March 6, 2024
The near-new vintage co-ownership deals by Partners in Aviation helped the private jet owners bypass the two-year wait from OEMs.
Partners in Aviation, which matches two owners to share one aircraft, has now matched owners for near-new vintage private jets.
The customers were able to skip the current two-year waiting list involved in ordering a new plane.
The aircraft matched by Partners in Aviation were a Bombardier Challenger 3500 and an Embraer Praetor 600.
“We have owners across the country interested in bringing on a co-owner to share their aircraft and split the cost,” said Partners in Aviation President Mark Molloy.
He continued, “The program, PIA Managed Co-Ownership, allows non-owner candidates to skip the waiting process and get into a new or used aircraft immediately. Because our clients typically fly 100 hours per year, both owners can fly all their trips – at half the cost.”
Bruce Bonafiglia, a former Challenger 350 owner based in New York, now co-owns a new Challenger 3500 after joining the Partners in Aviation program.
“The entire process with PIA couldn’t have been more satisfying from my end,” said Bonafiglia.
He added, “The program made sense based on our limited usage, and PIA introduced me to a wonderful co-owner. I’ve owned several aircraft and appreciate the value-proposition of splitting the capital and operating costs.”
Simon Elliott, a Florida resident and long-time aircraft owner, was not considering co-ownership when he ordered his 2023 Praetor 600 two years ago.
“My industry advisor introduced me to PIA and suggested their program might interest me. Initially, I was reluctant, but their legal team and structure made me comfortable with the model, and I liked the math,” said Elliot.
He added, “I could choose my pilots and manager, which was crucial to me, and the co-owner they introduced me to is a great fit. I now have the aircraft I ordered at half the original cost.”
Launched in 2016, Partners in Aviation matches co-owner candidates in the same region and provides the legal construct allowing two owners to share one aircraft securely.
The program appeals to users flying 50 to 150 hours per year who prefer ownership to membership.
Customers can enter the program as current owners looking to sell half of their plane or non-owners seeking a 50% interest in their chosen aircraft.
“It took several years for our client base to reach scale, but we now have matches flying coast-to-coast and vetted co-owner candidates ready to be matched in every region of the country,” said Molloy.
He added, “Most of our clients choose pre-owned, but we are seeing an uptick in new aircraft customers due partly to the OEMs’ two-year backlog.”
Molloy says the majority of PIA clients come from membership and jet-card programs.
“They are ready to move beyond their current membership program but aren’t flying enough to justify whole ownership. The economics of co-ownership just makes sense to them,” said Molloy.
Of course, whole or partial ownership is rarely a singular solution.
Some 55.8% of Private Jet Card Comparisons subscribers who own jets also keep jet cards and memberships, while 53.9% use ad hoc charter.
Typical reasons are missions their owned aircraft aren’t suitable for, and today, delays in maintenance, parts, pilot attrition, and training slots for pilots.
Partners in Aviation has co-ownership opportunities in every turbine category, from turboprop and light jets to mid, super mid, and heavy jets, and they work with all major OEMs.
