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

25. Page 4-3

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4. Key Attributes 




Private Jet Travel: Understanding the Options  

October 2003 



The commitment attribute captures the degree to which you must commit to a 
business aviation service offering.  This includes issues such as whether or not 
you have to sign a contract. What is the length of the term? How easy is it to 
terminate, and what are the associated penalties? How easy is it to renew?  
Some business aviation users are prepared for a long-term commitment while 
others prefer the flexibility to pay as they go. 
Charter. Charter falls at the low end of the commitment scale, as there are no 
requirements beyond what you agree to with each individual trip.   
Block Charter and Block-Frax. Block Charter and Block-Frax both require a 
somewhat higher level of commitment, as you will normally be asked to sign a 
one-year contract.  Some programs offer prorated refunds for unused hours if 
you leave the program. 
Fractional. The term of Fractional contracts vary by program; they are typically 
multi-year arrangements with penalties for early termination (e.g., after one, two 
or three years - depending on the program).  On the other hand, Fractional 
programs do provide you with a guaranteed buyback at the end of your term.  
This assurance provides many with peace-of-mind that there is someone 
standing ready to buy back their share at termination. 
Ownership. With Whole Aircraft Ownership, you do not have a specified contract, 
unless you hire an aircraft management firm. These agreements typically span a 
single year, with termination on 30 or 60 days notice. But you do have to acquire 
the asset, with the associated costs and risks. If you build an internal flight 
department (i.e., pilots, mechanics, etc.), you have made a fairly significant 
commitment to your aviation operations. You have the flexibility to determine at 
any moment to dispose of your aircraft, but you will need to find a buyer, will 
likely incur brokerage fees, related sales expenses, and transaction costs. 




Charter is trip by 

Block Charter/ 
Block-Frax are 
usually one year 


Fractional is 
usually multi year




Ownership is at 
will, but . . . 


"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.