Boatguy wrote: ↑Mon Jan 02, 2023 7:00 pm
My plane was not on DiamondShare. I think the value add from LifeStyle would be marketing; finding a block rental customer. I setup my own block rental system, agreement, etc., put up flyers at my airport and another nearby, and had no trouble finding a customer.

This is effectively what I did for years. It was a hybrid block rental (prepaid minimum hours per month) that I worked up. The plane was owned by my for-profit (Sub-S) corporation. Insurance was handled by adding the carefully vetted pilots as named insured on my regular personal and business policy at a nominal cost per pilot. The number of total pilots allowable on the policy is limited and the insurer (Avemco) would likely balk at frequently adding/deleting pilots. But neither of these limitations ever became a factor.

For the first 8 years or so I had a partner in the plane/corporation but he wound up selling out to me. Not long after that he wound up going through a divorce. I feel like I ducked that potential complication, but the possible ramifications of my being involved if the timing had been different is what prompted my prior admonition.

michael.g.miller wrote: ↑Mon Jan 02, 2023 6:50 am Do you still have your plane on DiamondShare? If so, could you share what value you see them adding, over setting up a private bulk lease? Sounds like you have thought this through pretty thoroughly, so I'm curious to hear more about your experience.

My plane was not on DiamondShare. I think the value add from LifeStyle would be marketing; finding a block rental customer. I setup my own block rental system, agreement, etc., put up flyers at my airport and another nearby, and had no trouble finding a customer.

Do you still have your plane on DiamondShare? If so, could you share what value you see them adding, over setting up a private bulk lease? Sounds like you have thought this through pretty thoroughly, so I'm curious to hear more about your experience.

DiamondShare through Lifestyle, or a private bulk lease of hours done privately, are pretty much the same and neither is a partnership in any sense. Unlike a partnership, the original airplane owner is the owner; period. You are not sharing equity ownership, which renders moot most of the questions raised; though they would be relevant in a shared equity partnership. The lessees are customers who live within the rules of the lease agreement. The answers to most of those questions are up to the owner by virtue of how they draft the lease agreement. If you use the Lifestyle arrangement, then the rules are as they have defined. If you setup the same arrangement for yourself, you have a blank piece of paper and write the rules anyway you wish.

When I bulk leased hours on my DA40NG, I set down the rules to those questions in advance. So yes, you need to think through lots of situations and define them, as is the situation with any contract. As the owner, you make the rules. That is entirely unambiguous.

But this is all legal stuff. In a perfect world, you have a lessee who is not only agreeing to your rules, but is also comfortable and ultimately a flying, if not legal, partner. You want someone who will be happy living within the rules you setup. Someone who respects and cares for your airplane the same way you do as owner. But you should still be prepared for the inevitable minor damage or mistake. A lessee can make a mistake just like an owner. This requires an honest conversation between you and your potential customer. My rule of thumb for these situations is a minimum of three meetings with the potential customer. Two of those should be over food, and the last one should include considerable alcohol! You both need to drop the "good behavior" and find out who is doing business with whom.

Since that process is not foolproof, my bulk lease agreement provided that either party could terminate the agreement immediately; no notice necessary. If you don't want them flying your plane, or they don't want to be your customer, then either of you should be able to end the relationship, with no financial penalties, upon notice.

But be clear that whether DiamondShare as organized by Lifestyle, or a bulk hours lease organized by you as the owner, the pilot(s) who share the use of the plane, are not equity owners. It's your plane and you make the rules.

Another thing to consider about pretty much any partnership. To wit: You are also partners with their spouse, heirs and creditors.

I had exactly the same concerns. I talked with a number of existing and a few developing partnerships in Atlanta and could not find the right match for the financial commitments (or lack thereof) from the potential partners and incompatibility on scheduling rules. I had a similar challenge with a ski boat partnership with a couple of my fraternity brothers right out of college that I was determined not to repeat (different order of magnitude of course). I ultimately decided to buy a low-hour XLS myself so I could fly it, hangar it, and maintain it exactly as I wanted without the hassle of achieving consensus on every little item. It's definitely a lot more expensive in fixed costs, paying hangar, taxes, insurance, annual & other maintenance solo, but it has been the best decision I've made since learning to fly. I would be even more wary of a partnership arranged by a solely profit-motivated company.
If I were to entertain a partnership, it would only be a private group with well-financed partners that own multiple aircraft. In my limited experience, single-aircraft partnerships require too many partners to provide easy access when you want to fly. I fly whenever and wherever I want without worrying about getting home for the next guy's reserved slot, which can lead to negative pressure to push bad weather, etc.
I'm sure partnerships make sense for some, especially those that fly fewer hours and mostly local.

I see DiamondShare as a glorified partnership. The hardest part to a partnership is not finding the partners, but finding the RIGHT partners. I'd hate to plunk down a ton of money only to be paired with people who I wasn't compatible with.

You'll have to consider:
- Flying schedule compatibility
- Maintenance compatibility (what if they don't want to get a squawk fixed, but you do?)
- Upgrade compatibility (what if they want to upgrade to Beringer brakes, but you're happy with Clevelands?)
- Experience compatibility (what if they're a fresh PPL, and you're a 10000 hour ATP? who picks up the insurance tab? who picks up the wear and tear for training flights?)

All of these things can absolutely be negotiated and considered with the right partner.. but do you really want a company doing that for you?

I’ve got a DA62 out of KFRG, if anyone is interested in being a leasee. Similar terms to Diamondshare.

Finding a Diamond rental in the SAT area has been a challenge. For that reason I’ve contemplated Diamondshare as either owner or lessee. The order of preference is DA62, DA42, DA50 and finally DA40. The single engine options would be only as lessee or short term fractional. I’d be curious if there are others in the area looking for something similar. I haven’t seen any Diamondshare interest in central Texas on the Diamondshare site.

I shared my DA40NG (though not in the DiamondShare program) when I first got it 3 1/2 years ago and had no shortage of interest. I think there are plenty of people who would like access to a plane on a fixed monthly payment without the concerns of ownership.