Partners in Aviation’s Innovative Managed Co-Ownership Approach

Originally Published in SherpaReport on February 26, 2025 | Written by: Nick Copley

The idea of sharing aircraft goes back to Orville and Wilbur Wright’s partnership. While the industry has offered many sharing options in the past, Partners in Aviation provides a unique sharing solution that addresses the needs of an important market segment.

As the name suggests, Partners in Aviation brings together two individuals or organizations interested in co-owning an aircraft. Their solution works best for those flying between 50 and 150 hours per year, a longstanding “doughnut hole” that PIA fills for a growing list of clients.

Partners in Aviation Solves a Common Problem

Consider the aircraft needs of two potential Partners in Aviation (PIA) clients. One partner with sole ownership of an aircraft has seen its usage drop below 150 hours per year, making it hard to justify ownership financially. They have too much aircraft but still want the convenience and security of ownership.

A second potential partner is in a jet card or membership program but has begun to fly more than 50 hours per year, so they’re paying high rates for an increasing number of flights. They want to reduce their costs while gaining control, convenience, and consistency in their aircraft and crew.

The challenge that these two potential partners face is not new. The industry has seen a long line of attempted solutions, but few have addressed the issue head-on. PIA’s innovative co-ownership program brings partners together to own equal shares of an aircraft, effectively cutting ownership costs in half. Despite the attractiveness of those numbers, it’s not enough for PIA’s sophisticated client base. As Partners in Aviation President Mark Molloy notes, “We are matching multi-million-dollar aircraft and perfect strangers, so how do you do that successfully? PIA does so by addressing the four pitfalls that limited the success of partnerships in the past, specifically how the partners share the aircraft, structure the legal entity, exit the partnership, and protect themselves from risk.”

Sharing the Aircraft

Like the potential partners mentioned earlier, PIA clients typically fly once or twice per month for three to five total flight days. The co-ownership agreement gives each partner nominal control of the aircraft every other week. Although they have the right to use the jet during those weeks, they are incentivized to share it when not using it. With partners freely sharing the aircraft, each partner has 25+ days of effective availability per month while paying half the price of sole ownership.

Of course, a partnership requires a partner. PIA’s recognized industry position and network of contacts enable it to play matchmaker by introducing potential partners. Partners are typically located near one another, so both have easy access to the aircraft while minimizing repositioning time and costs.

PIA’s Co-Ownership Structure

While PIA’s matchmaking skills bring partners together, its partnership agreement makes the relationship work. PIA developed it in cooperation with top aviation industry lawyers. The agreement takes a co-ownership or “tenancy in common” approach, much like fractional programs, so it prevents specific problems inherent to legal partnerships. With the partners’ legal separation, the co-ownership model allows each partner to handle the tax and legal issues of aircraft ownership as best fits their needs while avoiding entanglements with their partner.

PIA’s base partnership lasts three years and tightly defines the process for partners to exit early or extend the three-year relationship. Of course, a partner who exits early may not receive the full fair-market value of their ownership interest. PIA advises potential partners to make the three-year commitment only if they are fully confident in this decision.

Another core element of the partnership structure is the legal protection afforded each partner. Not all partnerships end as happily as they began. One partner can encounter headwinds while the other’s business enjoys smooth sailing, so the legal framework properly isolates each partner from the other’s potential liabilities.

PIA’s partnership plan is well-thought-out and covers nearly 50 items, yet every potential partner enters the conversation with questions. PIA meets that head-on by engaging both partners’ legal and financial teams early in the negotiations, so everyone understands the agreements and potential issues. As Molloy points out, PIA has a sophisticated client base: “The people that show interest in our program are educated, have been around the block, and have strong legal counsel. When we work through how the program works, a high percentage say, ‘This is a good fit for me.'”

Managing the Aircraft and Crew

The partners choose a third party to manage and maintain the aircraft and crew. A third-party manager also handles the request and approval process when one partner needs the aircraft during the other partner’s designated time, ensuring that transactions flow smoothly.

Depending on their combined usage, co-owners may charter the aircraft to limit deadhead flights or generate revenue that reduces their cost burden. However, these opportunities are limited by available crew hours because the partners want a consistent, fresh crew as part of their package.

Range of Aircraft

When PIA began in 2016, most of its partnerships involved light jets. However, partners leaving jet card and membership programs who had enjoyed access to larger-cabin aircraft frequently looked for the same types of jets, so light, midsize, and super-midsize partnerships became common. While PIA has structured partnerships involving aircraft ranging from turboprops to heavy jets, the light, midsize, and super-midsize jets represent the bulk of its business. PIA works with many brokers, aircraft manufacturers, and others in the industry.

Geographic Coverage

The desire to share aircraft is not new. The challenge has been to structure relationships that offer clear financial benefits while addressing logistical issues and protecting the partners from unwanted risks. With legal and financial issues being central to effective partnerships, PIA currently develops partnerships in only the United States and Canada, though the aircraft travel elsewhere.

Partners in Aviation fills a unique niche in the industry by bringing together individuals and companies with shared needs while structuring their relationships around a solid partnership agreement. It’s an interesting product sitting between fractional aircraft ownership and whole aircraft ownerhip.