RUNWAY GUIDE: FRACTIONAL PRIVATE JET COSTS AND BENEFITS
October 13, 2023
Fractional jet ownership is perfect for those who seek the convenience and luxury afforded by flying privately but wish to avoid the hassles and expense of outright ownership. Although this innovative concept of splitting the considerable costs of a private jet into manageable shares has been around for over 30 years, many are just now discovering its true advantage.
Some find it useful to compare the experience of this ownership model to something of a private jet timeshare, a jet subscription or even a country club membership. Despite its user-friendly format, many will find fractional jet ownership to be more confusing when juxtaposed against jet lese or jet card alternatives. Being a global leader in subscription-based private aviation, Flexjet believes this misnomer has held market sway for long enough.
In this article, Flexjet breaks down all the costs, commitments and benefits involved in a typical fractional share exchange from our perspective. With all the cost components and facts on the table, discover how this private flight model can manifest benefits to enhance your travel experience and provide perks that extend well beyond the cabin.
FRACTIONAL JET COST STRUCTURE
Ideal for those who fly 50 or more hours per year, with fractional, there are minimum and maximum contract periods. Most costs are fixed and aircraft Owners may use depreciation deductions applicable to a capital asset. A portion of a share purchase can be sold back to the provider at the end of the contract.
Much of the cost of fractional ownership can be broken down into four basic parts:
- Capital Cost (Ownership) – An asset purchase that allows for a minimum of 50 flight hours per year priced at predictable rates over a specific term in the type of aircraft owned.
- Monthly Management Fee – Covers the indirect expenses associated with operating your aircraft, including pilot staffing and training, insurance, cabin support, trip management, crew provisions, and other administrative costs.
- Occupied Hourly Rate – Charged for each hour you are in flight, plus 2/10 of an hour for taxi time. Bundled into this rate are direct expenses associated with maintenance, standard catering, and engine operation.
- Fuel Component Adjustment – Added to the base hourly rate to account for fluctuations in the cost of fuel, which varies monthly.
Share sizes range from 1/16th (50 hours) to one half shares (400 hours) with each level giving an aircraft Owner a percentage of the 800 flight hours available per year on each aircraft. For example, a 1/8th share entitles an aircraft Owner to 100 flight hours annually, which is approximately 50,000 nm.
FRACTIONAL JET OWNERSHIP BENEFITS
When comparing shared, private jet ownership providers, you are comparing many factors beyond costs, including the age and performance of the aircraft; quality of onboard service and amenities (such as catering and Wi-Fi); levels of personalization and flexibility; operational details such as the primary service areas, peak days, and fuel price adjustments. Fractional jet ownership provides all the control of whole jet ownership without many of the drawbacks.
Discover some of the unmatched benefits offered to ALL Flexjet fractional owners. Some have the ability to make travel itself more convenient, efficient and seamless – while other aspects promote added layers of luxury in addition to exclusive social opportunities and invites.
Program Aircraft Guarantee
If you fly on a non-Flexjet aircraft for more than five percent of your utilized hours, those hours will be credited back to your annual allocated hours for the following year.
Utilize Multiple Aircraft
Depending on your ownership level, you may use up to five aircraft in one day. Multiple-use benefits are based on the total number of share hours you own rather than share size within a single aircraft.
Gulfstream G650 Access Programs
As the exclusive fractional home of the Gulfstream G650, Flexjet presents you with a pair of unique ways to own this incredibly capable aircraft. Granting you the ability to “right-size” your jet to fit each trip, Unlimited Access offers leading fleet interchange incentives on any aircraft in our fleet.
Versatility Plus™ is an innovative Flexjet-exclusive that allows you to customize your annual flight hours to align with the actual number of flight hours you require each year. This option can provide significant savings by making up to 25% of your hours available to other Owners within the Versatility Plus pool. If you’re flying less than expected, reduce your costs by selling hours to other Flexjet owners. If you’re flying more than you expected, you may also purchase hours from other Flexjet owners in the same or different cabin types.
Typically, for any flights lasting under one hour, you will incur a standard minimum charge of one flight hour. With Flexjet, you receive two short-leg waivers annually for every 50-hour share you own. This means you can fly short routes (under one hour) and only be charged for the actual flight time involved with your trip.
Exclusive Red Label by Flexjet™ Experiences
The Flexjet fractional ownership program presents many extras, including Red Label by Flexjet. Red Label lets you enjoy the best of whole ownership for a fraction of the cost thanks to crews dedicated to your tail number, interior designs from our LXi Cabin Collection™, and much more.
Remember, your selected private jet provider has as much to do with your overall private jet experience as the program you elect and the aircraft you utilize. Your choice of provider is a significant decision in your private travel journey and is not to be understated. At Flexjet, we rely on our decades of experience, our global fleet of world-class aircraft, and our passion for genuinely elite travel to guide the creation of each program and its offerings.