Fractional ownership of jets has become more prevalent in recent years as a way to own and fly on a private jet and avoid the commitment and expense of owning an aircraft outright. There are several options to pick for private travel, each with its benefits and drawbacks.
To help you make an informed decision about whether fractional ownership is right for you, we’ve put together a blog outlining the ins and outs of fractional ownership of jets, as well as the advantages and disadvantages of this type of ownership.
If you’ve ever thought about owning a private jet, buying a jet card membership, or if you’re simply curious about how fractional ownership works, read on for more information.
Fractional ownership of a jet put simply, means you are a partial owner of and own a share of the aircraft, and you have the ability to use it for a certain number of hours every year.
Your fractional ownership company will handle all of the details surrounding the operation and maintenance of the jet, so you can simply enjoy the benefits of owning a private jet without any of the hassles like finding a pilot and crew and ensuring the upkeep is done. With a fractional jet ownership program, all of this is done for you.
Some companies like SkyShare USA go even further by assigning you a personal concierge, to handle all of your travel arrangements from hotel or resort bookings, to car rentals or limo service.
There are many advantages to fractional ownership of a jet, including:
Fractional ownership allows people to own a private jet at a fraction of the cost of full aircraft ownership. When you fractionally own a jet, you’re only responsible for a portion of the purchase price, as well as an even share of the ongoing operating and maintenance costs.
Fractional aircraft ownership gives you the flexibility to fly when and where you want. With a fractional ownership program, you can book your flight on short notice and enjoy the convenience of flying private.
By joining a shared jet ownership program, you’ll get to enjoy all the perks of owning a jet without any of the headaches. When you fractionally own a jet, you don’t have to worry about the day-to-day details of operating and maintaining the aircraft. That’s all taken care of by your fractional ownership company.
Also, be sure to compare the costs of fractional ownership companies. Everything should be upfront and transparent so be sure to watch out for companies that will not tell you all of the costs, especially on their websites, and try to lure you in with great pictures and little information without being contacted.
Of course, there are also some disadvantages to fractional aircraft ownership to think about like having to share your jet with other owners, which is the most obvious factor.
You may have to pay “deadhead or repositioning” fees. Some fractional ownership programs charge fees for empty legs or flights where there are no passengers on board, however, most programs offer the offset of these fees by booking your flight in enough time for the company to sell that empty leg flight.
Some fractional ownership programs have “right of first refusal” clauses, which means if you decide you want to cancel early, you may be required to sell your share back to the fractional ownership company before you can sell it on your own to someone else.
With shared aircraft, it’s possible your jet may not be available when you want it. Because you’ll be sharing your jet with other owners, it may not always be available when you want to fly however most fractional companies have additional jets in their fleet to accommodate your travel plans.
You’ll have to pay monthly management fees. Most fractional ownership programs charge monthly management fees in addition to the initial purchase price and ongoing operating costs.
An empty leg, also sometimes called a deadhead flight, is when an aircraft flies without any passengers on board. This can happen when the plane is flying back to its home base after dropping off passengers at their destination or coming to pick them up from a destination.
Yes, there are some tax benefits to fractional ownership of jets. Because you’re only responsible for a portion of the purchase price and operating costs, you can deduct a portion of those costs from your taxes.
Additionally, if you use your jet for business purposes, you may be able to deduct the cost of your fractional ownership interest on your business taxes. Consult with a tax advisor to learn more about the specific tax benefits of fractional jet ownership.
When you’re considering a fractional ownership program, there are a few things to keep in mind, including:
By keeping these things in mind, you can be sure to find the fractional ownership program that’s right for you.
Before you buy into a fractional program, these are questions we recommend you ask:
When it comes to private aviation, there are a few different ways to fly, including fractional ownership of jets and jet cards. But which is right for you? Let’s take a look at the difference between fractional ownership of jets and jet cards:
Fractional ownership of jets: With fractional ownership of jets, you own a share of an airplane, and you have access to that airplane for a set number of hours each year.
Jet cards: With a jet card, you purchase a set number of hours on a specific type of airplane. The advantage of a jet card is most jet card companies keep a fleet of planes on hand to accommodate high demand during certain travel times. But with high overhead, comes higher prices.
So, which is right for you? It depends on your specific needs and preferences. If you want the flexibility to fly different types of airplanes, a jet card may be the better option. But if you want to own a share of an airplane, fractional ownership of jets may be the better choice.
Fractional ownership of jets is a great way to own a share of an airplane and have access to that airplane for a set number of hours each year. Jet cards can have disadvantages also. So, if you want the flexibility to fly different types of jets, a jet card may be the better option. Jet card programs are like leasing a car, when the contract is done you walk away with nothing tangible. So if you want to own a share of an airplane, which gives you a return at the end of the contract and the jet is sold, fractional ownership of jets may be the better choice.
Fractional ownership of jets can be a great way to enjoy the benefits of owning a private jet without the hassle and expense of full ownership. But it’s important to understand the pros and cons before you decide to fractionally own a jet.
We hope this article has helped you have a better understanding of the fractional ownership of jets and the advantages and disadvantages to consider. Contact us if you have any questions or would like to learn more about our fractional ownership program.
