How to Buy Fractional Ownership of a Jet Plane
Nothing paints a bolder picture of success than a corporate executive arriving at a make-or-break stock meeting fresh from the tarmac. In a global economy, travel by private jet isn’t merely flash, but often a competitive reality to avoid the scheduling constraints of commercial flight schedules. For most companies, an occasional charter flight is the closest their executives will ever get to their own gangplanks. There is, however, an alternative. Fractional aircraft ownership offers a piece of corporate luxury for a fraction of the price. You don’t own a whole plane, only a piece of one.
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Instructions
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Contact a fractional program provider. Fractional ownership in an aircraft employs similar provisions to time-share companies. You buy stakes in an aircraft and the vessel is available to you for a portion of the overall time. There are several companies that offer the service, but they do so with differing rules and policies. It is important to customize an ownership plan with a company that works for you and your needs.
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Decide what your flight requirements are. Before you can choose an aircraft or a company, you must first decide upon the type of flying you will be doing, when and where, and how many passengers you anticipate on an average flight.
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Choose an aircraft. The size of an aircraft determines not only its passenger capacity but also its speed and travel distance between refuels. Light jets are the smallest, with the fewest amenities, a typical 4-8 person capacity and a 3-4 hour range; Mid-size crafts can travel 4-5 hours or up to 2,500 miles, usually offer a small galley and fully enclosed lavatory and have a capacity between 5-9, and Heavy Jets are the largest, with the most amenities, a travel range of up to 7,500 miles and a capacity up to 19 passengers. The well-known Gulfstream is of this category.
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Ask about safety and track record. Before you sign with a fractional provider ask to which organizations they and their pilots belong. Ask about pilot training and requirements on all of the planes in their fleet. Choosing a firm that offers only one type of aircraft is limiting, but it assures pilot familiarity with the plane. Among the other questions to put forth are whether they are monitored under Federal Aviation Regulations (FAR); if they subscribe to maintenance organizations such as Wyvern, Q-Star, and Argus; if the planes are equipped with Traffic Collision Alert Systems (TCAS) and Enhanced Ground Proximity Warning Systems (EGPWS), and whether the pilots are trained in basic first aid and CPR.
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Select a level of fractional ownership: 1/8, ¼, 3/8, or 1/16. The fraction translates to hours of flight time in a year. The number from which they base the fraction varies with the company. For a sample chart and rates, look at the below Plane Smart website where a ¼ share represents 150 flight hours at a base cost of $151,800.
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Sign a contract, commit to a tentative calendar and make payment.
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Tips & Warnings
There are many available frills for your flying dollar from concierge services to private chefs. Also, if your plane isn’t available on a particular date, much like traditional time-shares, you may be up-graded to another craft at discounted rates.
In addition to the base price, you will be responsible for taxes, maintenance and storage fees, hourly pilot rates and insurance. Read the fine print. Each company and contract is different.
