AIRCRAFT CO-OWNERSHIP AGREEMENT

TABLE OF CONTENTS

1. Parties
2. Aircraft Description
3. Ownership Shares and Registration
4. Purchase and Capital Contributions
5. Operating Expenses
6. Scheduling and Use
7. Maintenance and Airworthiness
8. Insurance
9. Pilot Qualifications and Operating Rules
10. Damage and Loss
11. Transfer and Sale of Interests
12. Dispute Resolution
13. Termination and Dissolution
14. General Provisions

1. PARTIES

This Aircraft Co-Ownership Agreement ("Agreement") is entered into as of [__/__/____], by and among:

CO-OWNER 1:
Name: [________________________________]
Address: [________________________________]
City, State, ZIP: [________________________________]
Pilot Certificate No.: [________________________________]
Email: [________________________________]

CO-OWNER 2:
Name: [________________________________]
Address: [________________________________]
City, State, ZIP: [________________________________]
Pilot Certificate No.: [________________________________]
Email: [________________________________]

CO-OWNER 3 (if applicable):
Name: [________________________________]
Address: [________________________________]
Pilot Certificate No.: [________________________________]
Email: [________________________________]

(collectively, "Co-Owners")

2. AIRCRAFT DESCRIPTION

Make/Model: [________________________________]
Year: [____]
Serial Number: [________________________________]
FAA Registration (N-Number): [________________________________]
Total Time Since New: [________] hours
Engine(s): [________________________________]
Avionics: [________________________________]
Home Base Airport: [________________________________] ([____])

3. OWNERSHIP SHARES AND REGISTRATION

3.1 Ownership Percentages:
| Co-Owner | Share |
|----------|-------|
| [________________________________] | [____]% |
| [________________________________] | [____]% |
| [________________________________] | [____]% |

3.2 The Aircraft shall be registered with the FAA in the names of all Co-Owners (or in the name of an LLC formed for this purpose: [________________________________]).

3.3 All Co-Owners certify U.S. citizenship or qualification for registration under 49 U.S.C. § 44102.

4. PURCHASE AND CAPITAL CONTRIBUTIONS

4.1 Aircraft Purchase Price: $[________]

4.2 Capital Contributions:
| Co-Owner | Contribution | Due Date |
|----------|-------------|----------|
| [________________________________] | $[________] | [__/__/____] |
| [________________________________] | $[________] | [__/__/____] |
| [________________________________] | $[________] | [__/__/____] |

4.3 Future capital improvements or upgrades exceeding $[________] require ☐ unanimous / ☐ majority approval of the Co-Owners.

5. OPERATING EXPENSES

5.1 Fixed Monthly Costs (divided proportionally by ownership share):
- ☐ Hangar/tie-down: $[________]/month
- ☐ Insurance: $[________]/month
- ☐ Annual inspection reserve: $[________]/month
- ☐ Engine overhaul reserve: $[________]/month
- ☐ Database/subscription updates: $[________]/month
- Total Monthly Fixed per Co-Owner: $[________] (based on [____]% share)

5.2 Variable/Hourly Costs (charged to the Co-Owner who flew):
- ☐ Fuel: actual cost per flight
- ☐ Oil: actual cost
- ☐ Hourly maintenance reserve: $[________]/Hobbs hour

5.3 Each Co-Owner shall pay monthly fixed costs by the [____] of each month. Variable costs shall be reconciled [monthly/quarterly].

5.4 A joint operating account shall be maintained at [________________________________] with a minimum balance of $[________].

6. SCHEDULING AND USE

6.1 Scheduling shall be managed through: ☐ shared online calendar ([________________________________]) / ☐ designated scheduling coordinator: [________________________________].

6.2 Priority Rules:
- Reservations are first-come, first-served
- Maximum consecutive days a single Co-Owner may reserve: [____] days
- Holiday/peak period scheduling: [________________________________]
- Minimum advance notice for reservations: [____] hours

6.3 Overnight Trips. Co-Owners may take the Aircraft on overnight trips of up to [____] days. Trips exceeding [____] days require notice to all Co-Owners.

6.4 Geographic Restrictions. The Aircraft shall not be flown:
- ☐ Outside the contiguous United States without prior approval
- ☐ Into airports with runways shorter than [________] feet
- ☐ Other restrictions: [________________________________]

6.5 Passengers. Co-Owners may carry passengers but shall not accept compensation for flights (no commercial operations under 14 CFR Part 91).

7. MAINTENANCE AND AIRWORTHINESS

7.1 Maintenance Manager. [________________________________] shall serve as Maintenance Manager, responsible for coordinating:
- ☐ Annual inspections (14 CFR § 91.409)
- ☐ Airworthiness directive compliance
- ☐ Scheduled maintenance per manufacturer recommendations
- ☐ Unscheduled maintenance and repairs

7.2 All maintenance shall be performed by FAA-certified mechanics (14 CFR Part 43) or repair stations.

7.3 Each Co-Owner shall report any mechanical discrepancy in the aircraft squawk sheet immediately after each flight.

7.4 Maintenance decisions exceeding $[________] require approval of ☐ all Co-Owners / ☐ majority of Co-Owners, except for safety-critical items.

8. INSURANCE

8.1 Co-Owners shall maintain the following insurance:
- ☐ Hull coverage: $[________] (agreed value)
- ☐ Liability coverage: $[________] per occurrence / $[________] per passenger
- ☐ All Co-Owners named as insureds

8.2 All named pilots must be approved by the insurance carrier. Each Co-Owner shall provide current pilot qualifications to the insurer annually.

8.3 Any Co-Owner whose actions result in increased premiums shall bear the additional cost.

9. PILOT QUALIFICATIONS AND OPERATING RULES

9.1 Each Co-Owner who operates the Aircraft must hold:
- ☐ Current FAA pilot certificate with appropriate category and class ratings
- ☐ Current FAA medical certificate (or BasicMed qualification)
- ☐ Current flight review (14 CFR § 61.56)
- ☐ Minimum [____] hours total time / [____] hours in type

9.2 Non-owner pilots may operate the Aircraft only with ☐ unanimous / ☐ majority Co-Owner approval and must meet the same minimum qualifications.

9.3 All operations shall comply with 14 CFR Part 91 and applicable NOTAMs, TFRs, and ATC instructions.

10. DAMAGE AND LOSS

10.1 If the Aircraft is damaged during a Co-Owner's use and the damage is covered by insurance, the deductible shall be paid by: ☐ the Co-Owner operating at the time / ☐ shared proportionally.

10.2 Damage not covered by insurance due to a Co-Owner's violation of this Agreement or FAA regulations shall be the sole responsibility of that Co-Owner.

10.3 Total Loss. In the event of a total loss, insurance proceeds shall be distributed according to ownership percentages after satisfaction of any liens.

11. TRANSFER AND SALE OF INTERESTS

11.1 Right of First Refusal. A Co-Owner wishing to sell their interest must first offer it to the remaining Co-Owners at the proposed sale price. Remaining Co-Owners have [____] days to exercise this right.

11.2 Buyer Qualifications. Any new co-owner must:
- ☐ Meet pilot qualification requirements
- ☐ Be approved by remaining Co-Owners (approval not to be unreasonably withheld)
- ☐ Be insurable under the existing policy
- ☐ Execute this Agreement

11.3 FAA registration shall be updated within [____] days of any ownership transfer.

12. DISPUTE RESOLUTION

12.1 Disputes shall first be addressed through good-faith discussion among Co-Owners.

12.2 If unresolved within [____] days, disputes shall be submitted to ☐ mediation / ☐ binding arbitration in [________________________________].

12.3 The prevailing party shall be entitled to reasonable attorneys' fees.

13. TERMINATION AND DISSOLUTION

13.1 This Agreement may be terminated by:
- ☐ Unanimous agreement to sell the Aircraft
- ☐ Any Co-Owner's written request to dissolve, triggering the buyout provisions in Section 11
- ☐ Default by a Co-Owner (failure to pay obligations for [____] consecutive months)

13.2 Upon dissolution, the Aircraft shall be sold and net proceeds distributed according to ownership percentages, after deducting outstanding obligations.

14. GENERAL PROVISIONS

14.1 Governing Law. This Agreement is governed by federal aviation law and the laws of the State of [________________________________].

14.2 Entire Agreement. This is the complete agreement among the Co-Owners.

14.3 Amendments. Changes require written agreement signed by all Co-Owners.

14.4 Severability. Invalid provisions do not affect remaining terms.

14.5 Notices. Written notices shall be sent to the addresses listed above.

SIGNATURES

CO-OWNER 1
Signature: [________________________________]
Printed Name: [________________________________]
Date: [__/__/____]

CO-OWNER 2
Signature: [________________________________]
Printed Name: [________________________________]
Date: [__/__/____]

CO-OWNER 3 (if applicable)
Signature: [________________________________]
Printed Name: [________________________________]
Date: [__/__/____]

SOURCES AND REFERENCES

• 14 CFR Part 47 (Aircraft Registration)
• 14 CFR Part 91 (General Operating and Flight Rules)
• 14 CFR Part 43 (Maintenance, Preventive Maintenance, Rebuilding, and Alteration)
• 49 U.S.C. § 44101 et seq. (Aircraft Registration)
• AOPA Aircraft Co-Ownership Guide
• IRS Publication 946 (How to Depreciate Property)