The title of this column should be: “How to Buy a Little Piece of a Private Jet and Still Fly Comfortably.”
If you have a timeshare in a condo, perhaps as a vacation getaway, you already understand fractional jet ownership. Like a condo, fractional ownership falls between full ownership (buying the condo outright) and chartering a private jet (renting a hotel room). Fractional ownership offers multiple benefits, ranging from tax advantages to eliminating the burdens of full ownership.
Many providers offer fractional private jet ownership, with shares as small as 1/16th of a jet up to an entire plane. As a benchmark, fractionals calculate “occupied hours” at 800 per year, so a 10% share would give you 80 hours of flying time. Here’s what you need to know:
Cost: First, there’s the initial cost of purchasing a fractional share. Then, you’ll have a monthly charge covering crew salaries, insurance, hangar rent and other expenses. Additionally, consider the hourly rates for the aircraft, which include fuel, maintenance and related costs.
Time Basis: Some programs operate hourly, offering a set number of hours for use, while others are based on days with unlimited hours.
Crew: Some providers dedicate a specific flight crew (pilots and cabin crew) to each jet, so you feel like you’re the owner when you fly. Flight Restrictions: Certain providers allow unrestricted travel within a day, facilitating multiple destinations without extra charges. This works when you need to pick up or drop off guests along the way. Just remember, most crews have a 14-hour duty day.
Amenities: Part of the private jet experience is cabin service. Check what’s included—commercial airlines provide peanuts and soft drinks; while you might not need Dom Perignon and caviar, see what your fractional service provides or can provide.
Aircraft Size: For a group of six to eight people, you don’t need a Boeing 757. If you have a share in a jet seating eight people, you can’t take 20 of your neighbors to the Super Bowl. Luckily, many providers (check beforehand) offer the flexibility to use larger or smaller jets depending on your mission.
Runways: The capability of private jets varies with runway length. While most can land on an 8000-foot commercial runway in Aspen, shorter strips like St. Barths’ 2119-foot runway may require specific aircraft like the Cessna Grand Caravan or the Pilatus PC-24.
Contract Length: Read the fine print. Most fractional providers use five-year contracts, so check if they offer “early outs” or extensions if you need more hours.
Who’s Plane? Although you purchase a portion of a new aircraft, it joins your provider’s fleet of similar planes, which vary in age and features. Busy periods may mean upgrading to a larger aircraft, akin to Hertz offering a sporty Mercedes when out of four-door Fords.
Residual Resale Value: Consider the expected value of your aircraft share at the contract’s end, similar to a car lease.
Taxes: Yes, you are an aircraft owner so it’s time to talk to your attorney and your accountant.
Management Fee: Providers charge a management fee, varying based on your share size.
Unused Hours: Depending on the provider, you may use more hours than allotted by dipping into the next year’s allocation or rolling over unused hours. Understand any associated costs and restrictions.
Benefits: Flexibility is the hallmark of fractional ownership. Unlike sole ownership, fractional allows trading up or down in aircraft size and managing multiple aircraft to suit diverse travel needs.
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