Flying » Fractional Jet Ownership

April 1, 2008
Ferry fees have always been part of fractional flying. Now, however, some fractional providers have made changes to their programs that substantially reduce-if not eliminate-the fees for their owners. As a result, these owners enjoy expanded ferry-fee-free travel horizons, and the other fractional providers' may find they need to respond in kind.
February 1, 2008
There are significant differences among the major fractional programs, said o
The fractional share market "has passed its period of rapid growth," according to a report prepared by consulting firm Velocity Group for XOJet, a company that sells flight time in hourly increments. Fractional shareholder growth averaged 2.2 percent per year from 2003 to 2006, but the fractional share fleet actually shrunk a bit, according to Velocity.
February 1, 2008
One provision generally prohibits you from assigning your share, significantl
Black's Law Dictionary defines "boilerplate" in part as "standard language in a legal document." In fractional contracts, plenty of provisions appear to be just that, and the response from your salesperson when asked about such provisions is likely to be, "Oh, don't worry. That's just boilerplate."
January 7, 2008
Fuel charges now substantially affect the cost of fractional flying
Fractional ownership became popular in the 1990s and now is a staple on the private air travel menu of options. With fractional, you purchase a partial interest in an aircraft that an aviation company operates. Along with other owners, you have the right to use any comparable aircraft in the company's fleet, on demand, for a predetermined number of hours each year.
December 1, 2007
Considering that the fractional-aircraft field was borne of a new business model and has been around for more than 20 years, it is perhaps surprising that the basic structure remains fundamentally unchanged: you purchase a share of an aircraft from the provider at a premium; you pay management fees, hourly rates and fuel surcharges; and at the end of your contract, you sell your share back to t
October 1, 2007
In the 1990s, a booming economy created fertile ground for fractional flying, a new form of private air travel that providers touted as having predictable costs and being much less expensive than full ownership.
August 1, 2007
The fractional aircraft business is fascinating, in part because it is founded upon several myths, partial-truths and artificial constructs that are both pleasing for owners and profitable for providers. In many ways, fractional flying is more akin to using an executive airline than to owning a whole aircraft.
June 1, 2007
Fractional owners opt out of their contracts early for many reasons. You may have sold an out-of-town business and so charter or a jet card may better serve your reduced needs. Maybe you're flying  more than you expected and it makes sense for you to purchase a whole aircraft. Perhaps you want to share flights with business associates or friends, but they all belong to a different program.
April 1, 2007
“We found that customers want greater simplicity in contract terms and more t
While the major fractional providers are still selling plenty of business-jet shares, recent reports indicate that they're also repurchasing existing shares at a rapid rate. As a result, net growth (sales minus repurchases) is at the lowest level in years.
February 1, 2007
Timmy (not his real name) is a four-year-old cancer patient. He cannot fly commercially due to his condition. But he must travel several times a year for treatment between his California home and Duke University Hospital in Raleigh-Durham, N.C.

Pages

 

Quote/Unquote

“[New billionaires in fast-growing countries] have to buy longer-range airplanes. If you’re flying from Mongolia to Nigeria, it’s either a three-day journey flying commercial or a nine-hour flight on your jet.”

-Steve Varsano