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Sunday 5 February 2012

The Aquilla also a very interesting business investment...

I am a technician, so I usually don't endeavour on the economical path. But this is an open door I would like to kick in anyway:

The shared ownership construction with the Aquila of KLM Aeroclub is also very interesting as a business investment opportunity. Even if the business does not appoint a pilot that can fly at a reduced rate. The expected ROI is 10%! 




The initial fee is paid back according a linear depreciation model over 10 years time. That is to say: the depreciation is to a (conservatively) estimated residual value of 1/3rd of the newly bought value. After 10 years, the aircraft is to be sold, unless the corporation decides unanimously to do otherwise. The revenue is then equally divided over all shares. So, assuming the residual value is equal to the estimated 1/3rd, the full initial fee is paid back over 10 years time. Should the residual value be more that estimated, that that's extra profit for the investors.

The shareholder gets, in exchange for his pre-financing the aircraft, the right to appoint one pilot per share that gets to fly the airplane at a reduced rate. It is not necessary to appoint a pilot, and the pilot may be someone else than the actual investor. The aircraft will be available for all KLM Aeroclub members to fly. Shareholder appointed pilots fly at a rate that is €20,= per hour less than the other Aeroclub members. This difference gets "bottled up", and divided over the shareholders yearly (the dividend).
On top of the presumably cost-neutral depreciation scheme, the dividend forms the profit. With assumptions on flight behaviour based on the flight behaviour of the rest of the KLM Aeroclub fleet (400 hours a year, 50% by not-shareholders), the yield is expected to be more than 10%!
A minimum number of shares is set to 40, which would make the price €4000,= per share. The maximum is set to 50 shares, resulting in a share price of €3200,=. Everybody can buy as many shares as they like. Depreciation, dividend, and residual value are paid per share, so twice the number of shares equals twice the money paid back.

The above holds for both private people, as well as businesses. Businesses have the extra advantage that their investment is no longer part of their current assets, and are therefore exempt from taxes.




More information can be found in this flyer:

http://www.klmaeroclub.com/_files/Aquila-aanbieding.pdf (in Dutch),
or visit
the KLM Aeroclub site  (also in Dutch) and click on the Aquila Banner
This will take you to the full text, a presentation of the plan, a calculation sheet, and even an agreement...

Of course, I would be more than happy to give you further information. Just leave me your contact details through the contact page, and I will get back to you as soon as I can.



And be quick, over half the shares have already been reserved ...

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