Motivations for partnering with one to four similar users in jet ownership can vary from controlling initial and ongoing ownership costs, to sharing risk, or making use of current or predicted aircraft and crew downtime, without placement in a charter program.
If you typically fly trips of only one to three days, or only fly a few times per month, but desire to own an aircraft, partnership might provide the best value. Speaking with an aviation manager about your utilization schedule, trip requirements, and ownership goals will help determine the aircraft type and ownership structure best suiting your needs, or, determine if you and your existing aircraft are positioned to take on partners.
Identifying The Parnership
Alante matches individuals with similar travel needs through a discovery and analysis process that includes a review of past and predicted trip patterns, ownership mindset, and financial goals, then coordinates purchase of an ‘undivided interest’ in the specific new or used aircraft that meets the collective goals of the partnership’s members. Unlike a fractional ownership program, however, we limit the number of partners on an aircraft to only what that aircraft and its partnership’s schedules will allow. This ensures you come to know the other owners in your partnership, so that you are comfortable sharing the resource for years to come.
Acquisition & Enrollment
Once the aircraft type is determined through analysis of the ownership group’s requirements, one to three acquisition targets are identified and presented to the group for final selection. By equally dividing the acquisition and subsequent fixed operating costs, ownership becomes significantly more efficient than most other options, including fractional ownership, and many jet cards.
Structurally, the partnership typically takes on the form of an LLC managed by Alante, with its ownership distributed corresponding to equity in the aircraft. This allows your assigned aircraft manager to make recommendations, and to enact decisions made by the partnership on ownership issues. Operationally, your jet will fly under “Part-91” rules, unless access a charter revenue program is desired. Regardless, it will be managed and operated parallel to Alante’s charter fleet, benefiting from all of the same oversight and economies of scale.
Each month you will receive a statement detailing the fixed costs accrued, any utilization costs, and the status of maintenance and operating reserves. Further, ownership conference calls are periodically coordinated, so that each member has an active say in key ownership decisions involving ongoing maintenance and operations.
Alante’s goal is to ensure that your experience traveling in your shared jet is no different than if you were to own it alone. In many cases, we are able to assign the same crew to each of your trips so that you and your family are always greeted by a familiar face, who knows your preferences, and your flow.
This begins with a call to our 24/7 flight operations office, where a member of our team will determine your prefered times, airports, and preferences for ground services like rental vehicles and hotels. Prior to your flight, our flight operations team will work with your crew will ensure the aircraft is at the ready, and will ensure items like catering are as-desired. This cooperation extends to unforeseen events like mechanical or weather delays, where contingencies such as alternate aircraft or airports are quickly mobilized.
Primary to the success of an aircraft partnership is the balanced management of its schedule, ensuring it remains in-line with the group’s expectations for availability and flexibility.
This requires that only partners with generally compatible schedules are brought together at the outset. Trips are then booked up to three months in advance, and any conflicts typically resolved through minor changes to departure times, aircraft repositioning, or supplementation though our charter fleet. With only one to four other partners, and a combined utilization of between 400 and 600 hours per year, this format typically ensures each partner has reasonable and consistent access to their aircraft throughout the year.
All great partnerships must come to an end. While some partners may wish to renegotiate a new agreement, all Alante aircraft partnerships are written to expire within a timespan of three to five years. As this time nears, the aircraft is prepared for sale, and upon transfer of title, the partnership and it’s managing LLC dissolves. Each partner then receives proceeds of this sale equivalent to their equity, minus any outstanding costs, and a brokerage fee of five percent.