Comparison study of buying an airplane, fractional share, jet cardrivate jet charter

13. Page 3-4

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3. Program Characteristics 




Private Jet Travel: Understanding the Options  

October 2003 



consistency.  In certain instances of high demand, the program usually reserves 
the right to charter an aircraft from outside the network to meet that demand.  
Such aircraft are not likely to look the same as your aircraft and may even be an 
entirely different model.  That said, in such circumstances you may even get 
lucky and gain access to an aircraft larger than the one for which you paid. The 
major programs typically perform thorough audits of the operators and aircraft 
that they “charter in” to ensure safety and consistency standards are met. 
Fractional share ownership also gives you an opportunity to “upgrade” or 
“downgrade” to bigger or smaller aircraft in the fleet, based on formulas that 
outline the number of hours you are “charged” for using a program aircraft other 
than your own.  Another Fractional Ownership benefit not typically available to 
whole aircraft owners is the concept of multiple or simultaneous use.  This benefit 
gives you (i.e., your staff or family) the ability to use more than one aircraft at the 
same time, offering added flexibility.  The rules surrounding “upgrades”,  
“downgrades”, and simultaneous use differ greatly by program, share level, and 
aircraft type owned.  In general, it is easier to “downgrade” than it is to “upgrade”; 
some programs limit or even prohibit the “upgrade” benefits for owners of light 
aircraft or smaller Fractional shares. 
New Fractional regulations – following current industry “best practices” -- impose 
training, flight-and-duty time, maintenance, and record-keeping obligations on the 
Fractional programs similar to those governing Charter operations. They also 
clarify that the Fractional program participant is in “operational control” of an 
aircraft (whether or not they own a share in that specific aircraft) during their own 
flights, though the program is in operational control for positioning and similar 
flights. This imposes some of the regulatory compliance requirements on the 
Fractional customer, though specific functions can be delegated to the program. 



Key Areas to Consider When Evaluating Fractional 

•  Whether usage will exceed the typical 50-hour minimum 
•  Typical travel patterns (degree of inefficiency) 
•  Speed of aircraft chosen (as some fees are driven by flight time) 
•  Size of the Fractional network 
•  Mix and age of aircraft in fleet 
•  Service levels guarantees 
•  Stability of the Fractional program manager 
•  Policies relating to “chartering in” non-program aircraft (frequency, audit 


•  Repurchase terms and market depreciation risk 
•  Approaches to shielding potential liability  
•  Rules regarding how allocated hours are used and carried over 


Aircraft type 







"Chartering a plane, either directly from a charter company or through a charter broker, is often the most cost effective way to fly private."

Independent Source: Deloitte Private Wealth, Private aircraft: Flying private makes sense for those with the right information (page 20)
*This website has no affiliation with Deloitte.