Private Jet Share CostCost of private jet shares
Jet cardholders of charters depart on aeroplanes chosen by the charters, but these carriers generally do not own or own their own aeroplanes. Pricing for a 25 h jet ticket with a lightweight jet ranges from $120,000 to $150,00. As an example, the cost of flight options for 25hrs on a Nextant 400XT is $132,500, but that does not include refueling charges.
However, the net jet cost of the Phenom 300 begins at approximately $172,000 and covers the cost of gasoline but does not include any additional gas surcharge. Excluding FET (excise tax) both indicated rates. A 25 hours jet ticket on a Citation Latitude begins with about $210,000 plus FET on net jets and all additional fuels must be added.
Flight Options are available at a cost of $170,500 plus FET and all applicable refuel costs for a 25hr Jetcard on a Citation X. The Private Jet Services charge $166,250 for 25 hrs on their "Mid Priority" (slightly older aircraft) or $183,875 on their "Mid Elite" (newer aircraft). FET and additional petrol are included in both prices.
A Gulfstream G450 has a 25 hour net jet cost of $363,900, which covers essential transportation costs, but FET and all additional transportation costs are additional. The Private Jet Services division has an $11,050 per hour rate for heavier planes under the Priority Programme and incorporates FET and propellant supplements. When you compare the prices for jet cards, you should make sure that you compare apple with apple.
Various suppliers charge different fees in or out of the top prizes they state.
Disadvantage of private jet shareholding
Are you wondering if owning a fraction of an airplane is right for you? Do you think an on-demand jet charters or other agreements "even the acquisition of your own aircraft" would be a better option? There' s an old saying that if you spend between 50 and 400 flying hrs a year, owning a fraction is the best way.
In addition, if you are flying less than 50 hrs per year, the advantages of owning a fraction of the cost of a jet charters are likely to outweigh the magnitude and variation of the cost and the long-term obligation involved. More than 400 flying hrs per year makes buying your own jet more appealing.
Don't suppose that if you fly between 50 and 400 hrs per year, this fraction of the property is your best one. When your trip involves many jumps, say 30-minute trips, you loose almost half of your travel immediately. According to the usual operational procedure, each partial trip is calculated with at least one additional hours, so that your 50-hour capital expenditure can only earn you 25 real working days.
Your Fractionated Carrier cannot warrant that it will operate you within the regular call-in period, or that it will get you on or off a particular plane that best meets your needs. Quite the opposite, if you know well in ahead when you will be flying on a day outside of the main holiday periods, the call-in period is of little use to you.
However, the supplier still has to include the cost of sustaining this ability in its operating scheme. Owning a fraction is an announced benefit that you do not have to pay directly for re-positioning planes to operate your flight. However, if your home or office is in or near a major metropolis or travel location, you are probably already well supplied by a large charters pool, eliminating the need to reposition the plane.
When your flight is brief, deepheading services from charters (which take the plane back to its home base) are relatively cheap, which in turn limits the fraction of the advantage of not directly having to pay for deepheading. In fact, if you travel many same-day round-trips, you can completely eliminate idle time fees on jet charters.
Factional property management demands a long-term engagement for your degree of utilization. When your commercial needs shift, when you move or a number of other potentially different circumstances occur within that five-year timeframe that alter your travelling habits, your split property will remain - even if charters are the much better option.
In the end, you can pay for a quantity of flying hours that you will not use, or pay substantial charges to cancel your partial contract. In order to minimise their cost, many fractionated operators have restricted the number of planes they keep in their fleet. When your plane does not really meet your needs, you may not be able to buy that fraction.
Insufficient small fractional ownership focuses their attentions on whether they are well serviced by the abilities of their planes. When your broken plane is unable to make your preferred or most common journeys without refueling, when it doesn't carry all the baggage for that ski or golf holiday, or when it can't arrive or depart from the nearest airport, you probably won't be very lucky with your return on your purchase.
Although the supplier may have the ideal airplane for your needs, there may be so few in the airline that much of your flying hours are already diverted to other airplanes, creating the same issues. When you need cost assurance, fractal ownership may not be the way to go.
In contrast to jet chartering, you carry the inherent risks of your airplane value (and therefore your share) changing significantly over the course of your lifetime, making it unpredictable to predict with any degree of accuracy what your real costs will be over the lifetime of your initial investments. Here too, as with all expenses, the option costs for the acquisition of a fractionshare are incurred.
Expenditure on investments can be substantial, and the resource invested here cannot be used elsewhere in the enterprise. You should consider the cost of opportunities for such an initial purchase when you compare the costs of different options . Once a fractionshare is acquired by a company, it will most likely have to be recorded in your accounts as a pecuniary value.
It can be a sensitive issue for stockholders, especially in difficult business conditions. On the other side of the coin, charters can be a part of your company's total travelling expenses. It should be the aim of every private airline trip investement to acquire the maximal flying hours with suitable airplanes from a serious and secure provider at minimal costs.
Choosing the right option can cost you several hundred thousand pounds in needless costs. That does not mean that a fraction of the shares cannot be a meaningful return, only that there is much more to consider than just the number of flight hour per year. High-ranking managers and other private persons use private air travel because it helps to save valuable personal resources.
Offering the versatility of an on-demand offering with no recurring or long run deployment charges, as well as a dedicated Concierge offering not matched by the industry peers. Knowing that companies need private flying to be successful, many corporate leaders and other senior managers are spending many long flyinghours, so we aim to provide them with a full suite of experiences.
For private or group jet charters, please call Stratos Jet Charters at (888) 593-9066. Jet charters are available around the clock to offer you several private jet offers for your on-demand outing.