Fractional Aircraft Ownership Programs
Fractional aircraft ownership programs generally include a Management Agreement that governs the relationship between all owners. A share of a particular plane is a limited power of attorney that permits the provider to change the registration name and the terms of service. This type of agreement must be signed by all the owners of a specific aircraft. The program may also include additional agreements, such as an owner agreement for water-landing airplanes. It is important to carefully consider the investment before deciding to invest in fractional airplanes.
One of the major concerns of jet fractional ownership programs is the maintenance of the aircraft. Many programs will not provide maintenance on aircraft, so it’s important to look for companies with a good guarantee policy. The company’s fleet has been remodeled and it has a strong flight record. This makes it difficult to find a reputable aircraft owner. For this reason, it’s critical to read customer reviews. If you’re a frequent First Class traveler, you may want to look elsewhere.
The main disadvantage of fractional ownership is the maintenance. The aircraft’s direct operating costs are fuel, engine reserve fees, pilot fees and other costs. These costs cannot be controlled by the fractional owner, so these costs must be covered by the provider. Another downside of fractional ownership is the management fee, which increases with the size of your share. This fee represents a pro-rata share of fixed costs, such as hangar, insurance, administrative cost and training. The management fee is a big drawback, particularly if you are using your aircraft infrequently.
If you’re planning a trip, fractional providers will provide backup aircraft for you. Jeff Immelt, the CEO of GE, admitted that he and his wife flew in a back-up plane so they wouldn’t be inconvenienced if they weren’t able to make their flight. Some fractional providers will also offer access to more than one type of aircraft. Check with your provider before booking a plane.
The biggest advantage of fractional aircraft ownership is the tax benefits of full aircraft ownership, and it eliminates the burden of hiring a crew, arranging maintenance and storage. The operator will take care of all of these tasks, including the maintenance of the aircraft. There are a wide range of sizes and types of fractional shares, which vary according to your needs. You can buy a small part of a jet for fifty hours of flight time, or a whole plane for eight hundred hours a year. You can also buy a bigger airplane and share it with other owners.
There are other benefits to fractional aircraft ownership, such as lower initial investment. The advantages of fractional aircraft ownership are: the freedom to fly when you want, and the flexibility of not having to worry about maintenance. The only disadvantage of fractional ownership is that there are no guarantees. The only certainty is that the program will still be available when you need it. If you’re interested in learning more about the benefits of this type of aviation, you’ll want to read the review of SkyShareUSA and learn about its benefits and disadvantages.