Fractional jet ownership allows multiple people or businesses to share ownership and the cost of private jets. Although the allure of private jet ownership is undeniable, the price can sometimes be off-putting. Individuals and companies must compare the options between fractional jet ownership or private jet charter, whether for business or pleasure. While both provide private jet access, they offer advantages and disadvantages that make the decision process more challenging. Allow this information to help you make an informed decision.

Fractional Jet Ownership

Fractional jet ownership was first introduced in 1986 by Richard Santulli, a mathematical Wall Street genius who developed a mathematical model to help people own a portion of a private jet. His foundational work best fractional jet program to date.

Fractional jet ownership allows individuals to own portions of private jets, ranging from 1/16 to 1/2. The share purchase grants individuals access to a specific number of hours annually, depending on the share. This arrangement offers the following advantages and disadvantages:

Ownership and Asset Value

Purchasing a jet share means owning a portion of the private jet. Jet value can appreciate and depreciate. Owners have equity in the jet and can sell their share and exit the program anytime.

Availability Guarantee

Fractional ownership guarantees access at specific times. Owners typically have access from four to ten hours. They can rest assured that the private jet will be available when needed.

Operational Control

Owners have more control over the jet's configuration, including the interior and personalized services. Customization options are more readily available than chartered jets.

Cost and Long-Term Commitments

Fractional ownership involves upfront capital and money for maintenance, repairs, and operational costs. The initial costs are high but much less than singular ownership and cost less per hour than charter jets. Fractional owners may be able to take advantage of depreciation to help with their tax bills.

Buying a jet share usually requires a multi-year contract, often ranging from five to seven years. Shares are best for individuals and businesses with a solid history of predictable travel.

It is crucial to weigh the advantages and disadvantages before deciding on jet ownership. While there is a reduced cost, there are also limitations that may prove challenging.

Private Jet Chartering

Private jet chartering offers greater flexibility and is especially ideal for those who only need jet access sporadically. You can choose the jet that best serves your needs without committing to ownership. Consider the following advantages and disadvantages.

• There is no ownership responsibility, so you do not have to worry about maintenance, repairs, or management costs.
• You can select the aircraft size and specs that meet your needs and change aircraft as needed.
• Instead of a significant upfront cost, you can pay as you go, making jet usage more affordable.
• Access is not guaranteed, making it more challenging to make travel plans.
• Customization options are not available.

Which Is Right For You?

When deciding between fractional ownership and chartering, multiple things must be considered. Frequent flyers will likely determine that fractional ownership gives them greater access and helps reduce travel costs. Those who fly less may prefer a pay-as-you-go option like jet chartering. It is vital to research and weigh the options carefully. You can make an informed decision by evaluating your travel preferences and budget.