Aircraft Partnership Agreement Template (Free Sample)
Aircraft Partnerships · Free template
Templates / Aircraft Partnerships
A written partnership agreement is the single best thing co-owners can do to keep a partnership healthy. Partnerships almost never fail over flying — they fail over money, scheduling, and exits that nobody agreed on in advance. This sample covers the provisions that prevent those disputes: cost shares, how variable costs are billed, scheduling priority, maintenance authority, and — critically — how a partner exits and how their share is valued. Adapt it to your group and have an attorney review it before signing.
The clauses that actually prevent disputes
Three provisions do most of the work. First, the money split: which costs are fixed (shared by ownership percentage) versus variable (billed by actual hours flown), and how the reserve for the engine is funded. Second, scheduling: how conflicts are resolved and whether there are any use limits. Third, the exit: a right of first refusal, how a departing partner's share is valued, and a buyout mechanism so one person leaving doesn't force a sale.
Get those three right and most partnerships run for years. Leave them vague and the first disagreement has no agreed answer.
The template
1. Parties & Aircraft
- This Agreement is entered into by [PARTNER NAMES] (the "Owners") for the shared ownership and operation of the aircraft: [MAKE/MODEL], registration [N-NUMBER], serial [S/N] (the "Aircraft").
2. Ownership Shares
- The Owners hold undivided interests in the Aircraft as follows: [Partner A — %], [Partner B — %], [etc.]. Title is held [as tenants in common / by an LLC named [___]].
3. Financial Arrangements
- Fixed costs (hangar, insurance, annual, financing, subscriptions, taxes) are shared in proportion to ownership share and funded by monthly contributions of $[AMOUNT] due on [date].
- Variable costs (fuel, oil, maintenance keyed to hours, engine reserve) are billed to each Owner by actual [tach/Hobbs] hours flown at $[RATE] per hour.
- Engine/overhaul reserve: funded at $[AMOUNT] per flight hour, held in the partnership account.
- A partnership account is maintained at [BANK]; expenditures over $[AMOUNT] require agreement of [all/majority] Owners.
4. Scheduling & Use
- The Aircraft is reserved through [the shared scheduling system]. No Owner has priority except by prior agreement.
- Use limits (if any): [e.g., no Owner may reserve more than N consecutive days without agreement].
- Away trips: Overnight or extended trips require [notice / agreement] as set out here: [___].
5. Maintenance & Airworthiness
- Owners must report discrepancies (squawks) promptly and may not operate the Aircraft when it is known to be unairworthy.
- Maintenance decisions over $[AMOUNT] require agreement of [all/majority] Owners; routine maintenance may be authorized by [designated Owner].
- The Aircraft's inspections and airworthiness status are tracked and visible to all Owners.
6. Insurance
- The Aircraft is insured with hull value of $[AMOUNT] and liability limits of $[AMOUNT]. All Owners are named insureds and must meet the policy's open-pilot/qualification requirements.
7. Records
- Every flight is logged with date, pilot, and [tach/Hobbs] start/end. Maintenance records are kept with the Aircraft and available to all Owners.
8. Sale or Transfer of a Share
- Right of first refusal: An Owner wishing to sell must first offer the share to the other Owners on the same terms, who have [30] days to accept.
- Valuation: A departing Owner's share is valued at [fair market value determined by (agreement / appraisal / formula)].
- Buyout: The remaining Owners may purchase the share over [term] at [terms]. No Owner may force a sale of the Aircraft except as provided here.
9. Default & Dispute Resolution
- An Owner who fails to pay amounts due for [30] days is in default; remedies include [suspension of use / interest / forced buyout].
- Disputes are resolved by [mediation, then binding arbitration] in [STATE] before litigation.
10. Term & Dissolution
- This Agreement continues until terminated by written agreement of all Owners or by sale of the Aircraft. On dissolution, proceeds are distributed by ownership share after payment of debts.
- Signatures: ______________________ Date: __________ (repeat per Owner)
Or skip the paperwork.
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