Guys, my brother in law is considering a share in an '84 CItation. He knows nothing about airplanes and I suspect this is somewhat of midlife crisis deal, but regardless he needs help so I thought I'd jump in. I fly a 206 and know nothing about jets....zero, zip, zilch. Please pardon my ignorance but I'd like to give him some valid reasons to not do this, so I need advice/opinions.
Without getting too in depth, what is everyone's general opinion of this plane: 1984 Citation III w/8000 hrs AFTT with both engines appearing to be original w/8000 hrs each (guess that's possible but isn't that ALOT of time?). It is enrolled in Cessna Maintenance program.
What are some realistic operating costs and what should he expect when the time comes to part ways with his share?
Thank u gentlemen!

Edit:change title

First of all a Citation III Model 650 is a very different aircraft then a CJ or CJ3 which are Model 525s.

An '84 650 is an early SN plane. You can check what the asking price for these are on Controller.

How much is he putting in? Such a share is highly illiquid and good chance he can't get out.

Fuel burn is around 1500pph for an 800nm 2 hour trip at FL390. That is 224 GPH. Not very efficient compared to modern turbojets that can do that trip in around half the fuel.

The Honeywell TFE731-3C-100S engines have a 4,200 TBO. So depending on when they were last OH'd they could be coming up for a very expensive OH. And second run OH's are often more expensive then the first OH due to more parts needing replacement.

You can't predict his operating costs until you know more what his deal is. What programs are the plane on at what hourly cost? Are the engines on a fully paid in program? What is the maintenance status of the plane? When was it's last major inspection and what major inspections are coming up? What is the time to OH for all life limited parts? Does he pay for 25% of all maintenance costs? What is the deal for pilots, hangar, insurance? What are his missions and trip lengths?

If he is paying $150K - $200K to buy in then he should spend a few thousand and hire someone knowledgeable to review the aircraft logs and maintenance status, advise him on the likely future maintenance expenses, and appraise the aircraft value.

Frankly, he will likely do better chartering or buying a Jetcard depending on his missions.

If you want the names of some folks then PM me.

If he just won $300m in the Powerball Lotto I wouldn't worry about him.

If he has $2m life savings in his retirement account and he just saw one listed on Craigslist for $400k then I would have him committed.

A Citation 3 is not a CJ3.

What Allen said.

Allen thanks for the clarification. It is a Citation III.
Haven't received an answer yet regarding the specifics of the program its enrolled in. His share of the engine and mains reserve is $800/hr.
He also pays 25% of all associated costs-hangar, ins, crew, etc. which totals approx $2300/mo. I assume he also pays his share of maintenance.
It just had a major inspection and the next one is due the first of the year.
He has no mission profile.....doesn't travel much for business, and vacations 3-4 times a year. Makes absolutely no financial sense!
There's more to the story but I'll leave it at that for now.
Thanks again for taking the time to respond!

NetJets. Works great.

NetJets. Works great.

So lets use your numbers:

Fuel 225 gph x $3.50 = about $800
Engine & Maintenance = $800
$2,300 x 12 = $27,500 / 25 hours flying = $1,100

We are at $2,700/hour plus FBO fees, crew expenses for 2 pilots, etc. without considering the capital costs. It can easily run him over $4,000/hour. Especially when you factor in the capital buy-in he will not get back.

I believe a 25 hour Marquis card costs $100,000 or $4,000/hour with no capital costs or obligations.

And we haven't spoken about safety. You know anything about the background and training of the pilots? Would you put your family on the plane? Netjets Marquis card flies under Part 135 and has an outstanding safety record.

Makes no sense from many angles.

Run

Deals like this on a Citation III are generally very bad for the unsuspecting newbie who is lured into the deal. It will take newbie's experts more work to investigate this 1/4 share than it would to investigate the whole airplane, because partial ownership creates its own complexities. Newbie would also need to be quite comfortable with the outfit managing the airplane. Is that outfit hoping that with multiple owners, no owner will invest the time to determine whether the invoices that come through are legit.

The cheapest Marquis share, in an Encore, is almost $8k an hour with fuel and tax.

Does it HAVE to be a jet? Seems like a great opportunity to convert him to GA. $10k for a PPL and $50-$70k on a Bonanza/Arrow/Mooney/whatever. There! ~$70k buy-in to the "wanna see my private plane?" club.

Guys thanks a bunch for the feedback.
Funny cause my first response to him was "RUN!" too.
He has a business relationship with the other owners so he tends to trust the numbers they're feeding him and while they don't appear to be out of line, he doesn't comprehend the hidden or non-fixed costs. I tell him that when things break it can cost him tens of thousands but the partners counter that they are current and there is no deferred maintenance.
Yes, a NetJets card is much more practical. MUCH more!
Any other feedback is appreciated.

Just wait until the airplane needs a windshield or the other partners want to paint the airplane. I am not sure what it cost on a Citation but for a Lear its 80k per windshield. Jets= deep pockets, old jets= run!!!!

Flight Options has a nice jet card program as well. For someone traveling 25 hours or less per year, the jet card is a more practical choice, and you know what your costs will be in advance.

The upcoming engine OH is not deferred maintenance so they are telling the truth. The hidden costs are not what is deferred but what is coming up in the next few years. I suspect those partners are happy to bring another deep pocket to contribute 25% of those upcoming expenses.