Private Jet Fractional Ownership
Fractional Ownership of a private jet is exactly what it says. There are a number of companies that will sell you from a half share down to a one sixteenth share of a specific aircraft depending on the size of the plane.
There are generally four sizes of private jet, Light, Mid , Heavy and Long range and each category gets bigger in size and longer in range.
These companies normally have large fleets of aircraft and although you will own a share in a particular tail number you will not necessarily fly on that plane. You will fly on the plane that the operator wants to use which is the most suitable and cost effective for the whole operation.
Share prices start from around $500k for a one sixteenth share of a light jet capable of carrying up to six passengers for flights up to about 2.5 hours. This share allows you to fly up to 50 occupied flight hours per year for a contract period of three or five years. In addition to your purchase cost you will pay a monthly management fee which covers your share of the annual fixed costs which equates to around £10,000 per month and then you pay your direct flight costs which are charged at around £2400 for every hour that you actually fly in the plane from take off to landing plus 0.1 of an hour at each end for taxiing.
All told, for a six seat small jet, you will pay around £4,500 to £5,000 (in addition to your initial purchase) per flight hour for a one sixteenth share which gives you 50 occupied flight hours. Remember an “Occupied Flight Hour” is the time you spend in the aircraft only from take off to landing plus 0.1 at each end for taxiing. 50 occupied flight hours will give you approximately 20 one way flights from London to Palma Mallorca or 10 return flights.
This type of private jet flying is really only suited to those who need a jet on a regular basis at short notice from many different locations or regularly from remote locations where there are very few charter planes available and usually few airports with long enough runways for a jet to land such as Northern Ireland, Northern Scotland, Southern Italy, etc.
All fractional ownership contracts are based on the concept of paying for “Occupied Flight Hours” The occupied hour plan is also only suitable for one way flights. ( a one way flight is deemed to be a flight for a trip lasting more than two nights).
Once you have purchased your share you are guaranteed a plane of the type you have purchased or better as long as you give 24 hours notice. Your plane is guaranteed to pick you up from any suitable airport in mainland Europe. A similar programme operates within the USA.
Although Fractional Ownership is expensive compared to Ad-Hoc charter it does have its place for many people who fly regularly from many different locations and want the comfort of a consistent and high level of service with guarantees on cost and availability.
If you are thinking of Fractional Ownership our recommendation would be to buy the smallest share possible of the appropriate plane for the majority of your trips. You can then use ad-hoc charter of a private jet to fly the round trips ( all trips lasting no more than 2 nights and returning to the original departure location). Our flight services department will be happy to advise you of the most suitable fractional ownership deals available.
Alternatively if you have an idea of your movements for a period of 3 months then you are advised to get a quotation for ad-hoc charter in order to compare the overall deal before signing up to a fractional ownership contract. Our flight services department will be happy to give you an accurate and detailed comparison proposal free of charge.
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