E1 Aircraft Share – Buy Shared Ownership Contract

This agreement is suitable for use where all of the proposed sharers own a share in the aircraft, or are planning to each own a share in the aircraft. To achieve this, the potential sharers could purchase an aircraft together, or they could buy shares in an aircraft already owned by one of the sharers. This agreement cannot cater for the aircraft to be shared with any members who are not to be owners of the boat, since under aircraft legislation this could jeopardise the aircraft’s classification as a private aircraft. For the same reason under this agreement there can be no more than 20 sharers, and each of the sharers must own at least 5% of the aircraft.

This agreement is very comprehensive and, amongst other issues, deals with the following:

• The ownership of the aircraft and any accessories or equipment related to or found on the aircraft
• Management of the aircraft and decision-making
• Costs splitting procedures
• Reservation procedures for the use of the aircraft
• The allocation of liability between the sharers in the event of damage or accidents
• Prohibitions and requirements regarding the use of the aircraft
• Procedures for admitting new sharers, and for terminating the agreement, including how to sell a share in the aircraft

We recognise that the arrangements for issues such as reservations, cost splitting and use prohibitions on use will need to be different for each aircraft share club depending on the individual circumstances. To allow for such flexibility many parts of the agreement can easily be personalised to meet the needs of a particular sharing group. For example, the agreement provides for all of the running costs of the aircraft to be split between the sharers. The default position is that the various running costs are split between the owners in proportion with their share in the ownership of the Aircraft, except for fuel which is paid for by each sharer depending on how much they have used. It is possible to alter the agreement if required so that costs are divided between the sharers in a different manner.

The agreement comes with extensive Drafting and Guidance Notes which fully explain the operation of the agreement and contain example additional or replacement clauses which may be used to personalise the agreement. The Drafting and Guidance Notes also contain practical tips and useful documents for use within the aircraft share scheme.

For further information about aircraft sharing please see the Aircraft Sharing Factsheet, and the aircraft sharing page of SharingContracts.com