Fractional Ownership Helps Justify Private Aircraft

Private jet membership or fractional ownership is a relatively recent development in aviation ownership. The cost of purchasing and maintaining aircraft is expensive, even among the richest of people. Justifying private aircraft is a difficult fiscal argument to make, but fractional ownership can help make the case easier. There are differing forms of fractional ownership, essentially based upon the type of aircraft.

Fractional Jets

Jet aircraft is very expensive with initial purchase price running in the tens of millions, and then adding in maintenance, hangar fees, staff, the annual costs can be phenomenal also. Purchasing a fractional ownership allows one to buy into part ownership of an aircraft, spreading the cost of ownership. However, the real value of fractional jet ownership is not the aircraft one purchases, but that most programs allow members to fly on the entire fleet of jet aircraft in its stable. There are fees involved, but they are much less than a simple private jet rental. Most programs can have an aircraft available nationwide in the continental US within three to seven hours notice.

Fractional Airplane

Even simple prop planes can be an expensive hobby. Sharing the purchase cost and subsequent maintenance costs helps keep it more affordable. Unlike fractional jet ownership programs, fractional airplane ownership is usually just as it sounds, a pool of owners own and fly one plane. The availability of the plane is first come first serve. Each owner must supply their own pilot and usually have to supply their own fuel costs for each flight. Maintenance, insurance, and hangars fees are shared among owners.

Jet Cards

Though not necessarily a fractional ownership program, jet cards operate a lot like fractional jet ownership but without the ownership. Jet cards are prepaid debit cards where flight time is deducted at an established hourly rate but much cheaper than private plane charter. An entire fleet of private jets will be available for use with the cards. Usual notice times are available for jet availability. The value of jet cards is that there will not be the initial ownership cost when joining a program. Then a possible plus is the cards are prepaid. So, flight time is simply deducted from the balance remaining on the card, the flight has already been paid.

Deciding which form of fractional ownership is best depends on usage. If flights are recreational and one is a pilot, then a fractional airplane is in order. If flights are for business and flights national then a jet card or fractional ownership is order. Regardless if which form one chooses, making the financial case for private aviation is easier with fractional ownership.