Fractional jets allow multiple people to own a part of an aircraft, splitting maintenance fees and ensuring availability with just four hours’ notice. Different levels of ownership determine guaranteed flight hours and privileges, with benefits including access to smaller airports and better service. The contract includes a deposit, purchase agreement, management agreement, and dry lease exchange master agreement. Fractional jet ownership also offers increased safety and security.
The term “fractional jets” refers to an agreement whereby ownership of an aircraft is divided among multiple people who own a “part” of the entire aircraft. Before this ownership model developed in the 1980s, the only way to have a private jet available at any time was to buy your own. This was not only expensive due to the cost of the actual aircraft, but also due to maintenance bills incurred if the aircraft was used frequently or only a few times a year. Aviation’s fractional aircraft ownership model not only ensures nearly the same availability as owning a full aircraft, but also splits maintenance fees between owners. This results in the experience of owning your own personal jet at a much cheaper price.
Companies that offer fractional jets can guarantee the use of a jet at any time, with just four hours’ notice per day, by having a fleet of the same jets, all of which are owned in a similar fashion to timeshare. They also have several additional aircraft plus the number that are collectively owned by their customers to ensure the ownership experience of always having an aircraft ready. This means that each customer will not necessarily fly the exact same aircraft each time, but the aircraft is designed in such a way that the owner cannot tell the difference. This leads to a benefit of split plane ownership: there are often planes located all over the country, so the wait time is usually shorter than when the plane must be prepared and then flown to the pickup location from your permanent location.
There are also several different levels of ownership that determine the number of guaranteed flight hours, as well as the days that they are guaranteed a plane. For example, a quarter owner owns a good chunk of the aircraft and therefore has privileges that a 16th or even 1/8th customer will not. These privileges include access during peak periods of the year, such as holidays, as well as the ability to upgrade to larger, more expensive aircraft that are also part of the company’s fleet.
A fractional jet part usually guarantees a certain number of hours of use per year, such as 50 hours for a 16 part, 100 hours for an eighth part and so on. These hours are typically calculated by calculating the amount of time an owner spends on the aircraft and does not include time the aircraft spends flying to the pickup location or back to base. In the same way that the cost of the real jet is divided among the owners, the fractional jet model also divides the maintenance charges according to the participation of each customer. This is usually billed monthly and includes pilot salaries, upgrades, and the like. In addition to these monthly bills, the owner must pay for fuel for each trip.
The contract used for a fractional jet agreement has several components. The binding contract or deposit is a deposit that the owner gives to the supplier company to maintain his part of an aircraft. The purchase agreement solidifies the purchase of a share of the supplying company. The management agreement outlines the owner’s rights and obligations, including flight times, waiting time for the aircraft to arrive, fuel and maintenance costs, etc. Finally, the dry lease exchange master agreement explains the differences between share amounts and the different rights of partners with respect to aircraft ownership.
Other benefits of the fractional jet ownership model include the ability to avoid the hassles of airports and drive to the plane. Private jets can also avoid busy airports and instead choose to fly into or out of smaller local airports that are closer to their desired end-of-travel locations. Service is even better at the larger centers of commercial air travel, where private jets are handled separately and amenities are better and more plentiful. Also, in the modern age, perhaps the greatest benefit is the knowledge that one is flying an aircraft that is most likely to be safe from any kind of attack or hijacking.
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