Fractional Jet Ownership CostFactional jet operating costs
What does fractional jet ownership cost?
Depending on it and it will vary greatly as the gear will vary - with netjets as an example you can "own" (on hard copy; in reality you'll be flying in many different planes outside the plane where your name is among those on the title), from 6ish% - 100% of a $3MM Citation Encore to a $40MM+ Gulfstream or Global and many in between.
They will then be charged a one-month administration charge and an hours charge for the use of the airplane, which in turn (very) vary. Generally speaking, fractional ownership is one of the more costly ways to travel privately. If airplanes were really pricey to buy, it made perfect business, the most popular airplanes were difficult to get, and the petrol was 2-3 times more than now.
Like any good deal, Nettjets has grown and is no longer just fractional ownership (this proportion of their deal is shrinking annually) and is offering every programme under the sun to let you privately air.
Fractional Jet Ownership's two largest actors have different approach to the jet ticketing market.
Whilst the overwhelming bulk of jet charts are sold by brokerage houses, two of the best known jet chart brands - NetJets and Flexjet - are in fact fractional jet carriers whose main activity is to sell fractional shareholdings and leasing contracts for whole planes. Fractional ownership means a three to ten year engagement, while at Jetcards we' ve seen programmes with engagements of only 10 hrs and $25,000.
A general guideline is that jet tickets can be good if you are flying 10 to 100 hrs per year or even more if you are against possession for various purposes. Factional ownership programmes usually begin at 50hrs, which is a 1/16th proportion, but typical for individual and family travellers flying between 100 and 400hrs per year.
However, you do not have to buy or rent a fraction of the shares to be able to travel with a fractional number. There are two main grounds for choosing a Fractional Jet card: the perceived security and the possibility to select a particular airplane model or a small choice of airplanes, as distinct from a whole class such as Light Jet or Midsize Jet.
Factional fleet are usually uniformly equipped, so it's difficult to imagine that you fly with different planes every year. Flexjet is the exceptional case, which gives the cabin a certain variety of designs, but not its cabin configurations. However, security is a legitimately important topic when it comes to jet ticket merchants.
So what are the negative of Fractional Jet? There is the idea that you are a second-class citizens behind shareholders, especially at busy times, and that fractional Jetcard applications are more costly, in some cases, not in others. The company is the world's biggest provider of jet exclusive personal aviation and is held responsible for the invention of the Fractional Ownership model.
She did not start selling jet tickets until 2010, however, when she purchased Marquis Jet Partners, a business founded in 2001 by Wheels Up founding Kenny Dichter. The Marquis Jet developed an exclusivity with NetJets and bought stock from the breaker, who then split his stock into 25 hour jet-tickets.
NetJets now has six different map programmes in 25 or 50 hour series. Up until the market introduction of the NetJets Elite map for the Citation XLS/Excel last year, all programmes bore the Marquis Jet logo. Each NetJets pilots is typed in the airplane he has flown and is flying only this airplane typ. 25 hour NetJets tickets are 18 month and 50 hour NetJets tickets are 24 month.
Non-returnable prices are available with guarantee access, although certain programmes have an exception in the second year, so when you buy a ticket on NetJets you may want to concentrate on how much you will be flying within the first year. Another neat little thing is that idle times when calls are converted into the buy of a new jet pass.
NetJets in 2009 cost $711 million and Warren Buffett said without the support of its mother company: "NetJets would no longer have been in business. With your map, you can use your map to reach several planes, depending on your available capacity. They can reduce the overall dimensions of your plane, except on the main travel dates. Programmes have between 30 and 45 top day bookings with a 120 hour advance notice.
The NetJets division covers both North America and Europe for jet tickets. The Flexjet has only two jet chart programmes in the Light and Super Midsize category - one for the Embraer Phenom 300 and the other for the Bombardier Challenger 300. It is part of Directional Aviation Capital, under the leadership of Famer Ken Ricci's Commercial Aviation Hall, which also comprises Sentient Jet, a major jet chart brokers, and Skyjet, which offers one-way jet ownership programmes, a different from NetJets.
Like NetJets, the airline also has Nextant Aviation, which refurbishes privately-owned jets, giving it extensive expertise in all aspects of operation. In the last two years Flexjet has been in the headlines quite frequently. The nurse -break salesman Flight Options is dismantled. The Flight Options business concentrated on the sale of second-hand airplane interests and also the sale of jet tickets.
Flexjet is also concentrating on new long-haul planes such as the Gulfstream G650. Historically, Directional Flexjet bought Flexjet from Bombardier in 2013 together with Skyjet in the same year that it bought Sentient. Now Skyjet is operating from the same office outside of Boston, where Sentient has its head office, while Flexjet is located at Directional's head office in Cleveland after moving here from Dallas.
Flexjet tickets expire within 24 month after the entry into force of the contract or when the hour is used up, whichever comes first. As with NetJets, there is no trust fund. Challenger 350 Jet has a very appealing 60 minute min. range and there are only 10 top business day for Flexjet's jet ticketing programmes.
However, there is a 40% supplement for the Challenger on top times, so while we like the ticket you have to make sure you don't have to go at those times. Either ticket has a 24-hour call for bookings and the flight cancellations for high and low season are only four hour, so many last-minute changes may well make the Flexjet tickets work.
NetJets and Flexjet have both opened their own home lounge at busy Teterboro, Westchester County, Florida and Dallas Love Field airfields (see picture above). By chance, if you are living in a Flexjet or NetJets privately owned lounging location, it might be a great advantage to make your choice in favour of this one.
The Executive AirShare provides jet tickets in an area covering the Midwest and Great Lakes. Programmes are calculated on the basis of a combination of day and per hour basis. He' s got 10 flight day programmes. The former U.S. Open and British Open champions and legendary golfer Tom Watson is a proponent of programmes that feature the Phenom 300 and 100, the Citation CJ2 and King Air 350i.
Nonolas Air is often referred to in relation to fractional vendors, although its own and managed majority ownership and operation of the airline's aircraft makes it possible to offer a number of jet ticketing services. PlanningSense, which runs a fractional stock option plan on the basis of the Pilatus PC-12 Turbo Prop, and now the PC-24 Jet no longer sells jet-graphics.