Private Aircraft Ownership
Like the idea of having a private jet at your beck and call without investing millions of dollars? Consider fractional aircraft ownership (or fractional jet ownership) as an air travel option. Fractional aircraft ownership involves purchasing a private jet collectively with other investors.
Everyone then shares the aircraft and its use is determined by the percentage (or fraction) owned by each individual. In other words, the fractional jet owner who purchased 1/4 of the aircraft is allotted more time to use the jet versus the owner who purchased 1/8. Those who have a greater stake are also given more options (depending on the contract and carrier) such as shorter call-out times.
Most fractional jet owners are locked into one type of aircraft. There are a few carriers that allow owners to upgrade to another plane if needed. However, this is not typical and is generally allowed for owners who own 1/4 or more. Most fractional jet owners will generally purchase 1/8 to 1/16 of an aircraft. This allots 100 to 50 hours of annual usage respectively. Carriers should guarantee an aircraft regardless if another investor has previously booked it for the same day.
When this occurs, the provider will generally use another aircraft from its fleet or charter an aircraft from another location. A private jet should be provided nonetheless. The cost of fractional aircraft ownership depends greatly on the type of aircraft and the terms of the agreement. Expect to pay several hundred thousand dollars when investing in fractional jet ownership.
There are also monthly maintenance fees, which can cost several thousand dollars a month as well. Fractional jet owners are charged a fee whenever they occupy the plane, which can be several hundred to a few thousand dollars an hour.
Fuel is sometimes calculated into this fee, but if it is charged separately it is usually calculated by the current world market price. While fractional aircraft owners are not charged for the flight to their pick-up point or the flight after departure back to base, they will be charged for the time they occupy the plane including air-taxi time.
Fractional aircraft ownership is an excellent option for companies that don’t want to spend millions of dollars on a private jet (and maintenance), but enjoy the comfort of a private flight.
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