The greatest benefit of a jet charter over fractional jet ownership is flexibility, whereas, with fractional ownership, you’re limited to the aircraft in your pool. Further, fractionally owned aircraft depreciate much faster than standard aircraft because they are constantly in use. When it comes to private aviation, full aircraft ownership is usually the first thing that comes to mind. There are no fractional jet acquisition costs, monthly maintenance fees, and absolutely no long term contracts. Charter companies like Stratos Jets have access to a global network of strategically located operators and more than 5,000 aircraft worldwide. If you do a fractional on a light jet – you are out of luck when you need to transport more than six people on a trip. Beyond understanding the service, however, it helps to evaluate it regarding economic feasibility. The Advantages of Fractional versus Full Ownership are many if you don't plan on using the aircraft frequently or need it on a Stand-By basis due to an unpredictable schedule. That airplane may fit your needs for a majority of trips, but chances are it won’t be the right fit for all of your trips. For one, the major tax benefits that came along with fractional ownership no longer exist. Nashville Private Jets Charter Flights air private jet charter service gives you total freedom. Benefits of Fractional Ownership: Sharing of costs, responsibilities, depreciation, and maintenance; Low costs with low utilization; Cons of Fractional Ownership: Long-term commitment; Sharing availability on heavy travel dates (if you don’t fractionally own … Ensuring crew, maintenance, insurance, catering, and other services fall under the fractional provider. Fractional Ownership. In very general terms, if you fly less than 100 hours per year, a charter might be best, and if you fly between 100 and 200 hours per year, fractional ownership would be the best option. However, the term came to popular parlance in the 1960s, with the creation of the Lear Jet. AOPA notes that the idea of fractional ownership was introduced in 1986, with the creation of NetJets. The concept is simple. But what makes it differ from your standard commercial carrier is that you don’t have to worry about any security pat-downs, long flight lines, or the endless wait for your luggage. START THE CONVERSATION. Obviously, with On-Demand jet charter, there is no long-term contract. That being said, if your goal is to get from point A to B as comfortably and inexpensively as possible, chartered trips are a great, hassle-free option—especially with the right operator. Filed Under: Air Charter, Aviation Industry, Private Jet, Private Jet Business, Private Jet Charter Tagged With: aircraft ownership, fractional ownership, private jet. So, not only is your capital investment rapidly depreciating – but you are also paying money on top of that to get rid of it. Further, oftentimes at the end of a fractional ownership contract, you are charged upwards of 7% for a “remarketing” or “reselling” fee. When compared to fractional jet ownership, chartering a jet can be much more economical solution. Are they even well-equipped or trained to deal with a fire drill situation such as this? Cold Weather Vacation Destinations from Vault Jet, Top Texas Locations for Your Next Private Jet Charter Flight, The History of Private Jet Charters & Private Flight [1903-Now], Full Ownership VS Fractional Jet Ownership VS On Demand Private Jet Charter. The demand for private jets increased year after year bringing to the market over 260 private jets worldwide. A charter won’t always be reliable enough. Owning your own aircraft can indeed seem daunting, with the cons outweighing the pros. For example, let’s compare a 1/16 th fractional share in a Hawker 400XP to a 50-hour charter card from Jets International in a Premier Light Jet. And if you have the money for it, their near-customizable features, flexibility, and service quality. Much like chartering, membership and jet card programs are best suited for individuals who want a short-term commitment and require a much lower investment than fractional ownership. Fractional ownership and charter allows for flexibility in craft and locations but does not allow for an aircraft on standby. Are Private Jets Safe As A Travel Option? And indeed, one could say it is from this particular mode that others have spawned on, making private aircraft ownership the original method to beat all others. With Vault’s On Demand program, there is no upfront capital cost. Jet card programs, in particular, are appealing because they come at a fixed rate. It was only after the influx of applications and new technologies that chartering a jet became much more accessible, which in turn grew its popularity. Fractional. Private jet charters often hold a paradox of sorts. There are approximately 400 Bombardier Challenger 300's actively flying today. And whole ownership of a jet is full of headaches and challenges that will take you away from your business and leisure time. NetJets is still the leader here, but even they are finding much more success in jet card programs rather than ownership. are either done or changing their business models drastically. Your capital would be much better off being invested in assets that will grow over a period of years – not into an asset that will depreciate rapidly over five years and which you will have to pay an additional fee to get rid of. For the most part, there are the three usual modes of private aviation you need to understand. Charter vs. How Much Does It Cost to Own a Private Jet? There are many types of fractional ownership ‘time share’ and block hours schemes available, but in reality there are few, if any, advantages to fractional ownership over private jet charter. That said, fractional ownership looks to combine the strengths of the other two modes, such as the book-and-go nature of chartered flights, along with the stability and availability of a private aircraft. As the name suggests, with fractional jet ownership, you own a percentage of an aircraft with a group of other people. If you are paying so much money up front, you should be able to use the plane whenever you want. Without taking tax benefits into account, the cost-per-hour of flying with Jets International is more than $1,100 less expensive. Private Jet Charter Considerations By nature of the business model, private jet charter offers an unpredictable travel experience—with an unfamiliar aircraft and crew for each flight—and is usually best suited for those who travel infrequently. Being less expensive means that you can’t necessarily lock in or customize the service, much like your typical commercial flight. Fractional ownership companies such as Netjets exist, but they essentially function and offer flights like charter operations and must be certified to do … Your email address will not be published. 3 – Cost. Does the company provide a replacement at cost? Some private jet customers will compare the price for each flight through their fractional ownership, jet card and on the private jet charter marketplace. This arrangement means that the number of hours you get to fly depends on how significant your fraction is. Aside from the cash, you are already out, there is almost always a penalty for trying to get out early. The typical approach is to espouse fractional ownership as the ideal solution if your annual flying ranges between 50 and 400 hours. Does the company you contracted through provide a suitable replacement aircraft for you at the same hourly rate you are locked in on with the fractional deal? What happens if your aircraft is down for maintenance or even worse has a last minute mechanical issue the day prior to or day of your trip? Fractional Ownership is the perfect solution. The PJS … Private Jet Options: Jet Charters, Fractional Ownership, or Full. After looking through the different modes, you might have a faint idea of what each method has to offer. jet membership programs, and aircraft charter, the fractional aircraft ownership model is becoming increasingly popular with both leisure and business travelers. The likely solution is going to be on-demand charter or jet cards. Buying a whole plane can prove beneficial if you travel on a regular basis, or for companies that need to move to remote locations quickly. In some cases, you can even cancel your … However, if you’d prefer to travel solo or are part of a small group of visiting folks who might not need to travel out too often, you might balk at the million-dollar costs and reconsider whether you needed the extra perks in the first place. This in mind, below is a table of the amounting charges per mode, according to the financial feasibility stats we explored beforehand: Now, assuming you’ll be flying privately for the next 5 years for business, your cost-to-hours flown will look something like this: With all the potential private aviation possibilities, it’s easy to be overwhelmed by all the options, even as you consider them. In return, however, you get to lessen your other expenses since you share them with other co-owners, and you get to schedule multiple, simultaneous flights since you co-own the fleet. by Vault Aviation | Jul 1, 2018 | Blog | 0 comments. If you require multiple jets departing from different locations on the same day, such as 3 regional headquarters, owning a jet may not a viable option compared to chartering a jet. Additionally, when you charter an aircraft, you’ll avoid the significant acquisition cost, monthly management fees varying monthly fuel rate, and a several year-long contract that comes along with fractional ownership… Ad Hoc Charter Vs Fractional Ownership. For example, a few months ago we had a client booked on a charter flight – but the night before the trip an airport employee backed a piece of equipment into the plane, rupturing the wing and putting the plane out of service for weeks on end. Over the years the demand for private jets has increased from having 260 jets worldwide in the 80's to producing over 260 jets … Fractional Aircraft is a common term for fractional ownership of aircraft where multiple owners share the costs of purchasing, leasing and operating the aircraft. The Bombardier Challenger 300 SuperMid Jet was first manufactured in 2003 and can be configured to carry a maximum of 8 passengers, 3439 miles at a typical cruising speed of 514 mph.The Bombardier Challenger 300 was produced between 2003 and 2014. Stratos vs. You want to fly by private jet whenever you like. it would take years of extremely frequent flying to even reach the same amount of money that is being spent on the fractional ownership. In the end, sometimes the expense is worth paying for if it suits your needs best. Redefining The Private Jet Charter Industry, April 16, 2018 By Pam Musni Leave a Comment. The Bombardier Challenger 300 is certified to fly with 2 crew … In terms of cost, both the initial acquisition cost and the ongoing cost per flight hour, which includes fixed operations/maintenance costs, need to be considered. To make things more evident, however, let’s use a financial model to examine each type side-by-side. The first step to proper discernment is understanding what you’re getting into. Fractional ownership is best for those who typically utilize air travel for 15 or more trips per year and allows you to buy or lease a share in either a Phenom 300 or Phenom 100, the best light jets in private aviation. That said, this article will delve into each mode in three parts: overview, advantages and disadvantages, and financial feasibility. With On Demand charter, it would take years of extremely frequent flying to even reach the same amount of money that is being spent on the fractional ownership. NetJets owns and operates the largest, most diverse fleet of private jets in the world, offering fractional jet ownership, private jet lease, and jet card programs. There is no risk of not having the aircraft available. Commercial programs for large aircraft include NetJets, Flexjet, PlaneSense, and AirSprint.. With fractional jets, customers (referred to as "owners") buy a "share" of an aircraft, rather than an entire aircraft. Making it more complicated, the breadth of various solutions has been changing. Fractional jet ownership was created in the late 80's when basically the only way to fly privately was purchasing your own jet. What happens if you really need the aircraft for an important meeting that has just popped up but the other owners are using the plane on those dates? On the other side of the spectrum, whole ownership provides complete control but doesn’t make sense for many private travelers. Consider the fees the owner of a fractional must pay: in addition to the purchase of the share in the aircraft, there are also monthly maintenance and operating fees, along with insurance. Fractional Vs. The owners can typically use that aircraft or a comparable aircraft in the aviation company’s fleet on demand for a predetermined number of hours annually. From our experience – most don’t, and clients can be left hung out to dry. Ownership - Full Version - Duration: 13:57. Compare : News: Subscribe: Now more than ever, private aviation is the safest choice. And most of the time, you get to leave as quickly as possible. Most of the big boys in that sector (NetJets, FlexJet, Flight Options, etc.) With a fractional aircraft program, the program management company provides its expertise to the fractional owners.