreement to use any asset of the LLC as collateral for a loan. However, current partners may elect to finance a portion of the purchase price for well qualified pilots who are a good fit.