Fractional Jet Ownership Plans
To buy or not to buy? That is the question. Especially when the object you’re buying could cost you millions of dollars. If you’re considering purchasing a private jet, you have two options: fractional jet ownership or complete ownership.
Fractional jet ownership involves purchasing a portion of a private jet through a fractional jet company. You, along with other investors, share the aircraft for a set number of hours throughout the year. Withfractional jet ownership, how much you get to use the aircraft depends on the percentage that you own. A person who owns 1/8 may get to use the aircraft for 100 hours a year while a person who owns 1/16 of the aircraft may get to use it for 50 hours annually.
Owners are typically not charged for flights to their destination or flights back to base. However, they are charged an “occupied fee” which pays for fuel and includes air taxi time. Owners who own a greater percentage of the aircraft may also receive larger benefits like shorter call-out times and additional usage.
Almost all fractional jet companies lock each owner into a particular type of private jet. Depending on the contract signed, fractional jet ownership does not allow an upgrade. Some companies will also provide a jet no matter whether it has already been booked. However, some will not provide an aircraft if it has already been booked. This is a distinct disadvantage of fractional jet ownership. There are also monthly maintenance fees that are split between all owners that can cost several thousand dollars a month.
Complete jet ownership, without any shareholders, means the private jet is for your private needs. That being said, all of the costs associated with this type of jet ownership including fuel, maintenance, and upkeep will be out of your pocketbook. If you travel a lot or simply like the idea of having a private flight arranged at your convenience, then complete jet ownership may be the option for you.
Both types of ownership have their benefits and drawbacks. Fractional jet ownership doesn’t have the price tag of owning a private jet in full, but there are time constraints. Complete jet ownership is very expensive, but allows for greater convenience Think about what you need out of a private jet, before deciding which option is best for you.