What to Watch Out for In Private Jet Fractional Ownership Programs

As the popularity of private flights continues to grow, there are more options than ever in choosing the way you travel.

Private jets give you comfort, security, flexibility, and privacy that you cannot get on traditional commercial flights. If you are looking into options for private flying, you have likely considered private jet fractional ownership programs.

These programs let you purchase a portion of an aircraft, which you share with other owners. If you are looking into a fractional jet ownership program, there are a few things you need to consider. here are 4 things you need to watch out for.

Top 4 Concerns with Private Jet Fractional Ownership Programs

Fractional jet ownership was started by Warren Buffet with NetJets in the 1980s. At the time, this was an innovative and more affordable way to enjoy the benefits of private jet flying.

Today, many of the benefits that were previously available in fractional ownership programs are readily available elsewhere without strict contracts or large up-front costs.

When looking at the benefits of fractional private jet ownership, you need to watch out for these 4 concerns.

1. Hefty Upfront Costs for a Share of Ownership 

When you invest in a fractional ownership program, you typically purchase flight hours in increments of 1/16. To fully purchase a private jet costs millions, so even just 1/16 of that cost is going to be significant – at least $100,000. To justify that cost, you need to fly between 100 and 200 hours per year, at a minimum.

Another significant fractional jet ownership cost is depreciation. Because fractionally owned aircraft are used more frequently, they tend to depreciate faster than other types of private jets. A moderately used jet typically depreciates between 6% and 7% each year. A fractionally owned jet will depreciate faster. This means the capital you initially spent will be worth significantly less when your contract ends.

2. Lengthy Contracts that Lock You in 

When you sign up for a fractional jet ownership program, you are locked into a contract for a specific amount of time. These contracts typically last between 2-5 years. If you are unhappy about your fractional ownership experience, there is no easy way out.

If you want to break your contract, there are typically expensive penalties for doing so. In addition, many fractional ownership programs charge a reselling fee at the end of your contract. This can be upwards of 7% of the price of the jet.

3. Scheduling Issues with Desired Aircraft 

With a fractional program, you sign a contract for a specific airplane. If your travel needs go beyond what you initially signed up for, you will have to pay more for access to a larger plane.

In addition, if urgent travel needs arise, but your plane is being used, will you be left stranded? Will you have to pay more for access to an alternative plane?

3. Mechanical Problems with Aircraft 

With the advanced engineering inside a jet, mechanical issues are bound to happen. You want to fly on a well-maintained, properly working plane. However, what do you do when your jet is out of commission for sudden mechanical problems, and you need to fly? Will the fractional ownership company you worked with offer you an alternative? Is there a backup plane that you can use?

Skip the Cost of Fractional Jet Ownership and Fly On-Demand with Jettly

With the high cost of ownership and long-term commitments, fractional private jet ownership may not be a good fit for you. A more versatile, more affordable alternative is on-demand private jet chartering through Jettly.

We give you access to instant booking online with more than 20,000 private jets and other aircraft around the world. Tell us where you want to go, even if it includes multiple stops, and we make it easy to plan your trip.

Ready to get started? Contact us today for private jet charter pricing and enjoy the benefits of on-demand private flying.

‍