Invest

How it works

JPI provide a turnkey fully secured investment solution which involves three key layers:

Joint Venture Arrangment

The Aircraft is sourced by us and packaged into a ‘deal in a box’ which has a set value depending on the exact deal but typically costing between £60k and £80k.

We enter a Joint Venture arrangement via a separate limited company which we name for example JV 1, JV 2, JV 3, JV 4 Ltd etc.  We both own a share of this new company, but your shares are structured as cascading shares so all the dividend and profit is allocated to your share in the shareholders agreement.  This means that you get all the income and we cannot have any of it as our ordinary share does not entitle us to a dividend.

Having secured the most suitable aircraft, a client flying school or similar organisation who we feel will use the aircraft the most (we have placed aircraft with RAF Flying Schools for example),and set up the company.  The new JV Company takes possession of the aircraft which is registered in the JV Company name with the CAA, then the lease is agreed and signed with the client and the aircraft is positioned with them.

We then invoice monthly for every tacho recorded hour of use.  Aircraft are subject to intense regulation and compliance regimes and every hour of use is meticulously recorded and catalogued.  These are submitted to us every month and we charge a rate for each hour.  This varies depending on the aircraft but a typical example would be about £85 per hour for a Piper PA28 or Cessna 172

Typical ROI’s?

Example breakdown of indicative ROI ranges for a Just Plane Investment:

*Based upon 400-hour usage and £85 per chargeable hour
**All of this goes to JV Company and Investor

*Based upon 500-hour usage and £85 per chargeable hour
**All of this goes to JV Company and Investor

*Based upon 650-hour usage and £85 per chargeable hour
**All of this goes to JV Company and Investor

How does JPI make its Money?

JPI are a commercial organisation like any other, but we have structured things to ensure that our income is only gained through the success of your income.  So, we provide for initial sourcing fees and administration fees which are all included in the initial investment cost so nothing extra or hidden whatsoever.  Our ongoing income is a 20% management fee which we take from the gross hourly income from the plane.  So, we only earn that percentage on actual invoiced hours.  Again, your figures of typical ROI’s are all after this is accounted for in the above table so no hidden fees.  There is an enormous amount of on-going management in the leases which we deal with to ensure you have an arm’s length investment, so this modest fee covers that element.  And just like you, the more hours we ensure a client uses the plane, the more money we all make.

How is my Investment Secured?

Simple, we provide several soft control measures and hard control measures to secure your investment and income stream.

Soft Control Measures include the following:

1. Ensuring consistently high demand user clients ensures maximum invoiced income
2. Having Commercials in place via our annual break clauses on the lease and minimum annual usage clauses which guarantee an absolute minimum income, along with the ability to terminate a lease for persistent under-usage and re-position the plane with another client if needs be
3. Sourcing aircraft that have matured beyond their maximum depreciation curve but with recent or new mechanics ensures minimum capital investment with relatively low maintenance overheads and retention of value

Hard Control Measures include the following:

1. Detailed Shareholders agreement legally enshrining the Investors status in the deal
2. Allowance of a charge against the physical asset/plane that ensures the value of the investment must be paid back to the investor before any dividends or profits can be paid out
3. Cascading share structure in JV Company allocates 100% of the dividend to the investor with nothing to us
4. Buy-Back Clause is also provided as a potential option at every annual lease break, this would allow you to effectively sell the plane back to us if you wished to exit the deal

Some of our fleet example aircraft

We position our planes with vetted high-quality GA users. Our clients include leading UK Flying Schools, Private Hire Companies and RAF/Military affiliated Flying Clubs and Schools, ensuring a sustainable future-proof lease model. Our strategy is to mix commercial high demand environments for our planes with clients who have established credible business models so we can maximise income while minimising commercial risk.

If a client under performs and the use of the aircraft does not generate enough income we have annual break clauses and minimum use clauses providing maximum flexibility to potentially re-position the aircraft with a more demanding user. But this serves to ensure only very serious clients lease aircraft who appreciate they are required to use the aircraft as much as possible.