Fractional aircraft ownership is a popular option for those looking to fly privately without the high costs of full aircraft ownership. It allows individuals or companies to purchase a fraction of an aircraft, and then use it for a specific number of flight hours per year.
In a fractional aircraft ownership program, a group of individuals or companies purchase a share of an aircraft together, and then pay a monthly management fee to cover the costs of maintenance, insurance, and other expenses. The aircraft is then managed and operated by a professional management company, which provides a full-service experience, including flight planning, scheduling, and maintenance.
Fractional aircraft ownership can be a cost-effective solution for those who fly frequently, but not enough to justify the expense of full aircraft ownership. With fractional ownership, your cost to fly are limited to the direct operating costs of the aircraft, and your on-going fixed and variable costs are shared across the pool of fractional owners of the aircraft, and you don’t have to worry about the costs of maintaining and storing the aircraft.
Private Jet Fractional Ownership Costs
There are some fractional jet ownership costs, however, and before you become a fractional owner you should know the full cost of fractional jet ownership. The following are expenses that you can expect to pay as a part owner. Your fees will vary depending on many things, including the size of the jet (light jet, midsize, large) and share size. Private aviation can be expensive, so it’s important to get into fractional ownership being fully aware of the long term costs.
Initial purchase price
When you purchase a fractional aircraft share, you’ll need to pay an initial purchase price. This price will vary depending on the type of aircraft you’re buying and the size of the share you’re purchasing.
Monthly management fee
Most fractional aircraft ownership programs come with a monthly management fee. This fee covers the cost of maintaining and managing the aircraft, including pilot and crew salaries, fuel, and insurance.
Hourly usage fee
You’ll also be charged an hourly usage fee every time you fly. The hourly usage fee will vary depending on the type of aircraft you’re flying and the number of hours you fly.
If you want to fly to a destination that the aircraft isn’t already located at, you may be charged a repositioning fee. This fee covers the cost of moving the aircraft to your desired location.
Maintenance and repairs
As with any aircraft, your fractional aircraft will require regular maintenance and repairs. These costs can add up over time, so it’s important to factor them into your budget.
Fractional aircraft ownership also requires insurance, which can be substantial cost, you will need to pay for the liability and hull insurance that covers the aircraft.
If you decide to terminate your fractional ownership, you may be required to pay termination fees.
Ownership vs Charter: Which is Right For You?
It’s important to note that these costs can vary depending on the fractional aircraft ownership program you choose. Be sure to do your research and compare different programs to find the one that best fits your needs and budget. With a charter, there is no on-going expense. Simply pay as you go. You also have flexibility in choosing the size and type of plane for every charter. Which can be a big benefit when traveling longer or shorter distances. For short distances with only a few passengers, charter can allow you to choose an economical option. If you’re traveling cross country, you can choose a larger jet that can go non-stop. Additionally, it’s a good idea to consult with a financial advisor to make sure fractional aircraft ownership is the right choice for you and understand the expenses related to it.
With these expenses in mind, you can have a better idea of whether you want to buy into ownership of private jet travel, or to stick with private jet charter companies for your air travel needs.
In conclusion, fractional aircraft ownership can be a great option for those looking to fly privately without the high costs of full aircraft ownership. However, it’s important to be aware of the expenses related to private jet fractional ownership, costs including the initial purchase price, monthly management fee, hourly usage fee, repositioning fees, maintenance and repairs, insurance, and termination fees.
By understanding these fractional plane ownership costs, you can make an informed decision about whether fractional aircraft ownership is the right choice for you.