Partners in Aviation (PIA) specializes in matching pairs of business jet co-owners, either new owners looking to acquire a shared aircraft or existing owners looking to share the operating costs of their airplane. Company president Mark Molloy told AIN that in the second half of 2023, the market is recovering to a more balanced supply and demand position than during the Covid era.
The downturn in late 2022/early 2023 that followed the Covid-driven boom has not been as severe as some had predicted, and aircraft prices have decreased slightly as a result.
PIA’s program is aimed at owners with relatively low annual usage requirements, typically around 100 hours. In the case of two new owners seeking to acquire an aircraft, the pair is matched by geographical region and aircraft requirements.
For the most part, owners have been in membership schemes or used jet card accounts, and have some experience in the business aviation sector.
Once the partnership has been agreed, PIA aids the pair through the aircraft acquisition and also in selecting an aircraft manager. The manager will oversee maintenance and crew employment. PIA's aviation lawyers handle the formal aspects of the partnership.
Existing owners, on the other hand, are generally those who are under-using their aircraft and wish to share the costs of ownership, which can be exorbitant for an aircraft that is only flown 100 hours per year. However, they typically want to remain in control of what is “their” aircraft and they value the benefits of having a fixed crew.
Over the last three years, PIA has experienced a marked shift to the latter owner-pair profile, to the point where existing owner/new owner partnerships account for around half of the matches that the company facilitates. Around 15 percent of the customers are owner-pilots, although this poses no issues and is easily accommodated. The mix of owner-pilot and passenger owners works well as the flight crew for the latter can also provide mentor pilots, which may be required for insurance coverage.
In terms of aircraft types, PIA’s business is roughly divided into thirds between light, midsize, and super-midsize jets. There have been a small number of heavier aircraft acquired under the co-ownership program, including a Gulfstream G450 that is currently in the delivery process.
The PIA deal typically has a maximum yearly usage of 150 hours per owner, although this can be increased by further negotiation. Although the deal is limited to two owners per aircraft, there is a subservient third-party option, which around 75 percent of customers have taken up. This allows the aircraft to be flown on charter trips to generate some revenue during repositioning flights and to take advantage of periods where it is known that neither owner wishes to use the aircraft.
Molloy said that many of PIA’s matches result in aircraft that are flown for around 100 hours per owner, and up to 150 hours of revenue-earning arranged through a charter manager. This split takes advantage of the usual flight crew capacity of 350 hours per year for a single crew.