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Fractional Ownership

Fractional aircraft ownership is growing in popularity as it's a more economical way to enjoy the benefits of jet ownership or private jet leasing.

This is hands-down the neatest way to travel, but is it worth it? We'll explore the costs, benefits, and disadvantages. 

Fractional Aircraft and Jet Ownership Costs

For this we'll profile NetJets.  There are many others to choose from, but this is just to give you an idea of the costs. 

Acquisition Cost - This is basically the start-up cost of the program. These can typically be purchased in 1/8th or 1/16th fractions.  The prices are determined by the size/class of the airplane.  The NetJets 1/8th for a small plane currently costs just over $400,000 for a 5 year management pricing lock. After the 5 years, the management fee goes to the market rate at the time.

Monthly Management Fees - This monthly fee covers the incidentals and indirect costs associated with have a plane.  Including pilot training, salaries, owner services, plane service, hangar fees, and insurance.

Hourly Fees - The occupied hourly fees cover the direct costs with the flight.  This includes fuel, maintenance, catering, and landing fees.  They also charge time for taxi time...

Other Fees - This includes fuel surcharges, federal excise taxes, and international fees.

Fractional Ownership Benefits

  • Luxury travel
  • All the benefits of full jet ownership or leasing without the full costs
  • Some ownership programs allow as little as 10 hours notice
  • Personal service

Fractional Ownership Disadvantages

  • High startup costs
  • Monthly costs even when not in use
  • Depending on the ownership program - might be plane specific
  • Limited ability to upgrade or downgrade

Things to look out for when considering fractional jet ownership-

  • Plane availability - Guaranteed?
  • Pilot training? Does pilot fly only the one type?
  • International flight availability?
  • Company strength and background.
  • Is the fraction transferable?

If you can afford it - this is the ultimate in air travel.

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