If you frequently travel for business, you might require the convenience of a private jet for on-demand flights or prefer more flexibility in your travel plans than what commercial airlines offer. Owning a private aircraft can be prohibitively expensive, costing millions of dollars annually. However, there are alternative options available in the form of private air travel services and fractional ownership of aircraft.
Fractional ownership, also known as shared or partial aircraft ownership, allows individuals to own a portion of a private aircraft and share its costs with other owners. In this article, we will explore the differences between private aircraft charter services and fractional aircraft ownership to help you make an informed decision on which option is best suited to your travel needs.
Private Charter vs Fractional Aircraft Ownership
A couple of less expensive options are fractional ownership and charter-type arrangements. With these, you still have the use of a private aircraft, but at a lower cost. Fractional ownership and charters have positives and negatives, and your situation could dictate which is best.
In very general terms, if you fly less than 100 hours per year, a charter might be best, and if you fly between 100 and 200 hours per year, fractional ownership would be the best option.
Fractional Jet Ownership Program
Partial aircraft ownership, also known as fractional jet ownership, offers numerous advantages over full aircraft ownership. The benefits of participating in a fractional program include:
Guaranteed access to more than one aircraft
Flexible availability of flight hour and actual flight time
Greater privacy as a partial aircraft owner
Multiple aircraft options
Personalized investment opportunities
One of the significant advantages of fractional share jet ownership is the availability of aircraft on short notice. Most fractional providers can typically have a plane ready within only a few hours, making it an ideal choice for those who require flights quickly.
When participating in a fractional program, fractional owners of jet shares can utilize depreciation deductions related to owning the jet if it is used for business purposes. Fractional jet ownership also provides access to multiple jets of a similar aircraft type, even if the specific aircraft the fractional owner owns a share in is at a different location.
Most share programs are customizable, allowing owners to purchase only the number of hours they require during the year and bank unused hours. Flying private offers the ultimate privacy, and fractional ownership helps maintain this privacy by keeping the multiple owners' names out of public data sources.
Fractional jet ownership offers reduced flying costs as owners avoid paying for an entire jet and only pay a fraction of the costs related to its services, maintenance, and crews.
Private Jet Charter Services
Private aircraft charter services offer a range of benefits for those seeking the ultimate travel experience without the financial commitment of owning an aircraft. One of the primary advantages of private charter jets is the lack of a contract, giving you access to jets without any long-term obligations. You can simply call and reserve a flight whenever you want, with no obligation beyond the one flight you pay for.
While you may not get to choose the aircraft or amenities offered, you can usually control when the flight takes off, assuming a jet is available. Many aircraft charters are managed by companies that own multiple jets, ensuring a wide range of options to choose from.
With private charters, you can enjoy the luxury and convenience of private air travel on your terms, without any of the headaches or fixed costs like a monthly maintenance fee or monthly management fee, associated with owning an aircraft.
Charter Services vs Shared Ownership: Which is Right for You?
Private aircraft charter services provide access to jets without any long-term obligation or contract, while fractional ownership allows individuals to own aircraft, sharing a portion of a private aircraft and its costs with other owners.
Fractional ownership offers greater flexibility, privacy, and multiple jet options, while private charters provide luxury and convenience without the headaches and costs associated with most fractional jet shares or full ownership of an aircraft.
For those who fly between 100 and 200 hours per year, fractional jet ownership of an aircraft or owning fractional shares of multiple aircraft might be the best way to go. However, charter-type arrangements are more suitable for those who fly less than 100 hours per year.
Looking for private jets for luxury air travel? Contact Royal Air Charter today!