-1
$\begingroup$

So I just bought a plane and have a flight instructor that wants to rent it from me for his some odd 12 students. Now, I already have a DBA for my real estate business, could i have my DBA own it or? I guess what i want to know is what is the best way to go about setting this plane up so that i can, in the future do a FBO that i plan to grow to more than one plane? I need to protect myself now but prepare for more business.

$\endgroup$
  • 5
    $\begingroup$ This is called a "lease-back" and it is highly recommended that you talk to an aviation attorney for this. You can end up with a lot of liability and expenses with a poorly written contract. For example, when used for hire, you need 100 hour inspections. With 12 students that could be every 2-4 weeks. Who pays for it? What about when a student bends something up? Who pays your insurance, which will be much higher? Overhauls? Avionics upgrades? Other maintenance? $\endgroup$ – Ron Beyer Mar 13 '17 at 2:43
  • $\begingroup$ Here is a great read from AOPA on lease-back $\endgroup$ – Ron Beyer Mar 13 '17 at 3:39
1
$\begingroup$

Talk to a lawyer. You need an airtight lease agreement

Do not tie it to an existing profitable business. If someone dies in your plane the family will sue everyone in sight and a jury will award them some serious cash.

Get the FBO's insurance to cover you and get a copy of the insurance document to that effect. Then go out and buy additional insurance. Not kidding. Talk to a broker.

Leasebacks are great when stuff goes well but it's still a business and when SHTF it gets downright nasty. Aviation is a great hobby but it's a dirty business.

|improve this answer|||||
$\endgroup$

Not the answer you're looking for? Browse other questions tagged or ask your own question.