A Look at Fractional Jet Ownership

We've all experienced it - the commercial flight. After a mad dash to make it to the airport on time, including the hours allotted for getting through security, where you'll have to take off your shoes, empty your pockets, and prove that your laptop is not a bomb, you sit and wait for a couple hours before they decide to start boarding, and give you the privilege of sitting in the cramped seat that you paid a couple hundred dollars for.

The mega-rich have always had the option of private aircraft available to them. If you're Donald Trump, you can think nothing of equipping yourself with a Boeing 727 that costs probably close to $50 Million (not including the costs of pilots, flight attendants, support staff, insurance, fuel, maintenance, etc.). For others, however, the idea of a private jet has been outside the realm of possibility. An exciting concept in private aviation, however, is allowing private jet travel to make more sense for those who have seriously considered it as a possibility.

Fractional jet ownership is a fairly new concept. It is based on the idea that an individual can purchase a fraction of a plane, and pay management and operation fees to a company that will be responsible for safety, pilot training, hiring of crew, and all those other things that you don't want (or wouldn't know how) to deal with. Fractional ownership can substantially cut the costs of owning your own aircraft.

Fractional jet ownership is provided by a number of companies, including Cessna's CitationShares, Bombardier's Flexjet, and NetJets, the company that started the trend. As consumer interest in fractional jet ownership has increased, so has the competition between these companies. CitationShares and Flexjet are owned by aircraft manufacturers, their respective fleets composed mainly (if not entirely) of the planes they make. NetJets, on the other hand features a broader spectrum of aircraft, and is the industry leader. As such, that's who we'll be focusing on today.

It is true that the fractionals substantially cut the costs related to owning an aircraft. That's not to say that private jet ownership is for everyone, however. The primary target of the fractionals consists of those who have considered owning (or sharing) a jet, but found the arrangements too complicated or expensive to justify, as well as those who are used to first class air travel, but want to make a step up. The fractionals are also an attractive deal for mid-sized companies who need the convenience of a private aircraft without the premium price. According to NetJets's website, purchasing a 1/8 share in a Raytheon Hawker 400XP would set you back $793,750 plus a $10,582 monthly maintenance fee, and an hourly charge of $1,501. That 1/8 share works out to about 100 occupied hours per year. Yeah, it's expensive, but when you consider the price of seven first class tickets from New York to Miami, it suddenly becomes more reasonable. In fact, as a little experiment, I attempted to get the price on such a flight on very short notice. NetJets claims that your plane will be waiting on the tarmac within 6-12 hours notice. With a commercial carrier, I was unable to find a next-day flight, I was unable to find first class seating, and on one airline, I was informed that a return flight wouldn't be available until a week after the date I requested. If short notice flights are commonplace in your life, NetJets offers the solution.

Let's say, however, that you aren't interested in a small aircraft like the 400XP. What if you want something that can fly from New York to London non-stop? Well, just step into one of NetJets's large cabin aircraft. If you are lucky enough to afford these multi-million dollar jets, you will enjoy the highest degree of luxury. The Gulfstream 550, for example, is the latest and greatest in Gulfstream's line of long-haul private aircraft. Aboard, you will find a satellite telephone, video monitors, a DVD entertainment system, data ports, a fax machine, and whatever else you need to run your operations (or enjoy some well-deserved down time) at 30,000 ft. Naturally, the Gulfstream 550 also offers a full service galley, as well as a flight attendant for you and 13 others.

The final frontier in fractional ownership is the Boeing Business Jet (BBJ). If you've ever flown on Boeing's popular line of 737 airliners, you know how big the BBJ is. That's because the BBJ is actually a gutted 737, which is then outfitted with the latest in in-flight luxury. In fact, the BBJ is even available with a boardroom, bedrooms, and a shower. Yeah..... a shower. Nothing says success like the ability to roll out of bed, take a shower, eat a nice breakfast - all while you cut through the air at 528 mph. If the $50,000,000.00 price tag (full price) is a little disturbing, owning a fraction with NetJets can take a large chunk out of it.

Fractional shares start at 1/16 of a share, which can be as low as $369,875 in a Hawker 400XP. That's 50 hours of flying time. For those who don't want the commitment (or the cost) of buying a fraction, NetJets has implemented a lower-cost solution that they call the Marquis Jet Card. The Marquis Jet Card starts at $109,900 for 25 hours in a Cessna Citation V. With the Marquis Jet Card, required notice jumps up to 10 hours, which is still much better than anything the airlines can offer. The card offers the convenience of chartering an aircraft, with the peace of mind that you get from NetJets's safety standards. Other fractional carriers also have prepaid jet cards, so this is a [somewhat] affordable solution for those who don't want to deal with the monthly or upfront costs of ownership.

If you decide that fractional ownership is for you, be warned, you should thoroughly investigate the pilot training, safety procedures, aircraft, and management services that each company offers before making a decision. The big three, NetJets, CitationShares, and Flexjet, offer excellence in each, but some newer fractional start-ups may not be up to snuff. Remember that your security and safety is paramount, and if you feel that it's inadequate with a particular company, take your business elsewhere. If you're serious about making a fractional jet purchase, and live nearby to their operations, don't hesitate to ask for a tour of their aircraft and facilities, they should be more than happy to accommodate you. Many fractional operators hold regular events around the country in which prospective buyers can take a look around the aircraft and the service that they offer.

Fractional jet ownership offers the best of luxury, security, and functionality without the premium total ownership requires. If you've been considering buying or chartering private aircraft, fractional ownership just may be for you.

Jonas Elmerraji is the founder and editor of growFolio, the world's first free online investment and business magazine. Issues are available online at http://www.growfolio.com

More Resources

Whos Paying for the Private Jet?
One of the major perks of being a celebrity is the free stuff. Just ask the famous attendees of this week's VMA music works.
The History of the Aircraft Wash Guys, Part Two
The continuation of the history of a small service franchise business in the aviation sector; whose humble beginnings began in the middle of a recession. This proves that anything is possible and that with enough will and entrepreneurial spirit no matter what the condition of your industry sector, you can succeed in America.
Young Men Trying to Imitate the 9-11 Scenario, Part III
What caused a teenager to crash an aircraft into the Bank of America Building in Tampa? It makes no sense. Read more in Part III to try to understand the causes involved in this scenario.
Diamond Twinstar
Probably one of the coolest experimental aircraft twin-engine aircraft is the Diamond DA 42 Twinstar. The Twinstar is propelled by twin diesel engines which burn Jet A or even conventional diesel fuel.
Cheap Airline Tickets! With Internet Access, The Skies The Limit For Great Deals
With easy access to the Internet, the convenience of finding cheap airline tickets is just a few clicks away. As more airline inventory becomes available directly to the public through the World Wide Web, cheap flights are being purchased in record numbers, and nearly everyone hunting for fantastic low cost airline tickets are finding better deals online, than offered at their local travel agency!If you happen to be wondering why your local travel agency seems to have a hard time competing with all the cheap tickets offered by online travel suppliers, well its a matter of volume.
Entering Business Aviation, Part III: Training Options
Time for some training! So, you are not sure what type of training you will need or how it compares to the commercial side of aviation. For starters, there are some very big differences.
Making a Mechanical Manta with Material Memory Manufacturing Methods
I propose building a mechanical manta ray as a Underwater Unmanned Vehicle; UUV. The manta ray will have air tanks inside of its wings and a sound device, which will also operate a sonar and an ELF communication system.
Laser Beam Guidance for Oshkosh Air Show
The Federal Aviation Administration is devising a method of alerting pilots who enter a restricted airspace to leave immediately. To do this is will use a laser beam pointed at the aircraft in a certain color.
Automated Satellite Following System for UAV Swarms
Much work is being done and the USAF has implemented systems to fly UAVs Unmanned Aerial Vehicles in ah hoc formations like swarms of insects or flock of birds. We cannot quite match evolution and bird flock formations but we are on our way.
Getting Cheap Airfares
Airlines offer tickets at a fraction of the cost you buy tickets. These offers are given to wholesalers and agencies that bring good business to them.
Overcoming Jet Lag
Jet lag can be one of the worst, and certainly one of the most frustrating, aspects of long distance travel. Also called desynchronosis (meaning "out of time"), jet lag occurs when travellers pass through multiple time zones, arriving several hours ahead or behind their "home" time.
Private Jets: 4 Leaders in Fractional Flying
Fractional flying, you say. Is that division? Well, sort of.
Starting an Aircraft Washing Business
So you love airplanes and you want to start an aircraft washing service? I cannot blame you, as I did the same thing. After cleaning Thousands of aircraft over the years, I have paid for my flight school, first aircraft and then started an aircraft washing franchise as a module of another franchising company I had founded.
Sex in a Cessna, Part III
So far we have learned the safety aspect of setting the aircraft up in non-restricted airspace, with auto-pilot and away from other aircraft traffic. Now we will describe sexual positions, which will help you maintain controlled flight without restricting visibility.
India Air Traffic Issues to Come
As India increases its economic growth the population is taking to the air in travel and more and more are flying. Commercial Aviation traffic has increased ten fold in te last five years and is expected to do so again.
International Corporate Catering Guide
One of the more challenging aspects of being a flight attendant is providing in-flight service excellence to your customers. When operating out of familiar territory selecting a highly regardedcaterer is usually not a problem.
Jet Lag - You Can Suffer From It...Or You Can Do What This International Airline Captain Does
Whatever the reason for your travel, you have made a considerable investment. It costs you time and money.
Tactile Strip Sensors on Leading Edge of Material Memory Airfoils
Aircraft designers have always tried to figure out the best compromise for the aircraft they build, trying to get maximum performance at both high and low airspeeds. Now with material memory components they will be able to do this.
Airbus A-380 is Pretty Big
You know the Airbus A-380 is so huge it takes 2 hours to load and unload and that is if you are rushing the people on and off like cattle. The aircraft holds more fuel than a Boeing 727 weighs.
Flying With Your Dog
A pet owner must research the many requirements before taking a dog on an airplane. Different airlines have slightly different regulations, but most airlines follow the same basic set of rules in regards to flying with a dog.

More Aviation Information:

Related Articles

Airbus to Build $600 Million Aircraft Manufacturing Plant in US
Airbus has announced that it will build a $600 million aircraft manufacturing plant in Mobile Alabama. This is significant news and will open doors to US based commercial airlines to buy more Airbus Aircraft in the future.
American Airlines; Crash: Nov. 12, 2001
It seems there were not many comments to the AA crash of November 2001, as soon as it was ruled an accident instead of an attack the media stopped the reports and the story disappeared. The years following have been the safest years in Airline Industry History.
Private Jets: 4 Leaders in Fractional Flying
Fractional flying, you say. Is that division? Well, sort of.
Find Cheap Tickets From all the Major Airlines
All of the major airlines are now associated with different web sites allowing for you to find discount airfare and cheap tickets on the internet. One of the reasons the airlines have done this is because so many people now have access to computers and the internet.
Fighter Jet Trainers Sport Planes
You want a fighter jet as your personal aircraft; do not deny it. You want to travel faster than the speed of sound and play Top Gun in the sky.
Aviation Lawyer: Whether Passenger, Pilot or Owner, You May Need an Aviation Lawyer
If you or a family member has been the victim of an airplane accident, you should find an Aviation Lawyer (Attorney) to help you. It is important to contact an Aviation Lawyer because of the highly specialized nature of Aviation Law.
Jet Lag - 5 In-flight Tips
The secret to combating jet lag, and arriving at your destination with little or no jet lag, lies in sound preparation well in advance of your date of travel. This, however, is only the foundation of your "anti jet lag" plan and all of your sound preparatory work will be wasted if you don't also ensure that you follow a sensible routine during your flight.
New Airbus A-380 Beats Out 747
The A-380 has beat out the Boeing 747 as a target by International Terrorists. The A-380 will become the largest passenger jet in the world holding the largest number of passengers.
Inflatable Aircraft Wing Camber Modification
Every aircraft is a compromise. It is either built to fly fast or slow to land in tight distances and carry more weight.
Automated Satellite Following System for UAV Swarms
Much work is being done and the USAF has implemented systems to fly UAVs Unmanned Aerial Vehicles in ah hoc formations like swarms of insects or flock of birds. We cannot quite match evolution and bird flock formations but we are on our way.
5 Tips for Stress Free Long Haul Flights
The world is becoming smaller by the day. Flying long haul to distant locations for business or pleasure is becoming increasingly more popular.
Really Cheap Plane Tickets
To begin with, the best place to buy really cheap plane tickets is online. Travel agencies can't compete with discount ticket sites.
Flying As A Hobby
Ask a room full of people what hobby they have and you willget as many answers as there are people. Others willconfess that they don't have a hobby.
Do Jet Lag Diets Work?
Anti jet lag diets have been around for some time now, but do they work?Perhaps the best know anti jet lag diet is the Argonne Diet, developed at the Argonne National Laboratory in 1982. Over the years thousands of people have downloaded copies of this diet online and it is reputed to have been used by an impressive list of people including the late President Ronald Regan, the US Secret Service, the CIA and the US Army and Navy.
Lockheed Loitering Missile Expandable Wing Concept
Smart Missiles are expensive, but effective. Efficiency in the the new paradigm of the net-centric warfare will yield results to those who pay attention and do not waste assets.
17 Ways to Keep Safe and Secure When Flying
Here are 17 ways to keep safe and secure when flying domestic or abroad. Air travelers need to keep a sharp eye and an ever present focus on what's going on around them.
Entering Business Aviation, Part I: Types of Aircraft
The jets that people fly in corporate aviation are usually a lot smaller than those found with the airlines. Exceptions to the rule are Boeing's BBJ and Airbus' Corporate Jet, both of which are based on some of the smaller types of aircraft marketed to the airlines.
Sex in a Cessna, Part III
So far we have learned the safety aspect of setting the aircraft up in non-restricted airspace, with auto-pilot and away from other aircraft traffic. Now we will describe sexual positions, which will help you maintain controlled flight without restricting visibility.
Point to Point VS Spoke and Hub? Air Taxi
Boeing it is said took a big gamble in predicting the future of air travel. Instead of going bigger like Airbus and building an aircraft like the A380, the biggest airliner ever built; The Boeing Company decided to go for a more efficient smaller aircraft with better materials and better range.
Preventing Rapid Decompression In Commercial Airliners
In Flight Airline Rapid Decompression Breached Window(Airline Safety)Here is a concept worthy of mention about the issues concerning Airline International Terrorists and Guns in the Cockpit and of course Federal Air Marshals. If a gun goes off in a smaller airliner, 737 or 767 then a bullet could penetrate a window and breach the pressurization system.