Fractional Jet Ownership:
I would like to examine some of the real cost associated with Fractional Jet Ownership. You will see that the cost add up very fast.
What is a Fractional Ownership?
A fractional aircraft ownership is usually a 2-5 year commitment that involves the following:
Acquisition: In a fractional aircraft ownership a part ownership is required, usually starting at 1/16 ownership of the aircraft. For example: If the aircraft costs 6 million dollars, 1/16 will equal $375,000.This will be your acquisition fee.
Maintenance: All fractional jet ownerships require a monthly maintenance fee regardless of whether or not you use the aircraft that month. The fee varies according to the aircraft and size of your ownership, but it starts at approximately $6,850 per month.
Occupied hourly rate: Every time you utilize your fractional jet you need to pay the occupied hourly fee which varies on the aircraft you have, but usually starts at $1,554 per hour.
Fractional Jet Ownership locks you to a single aircraft limiting you to that aircrafts capability.
Private jet travel is a necessity and a luxury, but paying too much in a fractional program no longer makes sense. Our next article will examine the benefits of On-Demand private jet charter versus Fractional jet ownership.