Summary Fractional ownership allows sharing of costs among multiple owners, providing flexibility in terms of how many shares can be purchased. Commitment typically ranges from 3 to 10 years, with management and hourly fees increasing based on the number of shares owned. Fractional owners may experience the advantage of tax benefits, while also facing the drawback of lower residual resale value and varying aircraft availability.
When considering the need for private jet travel, there are many things to consider in terms of chartering an aircraft, fractional ownership or buying a private jet outright. In a changing world, where private jets have become more accessible than ever before, there are a number of options available. Here we take a look at the details of fractional ownership and what questions potential owners might have, before taking the leap.
What is fractional ownership? Fractional ownership is where an aircraft's purchase and operating costs are shared between a number of owners. Flexjet and NetJets are two examples of private jet operators that offer this. It meets the needs of those who fly regularly but don't want the cost or stress of full aircraft ownership.
Typically, an aircraft is divided up into 16 shares, so an 'owner' can buy one 16th share or eight shares, or anything in between. There is no limit on the number of shares that can be bought. How many hours can I fly, and what's the commitment? In most cases, a single aircraft is sold to multiple owners.