You need the flexibility of a private jet but you do not (yet) intend to buy your own? There are several possibilities. One of the best-known ways is the so called fractional ownership. But is it the best solution?
Fractional Ownership: the classic solution
If you contemplate about the advantages of private jets but don’t want to take the step to owning one Fractional Ownership quickly comes to mind. It means you are sharing a private jet with other owners and share therefore proportionally expenses for maintenance, crew, insurance, operation and service.
Shares vary from 1/16 to 1/4, with 1/16 being equivalent to about 50 flight hours based on an average of 800 possible flight hours per year – of course depending on aircraft type.
A business jet with several owners is normally managed by an operator who is responsible for the administration and operation including the crew as well as insurances, liability issues and all safety aspects.
When partially owning a private jet you commit yourself to a particular type of aircraft that suits your needs best. As part of your contract you have the right to regularly using the private jets without having to worry about anything – despite of course having to pay.
Jet Cards: the flexible solution
If you don’t need to possess an aircraft and instead just want to regularly have access to a particular aircraft Jet Cards are a good alternative to ownership. In principle, they work like prepaid credit cards. You pay in advance for a certain amount of flight hours and thus gain a specific contingent…..and your flights are deducted from your “credit”.
The big challenge is to carefully take a look at the contractual conditions and compare the rates of different providers. Quite often taxi time, changing the aircraft type or using more flight hours than originally planned additional fees in different heights are charged.
So you only roughly know in advance how much you’ll actually have to pay.
Frequent flyer programs: the flexible and cost-effective solution
Frequent flyer programs offered by operators have the same advantages as jet cards. You agree on a certain amount and pay in advance. The booked flights then are deducted from this “account”.
By booking in advance you get a better price per flight hour, yet you remain flexible regarding aircraft type and model.
Another advantage is that you are not bound to a particular type of aircraft. You select your aircraft flexible depending on whether you are traveling alone, with your family or with your colleagues, whether flying shorter routes within Europe or longer distances as for example overseas.
Thinking of sharing a private jet? Get advice
There are lots of different solutions on the market, all having their advantages and disadvantages and characteristics. Depending on your personal flight patterns, desired airports, flight distances and frequency of flights partial ownership or frequent flyer programs may well suit more (or less).
To find the best option for you get in touch with an independent consultant for assistance in the decision making process.