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Fractional Jet Ownership Program

Fractional jet ownership programs are a recent trend in private aviation. These programs have succeeded by attracting customers desiring the luxury and convenience of private aviation, but who cannot afford to purchase, staff, and maintain their own jet aircraft. With a fractional jet program the buyer only has to pay for a fraction of the purchase price and then is allocated the same fraction of allowed flight hours. The basic concept is simple and attractive, but there are many factors that one should consider before buying into a fractional jet program.

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Total Cost of Ownership

The total cost of ownership in a fractional jet program is often much higher than expected. On top of the purchase price of the aircraft and monthly fractional management fee are many hidden costs that can add thousands of dollars for every hour spent in flight. Moreover, when the time comes for fractional owners to sell the jet, the resale price is much lower due to the inflated number of hours that a fractional jet spends in flight. Owners may get less than half of their initial investment back after the sale of jet.

Fractional Ownership Considerations

Fractional Jet ProgramPrivate air travelers must take into account some important fractional ownership considerations. Although fractional customers have purchased a portion of a jet, they seldom, if ever, fly in the jet that they have purchased. Fractional owners are also faced with an ever-changing rotation of pilots and crew. The end result is that the flights of a fractional program bear a closer resemblance to chartered travel than they do to full aircraft owners.

Another important fractional jet ownership consideration is the high usage demand during peak travel days. Because fractional management companies are constantly striving to increase revenue without increasing overhead, many have started jet card programs. These programs allow customers who are not fractional owners to buy small amounts of travel time using the company's existing fleet of jets. While these jet card programs make private jet travel accessible to a new class of traveler, for fractional owners it means that fewer jets will be available during the important peak travel days.

Fractional Jet Ownership: A Wise Investment?

For many business and leisure travelers the convenience and luxury of a private jet makes it the ideal form of transportation. Considering the simplicity and flexibility of Jetworks International air charter service, fractional jet ownership may not be a wise investment. It is important to keep in mind that the business model of fractional ownership has not yet been proven to be profitable for the parent company. During a six-month period in 2005 the number of aircrafts among the big four fractional providers decreased while the number of fractional owners increased by more than 15%. Obviously this strategy to become profitable cannot be sustained while still providing fractional owners with the level of service that they expect from private aviation.

Many prospective fractional jet owners are unaware of how flexible, convenient, and risk-free chartered jet travel can be when it is managed by a knowledgeable company such as Jetworks. With no upfront cost, no monthly management fee, and no long-term commitment, Jetworks gives travelers the luxury and convenience of private aviation without the risk and limitations of fractional jet programs.

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