Fractional/Leaseback single-engine plane

Discussion in 'The Okie Corral' started by sushi600, Mar 7, 2004.

  1. sushi600

    sushi600 What smells?

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    Just curious if anyone has done any type of "leaseback" arrangement?

    Kinda came up in a conversation with the owner of my flight school. They're thinking (nothing is on the table yet) of picking up a new plane, with nicely equipped avionics and everything. They were thinking of doing a leaseback program with 4 other "investors." Basically the school would deduct 10-15% of the cost of rental price per hour for administrative fees/misc and I would guess a certain amount for mechanical/insurance/etc (seems a bit high, but I don't know). The remaining income would be split 5 ways among the investors.

    I know that it generally is not profitable, but possibly in a few years it will pay for itself, and I'll have a 1/5 share. The thing that piques my interest is that the plane would be used strictly for instrument training... so my guess would be less wear and tear by totally new student pilots.

    Any opinions/experiences?