A "Group Syndicate" means the ALW SP-2000 aircraft is owned by a group of two or more pilots.
There are as many ways of achieving this as there are colours in the rainbow but in general, lets say, your aircraft is owned by four or more pilots.
This means four people have use of the aircraft. The purchase price of the aircraft is accordingly reduced to a quarter, likewise the costs of insurance and maintenance.
Does the idea of syndicate ownership suit you?
The aircraft price and maintenance is shared amongst members. Rent your aircraft out to aero clubs and make money and get yourself into the sky!
Your syndication could be a group of three or four people who purchase your SPEED aircraft and then rent the aircraft out at $50 per hour. Thereby paying off the aircraft and putting money into the kitty for maintenance OR rent your aircraft back to local aero clubs and make a profit on your aircraft.
Most people these days are too busy for all the cleaning, servicing and managing that a Light Sport Aircraft requires.
That is why flying syndicate members enjoy sharing the advantages and responsibilities of being part of a flying syndicate.
Choosing the right structure for your syndicate is an important decision and will influence the way in which the syndicate operates in years to come.
There are two main types of syndicate structure to choose from:
Option 1 – A Partnership.
A partnership allows each member to buy shares in an Australian LightWing aircraft and then use that asset proportionate to their share value. This is very often the simplest route and is common if the share costs are relatively low.
Option 2 – A Company.
The second option is to set up a company. The way in which a syndicate operates under a company will not differ much to that of a partnership, however, the main difference with a company is when you pay for your share, you are not buying a share in the asset but a share in the company, which will own the asset.
If the idea of flying your own Light Sport Aircraft in a flying syndicate contact us right NOW!
"It (syndication) works by allowing each owner to pay for their share of the aircraft, and associated upkeep. Ideally these owners have a common home airport and perthaps even similar favourite destinations. The aircraft is then available in equal share to each of the individuals, or business entities as they may be. Time share is allocated in flying hours, where a large fractional group might have a share cut 16 ways, equating to around 50 flying hours over the course of the contract. If, at any time, an owner wants to leave the agreement, the provider agrees to buy them out of their share at a fair market value. Though there is usually a minimum commitment that must be paid before exiting the agreement"
"Only let people into the syndicate that you feel comfortable with (You are trusting them with your aeroplane.)
Keep the aircraft properly maintained; there'll be less chance of recrimination later if something breaks. It's a good idea to have one of the syndicate responsible for coordinating (thought not necessarily doing all the maintenance).
Keep a simple record sheet with the aeroplane where people can note flights, work done, faults found etc. That makes it easier to keep maintenance on schedule, the aircraft log book up to date, and to charge members appropriately for their flying.
We find it very efficient to hold the formal AGM standing outside the hangar, in winter, and only retiring to the pub afterwards.
For More information on starting your own Syndication, Please Call Howie
on (02) 6686 8658, or email us.