if you run the numbers, air shares is not much less expensive than being one of 2 partners on a new plane. i have been partners over the last 15 years with the same person (we met through a posting at our airport) on various airplanes, from 182’s to turbo aztecs. obviously, your availability is much greater on a simple partnership. most partnerships do not make it, mostly because they have arrangements which foster spiteful behavior-this week the airplane is mine, and i am angry that when i wanted to use it one day during your week, you wouldn’t let me, so you can’t use it during my week. during our 15 years, we have had no firm useage rules, and behavior is governed by commen sense and consideration for your partner, along with flexibility. if you can do that, a simple partnership will work out better. if not, you will need airshares or ourplane to act as your referee.
The problem with most small fractionals is that the contracts are very vague in key areas - like resale. I suggest you go over each contract and make any changes you want to. I bet they will accept 90% of them to get you to sign up.
And the availability is crucial. Ask what the minimum expected availablity is and then write it into the contract with a penalty if the plane is ever not as available as promised. Again - I bet the sales guy will get you this.
In reply to:
The problem with most small fractionals is that the contracts are very vague in key areas - like resale. I suggest you go over each contract and make any changes you want to. I bet they will accept 90% of them to get you to sign up.
And the availability is crucial. Ask what the minimum expected availablity is and then write it into the contract with a penalty if the plane is ever not as available as promised. Again - I bet the sales guy will get you this.
Can’t speak for the small fractionals, but with 38 SR22/20s, 175+ Owners and 4 years of operating experience in 10 cities, the AirShares business model is pretty well developed.
The contract was originally patterned on the jet fractionals, but has been substantially fine tuned over time. It has been stable now for a couple of years and generally gets pretty positive reviews from both our Owner and his / her attorney.
Regarding availablity, we rely on having multiple aircraft in each location - 13 in Atlanta, 10 in NY etc. During startup where we might have a single aircraft in a market for a few months, we bring in a second plane when we get to three Owners (~1/3 of the first aircraft sold). Or enter the market with two planes from Day 1 as we did in NY and DC. We’ve developed a huge database of requested reservations and have reasonably sophisticated modelling capability to predict availability; in addition, we can react very rapidly to bring in a new aircraft. But, occassionally when three new Owners join the program at the same time in the same location, we need to scramble to get a new plane in place. Usually takes only a couple of weeks.
Hope the above is helpful.
I think you might be confusing some data. Here is what I have. I have 50 hours per year. The hourly wet rate for just fuel and oil is $65 at a gas rate of $1.65. Oviously that is not the current rate for gas which at Q3 will be $89 per hour. Airshares adjust this rate quarterly based on gas price. In addition to this; there is a monthly management fee that pays for insurance, engine/prop overhall, 100 hour maintenance, etc. Airshares has had several training/checkout options and they are updating that based on customer feedback. On mine; they added 10 hours at $900 (Included training kit) and I pay the normal hourly fee. You also pay an instructor fee which is differnt depending on who. If you need more hours in a year than 50; they do have a price for that also.
Just have the Airshares person go over each item with you until you understand it completely.
The sales guy called me back today and we discussed my concerns and straightened out the misperceptions. Thanks for your response.
M.E.
I noticed your tail number login id is the same as the pictures on the Airshares website. Is this the tail number for the plane you own with Airshares?
The first Airshares plane I owned was 913CD. David Lee later asked if I would move to 912CD since a buyer wanted all of 913CD. He promised to later move me to a newer plane. Then I bought a second share. I reminded David of his promise and he moved the old share to the same as the new share. So now I own two shares in 920CD.
I think it is a great reflection of your aviation enthusiasm and was thinking of doing the same. I guess I’ll have to wait until I get one (tail number) first.
In hindsight I realize that with Airshares there can be a temptation to upgrade. If I had it to do over again I would do something different form my user ID. Then again, it waa the first plane I owned. I have a model of it.
I have talked with sales people here in Florida and hope that I may ask you a couple of questions?
I have sent you a PM with my phone number. Give me a call.
How long have you owned with Airshares?
Since 2002.
What were your main concerns going in and looking back how do you view the results.
Stability of Airshares was my main initial concern. I was also worried about availability. Today the company seems stable but I still wish them well. It is a tough business. Availability has varied. Initially it was awesome. Several times I just showed up and flew. Today their operation is more streamlined so you need to call ahead. They now use FBO line staff rather than their own. At one point availability got less than thrilling. Just when I was starting to get upset out came an email from Airshares saying they felt they had an availability problem and outlining their steps to the rectify the situation. Since then availability has been better. If you plan ahead and let Marianna work her magic it generally all works out.
There are downsides. You can’t leave things in the plane or install your own special GPS mount that screws into the panel. Sometimes the avionics aren’t defaulted the way I like and I have to remember to check things like autoslew. The planes get more hours than if only one owner flew so be prepared for more interior wear. In general don’t count on just saying “Looks great lets not go home but rather head to the airport.”
On the plus side I feel I have less downtime. Last night is a good example. Sherri called a couple of days ahead. It was unusual but there wasn’t a plane for Thursday night. Marianna said to let her see what she could do. Two planes were down for maintenance in Montgomery (I think). I kidded Mac Little at lunch Thursday. We were at a luncheon to hear Alan Klapmeir speak. A few hours later Sherri called and said Marianna had found a plane. It seems 723CD would be out of maintenance in time and they would fly it back to PDK. We got there that night. Oops, no key. That was the fault of a maintenance person but Marianna drove over with a key. Preflight found a bad landing light. Yikes! Sherri called Marianna. She brought over the key to 912CD. It had also gotten out of maintenance early. So, we got off late but still flew for two hours and had a nice time other than my rotten hand flying of the ILS into PDK on the return. We came in and parked, got out, and left. They take care of everything else.
That reminds me of another nice thing. You go, the plane is pulled out and there is a cooler with water, gum and peanuts. You fly, write down any sqauwks and let Airshares handle it.
Overall I am happy. It lets me fly a plane I otherwise couldn’t afford. The Airshares people try hard and they are an honest and upfront company.
Paul
I tried to PM my contact info to you but it said you aren’t member. Shame 
Paul
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Overall I am happy. It lets me fly a plane I otherwise couldn’t afford.
Why do you think you could not afford it? From the brief looks I took at the fractional ownership plans, seemed just as expensive as owning to me.
Can you outline ballpark what you put down and monthly/hourly costs?
I purchased a 1 year, 10 month old sr20 and put half the coin down and put the rest on my home equity loan (prime - 1 for life, currently 5.75%). The benefit of putting it on the HELOC is the tax writeoff on the interest. Payment comes out to be less than $500 a month (for interest only).
I find it quite nice to have all the access to the plane and not worry about paying an hourly cost to go joy ride. Honestly, if I had to pay per hour up front, I would find reasons to justify NOT flying somewhere for a burger…
Rick
This may have an obvious answer, but what are the benefits to owning more than 1 share? A dramatic dip in cost per hour for more time than would be alotted to 1 share?
Marty
While you can buy extra hours, the cost is high. You get 75+5 hours per share. The exra 5 must be used for training or Angel Flight. One share was ok when only I flew. When Sherri decided she loved the Cirrus we got a second share. Monthly cost don’t quite double. With 2 shares we now have 150+10 hours per year. That suits our flying better. we are on the title for 25% of 920CD. Overnights go from 20 to 40 although extra overnights aren’t a big deal and have never been an issue with us.
Paul
There are several issues at play here and, as usual, your mileage may vary. First, Sherri and I fit in that 50 to 200 hours per year slot that the fractional targets. Secondly, we wanted a new plane. We also wanted a modern plane. At the time Lancair had laid everyone off and used Cirrus aircraft were virtually nonexistent. I still think it is the right approach for many even though there are now used aircraft on the market. The hourly charge is around $88 and covers gas and oil and engine reserve. It varies with fuel prices and Sherri pays the bills so I don’t recall the exact price. The past month or so has been rough relative to fuel prices so it has bounced around. The monthly covers insurance, tie downs, Garmin updates and maintenance. It runs us around $1200 each month. It is probably higher at other locations and for people newer to the program so I suggest interested parties contact Airshares and run their own financials. BTW AIrshares honors their contracts and hasn’t argues over our old contract rates. Sherri and I were each 150 hour, VFR only pilots when we started going solo in the SR22. Airshares was probably the only way we could have gotten $1M smooth coverage. I saw quotes around $10,000 per year. That was more than my monthly fee when I owned one share.
I have never said this is cheaper than a precisely crafted partnership. I will argue it is a lot less hassle. Also, when a plane is down I just take another plane. What I give up is drilling a hole for that cool special Garmin 396 mount. I can’t leave headsets in the plane. That is why I think it depends on how any given individual weights the different factors.
I paid roughly $50K at the time that I got in. That was for a 6 pack SR22 with all of the options. My alternative was a '60s vintage Piper Warrior. I find the SR22 a nicer aircraft. Today I think the cost is mid to high 60s for an SR22-GTS. I believe the monthly is also higher but covers CMAX and XM.
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I find it quite nice to have all the access to the plane and not worry about paying an hourly cost to go joy ride.
I put fuel on the Airshares Multiservice card. Assuming your plane consumes fuel, I bet your incremental cost of flying is similar if a little lower. An SR200 will be lower. Remember I fly an SR22.
Again, it sounds like you did what was right for you. Sherri and I still bounce around the idea of owning a plane ouutright. Then again, we like Airshares vs. a partnership and Sherri likes the low hassle. Actually, so do I.
Paul
Paul,
Thanks for the detailed and informative response. I’ve always wondered if u get back the 50K u paid to get in?
When the plane is sold, the proceeds are divided into eights and each share gets an eighth of the proceeds. Like buying your own plane directly, you generally suffer a depreciation loss. Also, there is an Airshares markup on the purchase price.
Paul