seanmoreilly(at)hotmail.c
Guest
|
 Posted: Sun Jan 04, 2009 1:07 pm Post subject: Non-equity member operating groups in the UK |
 |
|
Hi Carl C
Thank you for your response and the copy of your group rules.
I agree that there are a number of ownership / operational / financial issues that need to be addressed when considering offering a genuine equity share in an aeroplane vs a non-equity 'participation' via a private group. The operational competence issue needs to be addressed regardless and the financial issue could be done via a security deposit to cover the insurance excess plus other unforeseen expenses that a member incurred (eg unpaid landing fees etc).
The attraction to me for non-equity membership is to mitigate the fixed costs of operation whilst trying to avoid potentially messy joint ownership issues in the future.
Do you / anyone else know if law / regulation draws a distinction between aircraft on a CAA C of A and aircraft on an LAA Permit? There seem to be a number of 'private' groups advertised in the GA media offering a non-equity stake that seem to circumvent the "Hire or Reward" issue that you highlight. I had thought that provided your group was private (ie limited to members by membership) that the hire and reward issue went away.... Maybe a bit naive!
Regards
Sean
From: carl(at)flyers.freeserve.co.uk
To: europa-list(at)matronics.com
Subject: Re: Non-equity member operating groups in the UK
Date: Sun C 4 Jan 2009 19:45:50 +0000
.ExternalClass .EC_hmmessage P {padding-right:0px;padding-left:0px;padding-bottom:0px;padding-top:0px;} .ExternalClass BODY.EC_hmmessage {font-size:10pt;font-family:Verdana;} Hi Sean C
We operate something along the lines of what you have proposed. (I have mailed you a copy of our group rules/ agreement) C however I believe that you must be a shareholder to be a legal member of a group - ie: all members must have a financial stake in the aircraft.
As far as I know there is no minimum share value specified by the CAA so we decided that £500 would ensure the insurance excess is covered in the event of an accident. My understanding is that if group members did not have a financial stake in the aircraft then the CAA would treat this arrangement as Hire & Reward which is not permitted since a fee is being charged for the use of the aircraft (ie: the operating costs - hangarage and insurance etc).
Also whilst not compulsory C I think it is desirable that group members are LAA members and also members of the particular flying club that you belong to. The insurance company will also be likely to insist that all group members have undertaken a suitable conversion course (ie the LAA training scheme). In view of the Europas tricky ground handling I would insist on this regardless (sorry C but I have assumed yours is a monowheel - it may not be).
I think allowing other pilots to fly your aircraft without any sort of financial commitment is not a great idea C though you will no doubt get many takers - IMHO that is.
I would be interested to know what others in the Europa fraternity think of such an arrangement.
Carl
[quote] ---
| | - The Matronics Europa-List Email Forum - | | | Use the List Feature Navigator to browse the many List utilities available such as the Email Subscriptions page, Archive Search & Download, 7-Day Browse, Chat, FAQ, Photoshare, and much more:
http://www.matronics.com/Navigator?Europa-List |
|
|
|
Get Email Distribution Too!
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
