Why not fractional ownership?

Fractional ownership is a great idea - for the folks who thought it up.  But does it really cost less than buying a complete aircraft?  And what about the operating costs for a fractional share?  Are they less?  The answers to these questions might surprise you.    The fact is that fractional ownership is about selling aircraft – not providing service to clients.  The fact is that fractional ownership companies buy more new business aircraft than anyone else, more than all the other buyers combined.  And they have to sell shares in them to someone.  Here are some more facts.

FACT 1) If you plan to fly 200 hours or more per year, a pre-owned business jet of the same class will nearly always cost the same or less than an equivalent fractional share.     In some cases it can cost much less.  

FACT 2) Between monthly management fees and occupied hourly fees, a fractional share in an aircraft will nearly always cost more to operate on a per-hour basis than total ownership in the same class of pre-owned aircraft.  

FACT 3) Total ownership of a pre-owned aircraft allows you to use it for revenue-generating charter when you aren’t using the aircraft – significantly offsetting your operating costs.  Fractional ownership does not allow you this flexibility.  You pay the maximum cost.

FACT 4) Because most fractional shares are bought in new aircraft – over time, the share price will probably not appreciate.  Prices for pre-owned aircraft are at a 10 year low.    As the economy recovers, so will the prices for pre-owned aircraft.  It is possible for you to buy a pre-owned business jet today, enjoy the benefits of it for 4-5 years and then sell it – at a profit!

FACT 5) Because most fractional companies schedule their aircraft and crews so tightly, you will rarely fly on the same aircraft or with the same crew twice.  In fact, it is possible that you can buy a fractional share in a certain aircraft and never fly on it!  And what about security with new faces on every trip?  Nothing takes the place of flying your aircraft with a crew you know and trust.  

FACT 6) You lose nothing buying a pre-owned aircraft instead of a new one, except the huge acquisition cost.  The aircraft will look like new: you can find pre-owned aircraft with brand-new exterior paint and interior packages – or have the aircraft painted to your taste and the interior of your choice installed.  The aircraft will fly like new: nearly every business aircraft is on a computerized maintenance programs for components and engines so that every part is meticulously maintained.  There is absolutely nothing left to chance.

Call or email us today for cost comparisons of fractional versus total ownership.  In nearly all cases we can FEDEX a comparison package to you within 24 hours.  We can also usually email you a preliminary package in Microsoft Excel format the same day.  

Don’t consider buying a fractional share without talking to us first!