Individual ownership is the “default” way most people think they want to own their planes. It fulfills a dream and often is a “crowing accomplishment”. It offers the greatest flexibility of usage and is the highest cost of ownership choice. For our clients that can justify the investment we whole-heartedly encourage the fulfillment of the dream and support their selection to opt for this method.
However, choosing this method can lead buyers to buy older aircraft simply to fit a cash purchase budget target and this can be a choice filled with compromise -- leading to lower utilization, which leads to a less than ideal long term experience.
The truth is that many clients that want to own their planes "all by themselves” would likely be better candidates for one of our other options. In short, planes like to fly. And modern aircraft like to fly more than most private pilots use their planes.
Our other options can provide leverage of the usage potential and economic sharing or income from the resource. Tax considerations are key to consider in each case as well as they can make a huge difference.
We often have clients ask, “What can I buy with XXX dollars?” and we respond by explaining that with a single budget number we can usually create at least 4 other possible aircraft options: all of which result in a newer aircraft and better ownership economics.
So if you’ve always dreamed of having “your own” plane and you can justify what it takes to own a fine modern aircraft, then we encourage you to do that as it's the greatest thing in the world. It rewards you for the hard work while giving back precious time and flexibility to make the most of your life. It will be a highlight of your life and a forever accomplishment.
We encourage you to go for it and will help you achieve that goal in the most appropriate and economical way. We look forward to helping you make that dream come true.
Partnerships represent a potentially good way for some owners to shift the economics of their investment just enough to make it fit their financial goals. It sustains the potential to attain a nicer aircraft for less investment and reduces fixed cost via a shared approach.
The challenges with partnerships are formation, entry and exit. They are harder to setup, maintain, and get out of and they typically do not have the same tax potentials in all instances as other ownership forms.
LifeStyle Aviation offers a unique turn-key partnership formation service that includes match making and more importantly coaching through all the formation, implementation, acquisition, delivery, training and support phases. The program is successful and the company regularly helps form these arrangements though it is much more labor intensive than some of our other approaches.
Partnerships are definitely a viable option under the “right” circumstances but not everyone is a good fit for a partnership and not every situation is best solved by this approach. We encourage you to discuss your needs and goals with one of our specialists and learn more about our partnership program that provides turn-key support for partnership formation and aircraft acquisition.
If you are looking for aircraft ownership with an “angle” to transform the economics and offer unique tax advantages, then Aircraft Leasebacks might be what you are looking for. Aircraft leasebacks are a unique and powerful way for a pilot that wants to maximize their leverage, minimize cost of ownership and even potentially profit from their aircraft ownership.
We explain that its not for everyone right upfront because it is different than the other options. In this approach we assist our buyers to establish a business entity that is in the business of leasing their aircraft to our local flight center partner for their rental and training fleet.
The owner typically does not pay for the usage of their own plane and receives income from the usage by others. There are tax advantages to leaseback that are unique to this approach that can be quite compelling depending on the buyer’s situation.
Leaseback is the only option that can create a “tax angle” for people that are employed as regular W2 employees and don’t own their own businesses. This options works well for buyers that are early stage, are wanting to get “all their ratings” and will be renting a lot.
In addition to income instead of expense for the aircraft, it gives them a connection to the flight center as a “partner” and provides them a great environment to be supported and encouraged throughout their development.
This option is unique and no other option offers what it does. Leasebacks may or may not be for you but will be happy to review its potential and availability in your local area and help you review the economics and practicality of this approach for goals.
DiamondShare™ was inspired and created to provide all pilots an affordable option to have ownership or access to an amazing new modern aircraft so they can achieve their dreams and goals.
Our Secret is Sharing. The idea is simple and the implementation is brilliant. By pooling your interest via the DiamondShare™ Share & Save program with up to three other parties you can dramatically reduce your total cost of ownership while enhancing your overall aircraft ownership experience.
DiamondShare Ownership provides a truly unique set of ownership economics. It is not designed as a business or profit center like a leaseback arrangement but a special sharing arrangement that has one owner instead of multiple equity owners. Our DiamondShare owners like that the airplane is theirs and they have control.
Through the DiamondShare program they offer access to an exclusive group of selected pilots. The approach provides excellent access and usage flexibility for all parties, while keeping the plane flying more than just the single owner approach which keeps the plane “happy”.
Additionally, in some cases DiamondShare Ownership has the ability to provide a powerful and unique tax advantage for those that own their own businesses but might not be able to use the aircraft the requisite 50% for business use.
We encourage all buyer candidates of an aircraft to consider this program to see the economics before they make their final selection as it's not likely an approach they have considered before. DiamondShare program aircraft come included with many extras and items our owners appreciate and that make the economics even more compelling.
DiamondShare Membership is not “ownership” but provides the potential for an “owner-like experience”. Our DiamondShare Members commit to annual lease agreements paying fixed monthly payments to have access to a lovely modern aircraft. They have flexible usage access and simply pay their own fuel. Insurance specially designed for DiamondShare is included for each member in their lease fees. The beauty of the program is the low upfront amount to start, the low monthly budget and the flexible access to a beautiful modern aircraft. The program is targeted to “metro” areas where there is sufficient population and may not be available in your area. If you feel your area would be well serviced and you would like to be a member you will be encouraged to let us know and we maintain our membership waiting list. We encourage you to help by introducing our team to pilots that might be considering an aircraft purchase so the DiamondShare Ownership option can be presented to them.