Don't Call It A Flying Club
By Bob Mackey, representative for the EAA Aircraft Insurance Plan, Administered by Falcon Insurance Agency
I got a call from a pilot who was interested in forming a four-way airplane partnership. When this would-be 25 percent airplane owner explained the ownership plans for the airplane, he kept referring to the group as a "flying club." Finally I said, "Hold it! Please, please, please do not use the term flying club!"
Flying clubs are a great way for a larger group of pilots to share aircraft ownership and reduce one's costs of aircraft ownership. Flying clubs also have access to many different types of aircraft. But flying clubs are also difficult to insure because many aviation insurance underwriters typically consider them as disorganized, lacking systems for managing airplane maintenance & operations and the pilot information of individual club members.
There are many successful and well-run flying clubs. But they're typically charged higher premiums than airplane partnerships. If you're thinking about forming a four- or five-way partnership, then do just that - set up a partnership, perhaps a limited liability corporation, whatever your legal counsel advises. Then give the EAA Aircraft Insurance Plan (Falcon Insurance Agency) a call and we'll arrange your aircraft insurance.
Just don't call it a flying club!
If you would like to know more about insurance for an airplane partnership, give Falcon Insurance Agency a call, the official insurance agency for the EAA Aircraft Insurance Plan. Call 866-647-4EAA (4322) or submit a quote request at www.eaainsurance.org.
EAA INSURANCE TIPS is a special EAA Member benefit. If you have an insurance related topic you’d like to see addressed or if you have any comments, please email Bob Mackey. If you need an insurance quotation call 866-647-4EAA (4322) or submit the online quote request form.