This Matchmaker Finds Twosomes To Own A Business Jet Together
Enter Partners In Aviation (PIA) based near Chicago. Founded in 2016 by Mark Molloy, a career business aircraft salesman turned entrepreneur, the company sports the tagline 'Your Airplane. Your Schedule. Half The Cost.'
Finding a 50% co-owner can appeal to a current aircraft owner interested in selling a half interest as an alternative to ditching the aircraft if it's not being used enough. Conversely, an aircraft non-owner sees value of becoming a half-owner for the benefits that come with aircraft ownership at half the cost. According to PIA, this arrangement works best for those who fly 50-150 hours per year and can coordinate schedules with one another.
Once engaged, PIA's search for compatible co-owners begins. The firm charges a one-time success fee only if it successfully matches two owners to one aircraft. In addition to finding and introducing shared ownership prospects, the firm will also guide the process and help with an aircraft acquisition if needed.
The 6 month contract to find a match requires a small fee in advance, which is refundable if a match is not made (less any marketing costs). The company claims an 80% success rate which can take just 60-90 days thanks in part to Molloy's tenacity and a presumably monstrous Rolodex assembled from working in the industry for decades.
The balance of the success fee is due at closing. Once the engagement has concluded, there are no recurring fees, nor does PIA collect finders fees from other service providers in the transaction. Further, the company does not own, operate or broker any aircraft.
It's a contractual requirement that co-owners sign up with an outside aircraft management company who coordinates travel schedules, maintenance, crewing and the reconciliation of miscellaneous direct flight costs charged to the correct owner for a specific trip such as fuel and catering. Owners split fixed costs such as the monthly management company fee, insurance, hangar and maintenance.
Currently PIA operates in the U.S. and Canada, and finds that most clients settle on light and super-midsize business jets. A common theme is that each co-owner has had previous private aviation experience either through aircraft ownership, charter or jet card usage or a having flown with a fractional aircraft provider such as Berkshire Hathaway's NetJets. The majority fly non-business leisure trips, which tend to allow more flexibility in scheduling if ever needed.
While there' s nothing proprietary or patentable about the PIA method, its value-added proposition is by smoothing the process by having developed contract templates throughout the years that work best in an aircraft co-owner relationship. They've seen all the issues, obstacles and questions, and more than anything, have an eye for finding the perfect match.
This exercise includes defining key points during each co-owner's 3-year commitment such as their entity structure and tax benefits, terms regarding early termination or extension of the contract and who pays what for the care and feeding of their shared airplane.
They also suggest contract language for an aircraft purchase agreement (if needed) plus the aircraft management and pilot services agreement. Co-owners can even decide together if they'd like to have their plane chartered out to others by the management company when it's not being used by either of them.
Compared to romantic matchmaking which typically gets derailed by the slightest kerfuffle, PIA matches withstand the test of time. 'The only reason to ever leave the program than I can think of is if your mission changes", notes one PIA client. Another shares 'My co-owner and I went beyond our airplane business relationship and our families are now close friends. We even went a step further outside of the PIA model and now co-own a vacation home together.'
Disclosure: I neither own an interest or am compensated by PIA or its affiliates, nor have I benefitted or expect to benefit by independently writing this article.
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