Announcement

Collapse
No announcement yet.

5% ownership rule abolished - what next for training?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • 5% ownership rule abolished - what next for training?

    I was reading on the Flyer Forum that the new ANO has done away with the 5% minimum ownership rule. If so, it follows you can then say have a 50p share in an aircraft and be a part owner. Recent changes have of course enabled owners to receive paid instruction on their non-factory built aircraft.

    So you know what's coming next, my question is therefore will some schools operate kit-built aircraft for the first time and offer students a share for say a 1 so that they can receive training on non-approved aircraft.

    Is this an unintended consequence? Same for Grp A where schools could use the same tactic to use LAA permit kit built aircraft for instruction.

    I'm sure Geoff will know the exam answer.

    Interesting times!

    Cheers, Paul

    Eurostar G-CEVS
    Eshott

  • #2
    5% ownership rule abolished - what next for training?

    Yes, why not? If the insurers are happy with it then what's the problem?

    Comment


    • #3
      5% ownership rule abolished - what next for training?

      I don't suppose anyone at BMAA towers has communicated any analysis of this change???? I haven't seen anything

      Comment


      • #4
        5% ownership rule abolished - what next for training?

        I'm not sure what you mean by analysis but I have had email discussion with the CAA since the change and asked if a 0.001% share for 1 is feasible. The answer is that the ANO used to be the place where the minimum 5% share rule was written and that rule has now been withdrawn, and so there is no limit on fractional ownership. However, the underlying reason for the 5% rule being put in place hasn't really changed; that is to allow shareholders to pay for use of their aircraft without it being considered as hire or a commercial flight, but limit the number to try to prevent the misuse of aircraft whose airworthiness regime was not designed for commercial activity and the protection of uneducated third parties.
        We discussed the potential for misuse, abuse or creative use of the new regulatory freedom. If a genuine group of owners of 20 want to increase the group size to say 30 to help manage costs there certainly is no regulation to stop them now. Each owner will have to be registered. Using the Trustee of a group system this just means that the CAA Registration Department has to be informed by completing the registration owner document with the new owner's details, name, address and % of share and sending it in. It is likely that the requirement for owners to be properly registered in this way will be the requirement that stops a school from selling a share in an aircraft as part of a single flight. If made aware of such an abuse of the new relaxed legislation it is likely that the CAA would seek to stop it by either further regulation or prosecution.
        However, if a school decided to make a type accepted aircraft available for instruction for shareholders, as they can of course now, there is no minimum equity requirement anymore and so for committed students paying less than a 5% share may make it worthwhile to go through the regulatory requirements for registration.

        Comment


        • #5
          5% ownership rule abolished - what next for training?

          The likelihood of a school having, say, fifty one per cent members ("Owner" holding 50%) would be somewhat unlikely, methinks.

          Comment


          • #6
            5% ownership rule abolished - what next for training?

            So when changing the members of a group do you simply supply a new CA04? Or do you also have to supply a CA1 as well? It seems a bit steep to have to pay for a re-registration each time... does this fairly reflect the costs borne by the CAA of processing it?

            Comment


            • #7
              5% ownership rule abolished - what next for training?

              Full details on the CAA web site. Just complete the Trustee Grid and send in to CAA. No fee.

              http://www.caa.co.uk/Aircraft-register/Registration-information/Group-ownership-of-aircraft/

              Comment

              Working...
              X