What Is Fractional Jet Ownership?
Fractional jet ownership can be a complex issue to understand. In the simplest terms, fractional jet ownership is just as it sounds: owning a fraction of a private jet.
This is beneficial for those who don’t want to spend millions of dollars on a private jet that may or may not be used all the time. Fractional jet ownership is effectively time-sharing a private airplane.
Owners typically can purchase a portion of the aircraft and have a set number of hours they can use the plane. Fractional aircraft ownership program packages vary with the carrier, but most owners purchase around 1/16 to 1/8 of the aircraft. This sets the usage between 50 and 100 hours for each owner. The greater the percentage of the aircraft owned by the person, the more the person gets to use the aircraft.
There are several carriers in the marketplace that allow fractional jet owners to purchase less than 1/16 of the aircraft, however, the allowed usage time decreases and other benefits (such as upgrades) are lost.
Investing money into fractional aircraft ownership is more practical for businesses or private individuals that want the luxury of private air travel without the hefty price tag. Owning a fraction of a jet costs a few hundred thousand dollars (depending on the percentage owned) and has all the convenience of a private jet.
Some jet carriers only need a minimum of four hours call-out time to send an aircraft to the owner (depending on the percentage he or she owns). Fractional jet owners are generally not charged anything when the flight is flying to a destination to reach an owner or when the aircraft has dropped off the owner and is flying back to base.
However, owners are charged an, “occupied hourly fee” which typically is used to cover fuel costs. Fractional jet owners are also charged monthly maintenance costs when they choose fractional jet ownership. This varies depending on the type of plane and contract with the carrier. However, the cost is shared by all owners of the aircraft, offsetting the potential amount that could be paid had the plane been wholly owned.
Fractional jet ownership is a benefit for those who are tired of the long lines, lost baggage, and cranky in-flight passengers that comes along with commercial travel. In fact, the money it saves with time alone is one of the major reasons individuals and businesses choose fractional jet ownership.