No Equity - Frequently Asked Questions
Please find below, a selection of Frequently asked questions which relate to our unique "no equity" aircraft groups. If your question isn't answered by these, please feel free to contact us and our friendly helpful staff will be pleased to assist with your enquiry.
Question: How does it all work?
Answer: We operate like any normal (equity) group, the only difference being that you don't have to buy a share. You simply pay the cost price hourly rate every time you fly the aircraft and a fixed cost every calendar month to cover the standing charges.
Question: Are there any hidden costs?
Answer: None at all! All you ever have to worry about on the financial side of things is your monthly standing order and the hourly rate for the flying you have done. The only additional charges may be things such as landing fees and overnight parking if you land away.
Question: How long can you guarantee these costs for?
Answer: We can guarantee the monthly costs for a long time to come as these are fixed costs which do not really fluctuate, however the hourly costs may be more likely to fluctuate due to the fact that they are mainly made up of fuel costs. The bottom line is that if ordinary (equity) groups and clubs put up their prices we may also have to increase ours, however because of the way we operate our finances we can avoid price fluctuations for much longer than normal operators or flying clubs. Our business was established to counter the rising cost of flying in order to provide cost price flying on your hourly rate and as such we will never be charging our members more than it costs to run your aircraft. Other operators claiming to be like us have tried this and had to increase their prices in search of profit. We have been operating like this for a long time at no profit on our hourly rates and can absorb fluctuations in fuel prices much more easily as a result. Our club really is a club for its members!
Question: What sort of experience is required to join the groups?
Answer: We take any experience levels from Ab Initio (trainee) pilots to experienced ATPL holders. All we ask is that we can check you out and that you maintain currency with us. Our insurance provides for training and covers all experience levels.
Question: How long will the checkout take and what are the costs?
Answer: All we want to see is that you are "safe" and won't harm yourself or the aircraft. The amount of time required can vary widely between individuals and can also be linked to the complexity of the aircraft you are flying. We have friendly and helpful instructors who will perform the checkout or training and be sure that you are indeed "safe" Costs for training and checkouts are detailed on our training pages.
Question: What are your currency requirements?
Answer: Our currency requirement is generally 60 days and we also ask that every 6 months you have a short consistency check with an instructor regardless of recency which can also be combined with your bi-annual qualifying dual flight if you need one for licence renewal.
Question: Can I learn on the aircraft?
Answer: You can learn using our aircraft as we have public transport category maintenance and training insurance cover for any experience levels.
Question: How would the financial arrangements work i.e. direct debit or standing order?
Answer: You simply need to set up a standing order for the monthly standing charge, to leave your bank account on the 1st of each month. The flying costs are billed to you retrospectively at the end of each month which are payable within 14 days. If you uplift any fuel at your own expense during the month you pay for that at source and provide us with a copy of the fuel invoice which we credit in full against your flying bill.
Question: Who is the actual owner and maintainer of the aircraft?
Answer: Aircraft Grouping Ltd owns the aircraft and is responsible for all maintenance, parking fees, insurance and any other bills. The great thing about "no equity" is that we are responsible for all unexpected bills etc and so you will never be asked for a "cash call" like you could be in an equity group. This is all detailed in our contract which describes our obligations to you.
Question: Will there be any restrictions on taking the aircraft away overnight, for several days or abroad?
Answer: There are no restrictions on the useage and you can take the aircraft away as often as you like. We use a uniquely designed internet booking system which was tailored to fit our group sizes and requirements perfectly and facilitates fair short term use and good long term (trip) availability.
Question: How would I apply for one of these shares?
Answer: Simple, just contact Aircraft Grouping on the numbers supplied on our contacts page and we will answer any further questions you have before arranging to meet you, show you around, show you the aircraft and our contract and you can sign up right away if you're still interested.
Question: What happens if I want to leave the group?
Answer: When you sign up for a no equity share we issue you with a contract which details such things as the cancellation procedure etc. We also take a deposit from you which is equivalent to six months of the monthly standing order. (eg £110 PCM 110x6 = £660 deposit)
Basically there is a six month cancellation clause so if you want to leave the group you just submit your notice and you then have two choices:
i) Cancel your standing order, have no further access to the aircraft, walk away clean but use your deposit to pay the six months cancellation so you have no further outlay.
ii) Give your notice, keep your standing order in place and be able to have access to the aircraft for a further six months then receive your deposit back in full at the end of the notice period.
Question: How many members do you expect to be in the group?
Answer: An absoulute maximum of 20 per aircraft although some will be students which means the availability will be higher due to the availability of their instructors. I.E. Two people with the same instructor can only fly if the instructor is available, effectively halving the utilisation for the shares of those two members.
Another thing you may wish to consider is that your membership of one group often gives you access to multiple aircraft or types in the same membership category, not just the one you have an initial interest in. We also offer temporary access to our other types for a small extra charge to interested members.