FAQ

Commercial Travel has been adversely affected and the very nature of this industry is likely to change forever, but we deal in General Aviation which is Light Aircraft for leisure and light commercial roles not Big Jet Aviation for passenger transport

Though it may seem counter-intuitive, the opposite is true.  Firstly, demand for lease aircraft as apposed to Clubs and Schools buying and owning their own aircraft is rising.  Secondly the need for both out-of-work and in-work commercial pilots to maintain their training and ratings is very high. So, while Pilots may be struggling for work, they will need to spend more time on low-cost Light Aircraft to maintain their basic ratings or risk losing their ability to fly full stop.  Thirdly we have developed strategic relationships with schools and clubs who have a certain resilience even in an economic downturn. Notably Military affiliated schools and Clubs are not affected in the same way, as demand comes from their Military members as well as private members. While some schools and clubs may ultimately suffer, a core of these will always remain busy as their will always be many wealthier people who fly…  Fourth, despite economic hardship for many, there is also conversely an increasing desire to live life for the moment and gain valuable life experiences as ‘life is to short’

The income to you is from the hourly invoiced use of the plane by the client who leases it. So, a Flying School who uses the plane for 500 hours per year will be invoiced monthly for the number of hours used at the hourly chargeable rate. This is paid directly to a Joint Venture UK Limited Company which you as the Investor and JPI jointly own, but you receive all the net income after the maintenance and over-heads of the aircraft. The ROI’s vary but are typically between 2 and 5 years

In several ways, firstly the deal is structured so that the aircraft is owned by a Joint Venture Company which you then have a charge over the plane on. It is also written into the shareholders agreement that no dividend or profit may be taken from the company until your full investment has been paid back. We also have other soft measures in place that allow us to act punitively on a client who is not using the plane enough. Ultimately, we can ensure the plane is moved if needs be to another client who will use the plane more (the more the plane is used the more invoiced hours)

If you decide the investment is not for you, every 12-month anniversary of the lease signed with a client flying school/club, a break clause allows us to end the lease. This coincides with a Buy-Back clause in our shareholders agreement which allows you to sell the plane to us at fair market value and exit the deal

You can have as many planes as you want, we simply make sure that each aircraft is treated as a separate JV arrangement and has its own JV Company wrapped around it. This is both tax efficient and limits liability protecting all involved. If you JV with us and like what you see, we could then simply set up as many more as you like, with multiple aircraft placed at multiple flying schools/clubs

We try to ensure planes are placed with high demand users, but in the event, this does not pan out we have minimum use clauses and break clauses in place. These give us control measures to safeguard your investment and minimise any negative impact on ROI’s

The aircraft will be owned by the Joint Venture Company which we both then own together, But a charge on the aircraft entitles you to your entire investment back before it is considered an asset of the company. The planes vary considerably but two very typical examples would be the popular Piper PA28 and Cessna 172 trainer/tourers. These four seaters are ideal for both training and hire four touring, with excellent reliability and low fuel burn, they are loved the world over and these two models are by far the most popular. However, deals can be made for a range of aircraft including 2-seater Cessna 152’s, and Piper Tomahawks where ‘hour building’ and cheaper entry level training is a pre-requisite (these have a lower capital cost for investment). At the other of the spectrum aerobatic aircraft and more complex types with retractable under carriages, bigger engines for faster cruise speeds and variable pitch propellers also have their own unique high demand environments. The calculation of viability is lead by hourly demand versus cost of investment versus hourly charge rate. This is weighted with a consideration for likelihood of being able to place the aircraft with a range of clients. Where there are certain risks on this equation the charge rate is higher to balance the cost/benefit out. But they all presently fall into GA Light Aircraft categories

JPI Takes an initial sourcing and administration fee which is wrapped into the investment cost for your ‘deal in a box’, and then takes an ongoing 20% management fee which is 20% of the gross hourly charged revenue for the plane

The Plane is insured for its full value, so unlike an environment where you may insure a car and have to suffer a loss relative to the actual replacement cost (hence often buying products like gap insurance), we would receive the full insured value of the plane. If the Plane is worth £40,000 and we insure it for £40,000, and a write off was claimed then we would receive the full £40,000

Ultimately the plane is under lease and operated by a third party, but if you are a pilot it is highly likely we can arrange for you to be an honorary member of the club leasing the plane and access it at a reduced hire rate. We also offer a Learn as you Earn proposition which is geared towards using the investment to pay for your PPL. – Click this link to find out more

No investment is guaranteed and anyone who claims that it is, should probably be given a wide berth. That said we have worked tirelessly to create a totally unique proposition that provides multiple layers of protection for your investment and multiple control measures to effectively mange your ROI. You have a charge against the asset until your investment is repaid. You have a shareholder’s agreement which protects your rights and ensures only you can receive 100% of the dividend of the JV business. We ensure break clauses and minimum use clauses in the leases give us options should the income prove low with a client

The figures we quote in the indicative deal numbers all account for estimates of annual running costs for the plane. So, this includes for example Insurance, Annual Airworthiness Certification and Periodic Checks mandated by the CAA, we also have unscheduled maintenance and engine sinking fund allowance for repairs and longer-term refurbishment or replacement. Then we have our 20% management fee all factored in these numbers. So, in a scenario where we indicate a 3-year ROI, all that overhead is estimated within the numbers. Of course there are unforseen’s, and while we attempt to accurately map the cost projection it is possible to have one year with virtually no unscheduled maintenance and then another year where several things happen – that is just the nature of any mechanical asset. So, we suggest that people take a longer term cash-flow perspective purely to allow for the fact that while we can fairly accurately predict what will need replacing and what might go wrong, we cannot easily predict when.

Just Plane Investment is a trading name of JPI Aviation and is not FCA Regulated. We do not give any kind of financial or Investment advice or indeed provide any Financial Product or brokering activity. The Opportunity is for a Joint Venture Business in which JPI as partners in that Joint venture Business facilitate the setting up of the business and the acquisition of the aircraft and placing it with a client for our mutual benefit in the JV Company. We would always recommend that independent legal and financial advice is taken before entering a Joint Venture arrangement to ensure that it is suitable for your needs

Our indicative deal numbers quote ROI in Timeframe, Annual Percentage, and annual net income. The ROI’s depend upon several factors including the cost of the deal, the annual usage of the aircraft and the hourly charge. The balance of these factors typically see’s ROI’s of between 2 and 5 years. While not guaranteed we have multiple control measures that allow us to influence and drive ROI performance. These include working with higher demand clients, minimum use clauses in lease agreements and the ability to re-position the aircraft with a new lease client if it ultimately under-performs

JPI does the groundwork to source the aircraft and the client, then we jointly set up the JV Company to own and lease the aircraft. You will nominate a Director for the new Business along with a representative from JPI and you will be a shareholder in the new business. You would also be the account mandate holder for the bank account. We of course assist in all of this, and we set up the company but we like the JV Partner to set up the bank account and we advise you have a solicitor or adviser look over our shareholder agreement for peace of mind. But ultimately there is very little you need to do

Your shares can be owned in your name personally or in the name of a corporate shareholder (a separate company that you nominate) it is entirely up to you

If you choose to have your share of the JV Company owned by a corporate shareholder then you could choose to have as many shareholders in that entity as you wished as our JV Partnership would be between ourselves and the corporate shareholder you nominate, but we could only accept a single Director from that entity on the JV Company Board and it would work as a single Investor/JV Partner. We would not have more than one individual Investor

Just Plane Investment Is a trading name of JPI Aviation which started trading in 2020. But our Founding Director has been owning and leasing light Aircraft since 2005 and has over 30 years’ experience in the Aviation field. Our Directors also have years of experience themselves as seasoned Property Investors so have an extensive understanding of the Asset Investment model. The nature of company law and the fact that our JV Companies which we set up together which then own and lease the plane, are themselves separate companies, ring fences the investment