Flexjet by Bombardier

There are five separate components that make up the cost of purchasing and operating your fractional aircraft:

Purchase Price

The initial capital outlay to acquire an ownership interest in a specific aircraft

How it is calculated

The purchase price covers acquisition of the aircraft share. The cost varies by aircraft type and share size and is due upon aircraft delivery. ¹ This interest is classified as a fully depreciable asset and will be repurchased at fair market value at the end of your contract term.

Monthly Management Fees

Fixed costs that cover the monthly upkeep of your aircraft

How they are calculated

The monthly management fee covers the fixed costs associated with aircraft ownership, including insurance, hangar, crew salaries and training.

Hourly Rate

Charged for each hour you are in flight and covers other flight-associated costs

How it is calculated

The base hourly rate includes your base fuel charges, maintenance, standard catering, average fleet repositioning expenses and U.S. airport landing fees. Rates vary by aircraft type and are paid post-flight on a monthly basis. Hourly rates are subject to a 7.5% Federal Excise Tax and a nominal federal segment tax. ²

Fuel Component Adjustment

Accounts for fluctuations in the cost of fuel

How it is calculated

The fuel component adjustment accounts for the variance between current market price and the base fuel cost included in the base hourly rate. It varies by aircraft type and is derived from the market price of jet fuel minus reimbursable federal fuel taxes and applicable volume purchase price discounts. Payments on fuel component adjustments are made monthly, and the cost may change with fluctuations in the market price of fuel. Fuel component adjustments are subject to a 7.5% Federal Excise Tax. ²

Other Expenses

Depending on your travel habits and itinerary, you may incur additional expenses outside of the aircraft operational cost

How they are calculated

Other expenses include but are not limited to de-icing, hangar fees, flight phone, international fees, customs and immigration fees, handling fees, Federal Excise Tax and non-standard crew and catering expenses.

Note:
1. Pricing based on new aircraft. Advantageous used aircraft pricing available. Please consult with your sales director for details.


2. Hourly Rate and Fuel Component Adjustment are considered a deductible business expense. Calculations are based on specific business assumptions. Consult with your tax advisor to determine deductions and other tax implications.

All prices are in U.S. dollars. Pricing and service levels are subject to revision. FCA updated monthly based on current rates.