Professionally Managed Shared Ownership

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Professionally Managed Shared Ownership
2
Overview

• What the heck is Shared Ownership?
• Hasnt that been around for a while?

3
History

• Co-ownership, Fractional ownership,
  Shared-ownership
• Shared Ownership is
• Conceptually like Fractional Ownership
• No provision of Crew
• Owner Flown Fractional
• Not regulated under FAR 91K

4
History (Cont.)

• Isnt this just a fancy flying club?
• For profit
• Smaller owner / aircraft ratio of 5 or 61
  instead of 30 or 401
• Largest shared-ownership biz
• New aircraft focus
• Multi-location

5
Industry Drivers

• High relative cost of Aircraft Acquisition
• Rapid increases in technology
• Acceptance of Sharing is OK
• Real Estate Time Shares
• Jet Fractionals
• Partnerships

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Concept Growth
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Future Growth
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Shared Ownership Benefits

• Cost Predictability
• Most of the time, there the airplane sits, a
  ticking time bomb waiting to detonate and
  vaporize whats left of your checking account.
  Some years it requires only modest funds to
  support, other years it consumes a good portion
  of the kids college fund contributions.
• Aviation Consumer, Fractional Buy-Ins, Volume
  32, issue 6, June 2002

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Benefits (Cont.)

• Enhanced Availability
• National interchange
• Local Fleet
• Maximize the Aircraft, Minimize the Expense
• Simplified Management
• Financial (Tax) benefits of ownership with less
  downside risk.

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Industry Survey

• Two large Shared Ownership providers
• AirShares Elite, Inc. Atlanta, GA
• 9 Locations, 29 Aircraft
• OurPlane, Inc. London, Ontario
• 11 locations, 19 Aircraft (est.)
• Other Providers
• 11 others (1-2 aircraft each)