Fractional Aircraft Ownership - Finding the Right Provider
The key to private jet fractional ownership is finding the right provider. Not only do you have the freedom of choosing your own aircraft, but you also have the ability to take advantage of a fleet of jets that are fueled and maintained. With these programs, you'll be able to transport your management team to and from business meetings with ease. Additionally, you'll only pay for the air time you use. That way, you can fly as much as you like and get as much use out of your investment.
There are three primary components to fractional aircraft ownership. First, there's a comprehensive agreement that sets out what's involved. You'll need a limited power of attorney to allow the provider to change the aircraft's registration name, and a management and purchase agreement. An owner agreement is necessary if you plan to take advantage of the benefits that fractional ownership provides, including the ability to fly longer missions or carry more passengers.
The rules were updated in December 2014 after input from AOPA. They removed regulations for flying clubs and shared ownership, but they still require that Fractional Ownership Schemes meet certain requirements. The only thing they have in common is that they have to include flight crews. Then, they must be able to offer service to customers who fly fractional airplanes. In addition, the FAA has clarified that the regulated businesses are no longer flight crew businesses.
Lastly, the contracts should be negotiated carefully. Many providers will give you a limited number of trips and service levels. You need to consider the time of year you'll need the plane. You should also consider the company's reputation and past experiences in the industry. Some providers don't have a lot of experience, but they may have an airfield or a flight crew on hand who can handle any emergency. And, if you're traveling on an executive trip, you'll need to consider your safety and health.
Although some providers are more flexible than others, they all have different fees and restrictions. The costs of operating a plane may be higher than the cost of a fractional ownership program. The final sale price depends on the market prices for each plane. Often, you can take several trips simultaneously, depending on your schedule and budget. The costs for each type of aircraft vary. In addition, you should consider what type of service you need.
One of the biggest drawbacks of fractional aircraft ownership is its limitations. Because they are taxed differently, many people who buy fractional aircraft do so for tax reasons. They are also not allowed to make any decisions about the use of their aircraft. However, it is important to know that these programs will limit the hours a person can use the plane. Typically, a person who has a large budget may not need to use it more than a few times a year, so this does not impact their financial situation.