Fractional Jet Ownership - An Overview

by : Raylam

For many, owning a private aircraft is about status-with convenience being important too. Because aircraft ownership is a sizable investment and because many wisely look before they leap, fractional ownership is very popular.

Here's how it works. With fractional ownership you purchase an "interest" in the aircraft. An aviation company, as part of its overall aircraft fleet, operates the aircraft. As a fractional owner you have use of the aircraft basically on demand. Of course, you can't use it a million times a year. With your investment comes a limit of flying hours.

If the aircraft you have bought the fractional share in isn't available at the time you request.You also pay an hourly fee for time spent in the air plus a monthly management fee that covers maintenance and administration. The number of hours you can use the aircraft depends on the fractional ownership that you buy. Most fractional jet ownership programs allow some room for negotiation. As a rule a 1/4 fractional ownership gives you 200 hours a year, 1/8th would give you 100 hours, and 1/16 th would give you 50 hours.

As a private aircraft owner, scheduling flights days and weeks in advance is a thing of the past. Once an owner, you simply pick up the phone and your plane will be ready in a few hours-where you want it and where you want to go. It's the ultimate in convenience.

The investment size will vary with the plane. Typically, fractional ownership deals are split into eighths. Today, these deals are available on just about any type of aircraft-even smaller single-engine piston planes. Fractional ownership is a great first step into the private aircraft arena.

There are very few cons to flying through a fractional jet ownership program. One downside is the ever-changing wave of life, which may affect your company's amount of travel time or your own personal use of a jet. This could result in a fairly significant financial loss, since you're typically tied in to a 5 year contract for the ownership. Most of the jet businesses also charge you a pretty hefty monthly fee, whether or not you fly, and when you incorporate fuel costs, landing fees, and other miscellaneous charges, you will spend well over what you would pay for a commercial flight. However, most people are pleased with their fractional jet ownership program and its options of comfort, schedule flexibility, and large time saving compared to commercial flights..