Fractional jet ownership was created in the late 80's when basically the only way to fly privately was purchasing your own jet. The demand for private jets increased year after year bringing to the market over 260 private jets worldwide. With so many jets around the world managing companies where created starting a new niche, the charter world. Over the years the demand for private jets has increased from having 260 jets worldwide in the 80's to producing over 260 jets per year in the late 90's.
Fractional ownership is a business model of the 80's that has become outdated given that the demand for private aviation has changed in many ways, and new business models have been developed.
As a member of the Privé Jets Jet Setter Program, you fly when you want, where you want and only pay for the time you fly. Fractional aircraft ownership requires you to pay for your flight hours up front and sign a contract. Buying into fractional ownership typically obligates you to predict your aircraft usage for the next 5 years.
One of the heaviest burdens of fractional jet ownership is that you also have fractional responsibility for its upkeep - you'll pay fees on your private jet even when you are not flying. Jet Setter members get more for their money with no acquisition costs, no monthly maintenance fees and no contracts.
Privé Jets also excels over fractional jet ownership in flexibility, by circumventing an oddity of fractional ownership: Often you will not be flying in the jet you partially own. Fractional jet owners often fly in whichever aircraft is available at the time making it difficult to procure a bigger plane if plans change. Privé Jets builds a personal profile for each client to ensure all flight experiences are tailored to the individual's preferences - plus, Privé Jet is often able to book flights or accommodate changes within just 4 hours notice.
What is a Fractional Ownership?
A fractional aircraft ownership is usually a 2-5 year commitment that involves the following:
Acquisition: In a fractional aircraft ownership a part ownership is required, usually starting at 1/16 ownership of the aircraft. For Example: If the aircraft costs 6 million dollars, 1/16 will equal $375,000. This will be your acquisition fee.
Maintenance: All fractional jet ownerships require a monthly maintenance fee regardless of whether or not you use the aircraft that month. The fee varies according to the aircraft and size of your ownership, but it starts at approximately $6,850 per month.
Occupied hourly rate: Every time you utilize your fractional jet you need to pay the occupied hourly fee which varies on the aircraft you have, but usually starts at $1,554 per hour.
Fractional Jet Ownership locks you to a single aircraft limiting you to that aircraft capability. With Privé Jets you have total flexibility to fly on the best aircraft for each one of your trips.