Fractional aircraft ownership became popular in the 1990s and involves purchasing a portion of an aircraft. In return for purchasing a part of the airplane, you are entitled to use a similar plane within the company’s fleet. Typically, an agreement includes 100 hours of flying time per year for each eighth share. An aircraft operator manages the plane, including pilots, maintenance, insurance, catering, and more. You pay the cost of the skyshare fractional shares when you use them.
The cost of operating an aircraft is split between the direct operating costs and the fixed costs. These include fuel, maintenance, engine reserves, and pilot fees. Because fractional aircraft ownership is a shared ownership model, you give up control of your aircraft’s cost and rely on the company to manage all costs. The other factor is the management fee. This fee increases with the size of the share you purchase. The management fee is pro-rata to fixed costs, such as, hangar, and administrative costs. In addition to the flight costs, the fee also includes a fee for management services. As a result, this fee can be a disadvantage when you fly less than ten times a year, but an advantage when utilization rates are low.
The primary benefit of fractional aircraft ownership is its liquidity. If you’re flying a particular plane frequently, you’ll want to find a provider with a solid guarantee policy. The service should be transparent and provide detailed information about your account. Most fractional providers will offer a variety of features and benefits. For example, you’ll be able to reserve aircraft with only 12 hours’ notice. In addition, your fractional share will have access to multiple types of planes. If you don’t have any particular preference, check whether they allow you to use other airplanes. You can also negotiate with your provider if you’re unsure what kind of equipment you’ll use.
The major fractional aircraft ownership providers are: Flight Options, NetJets, and Flight Options. These companies operate under the Directional umbrella and offer a diverse range of planes. The first two have the largest fleet in the U.S., while the second two are primarily focused on European operations. However, the third and fourth largest provider, Avantair, has also been unable to compete in the industry. Despite the growing popularity of fractional aircraft ownership, the FAA says the new regulations will not affect traditional flight clubs or traditional management companies.
The new rule on fractional aircraft ownership has been in effect since November 17. The rules on a program’s management specification have become mandatory on flights after December 17, 2003. This means that you may not fly after obtaining a certificate of ownership from a company that is not meeting FAA requirements. The majority of these programs will need to obtain management specifications under subpart K. There are also a number of issues with the safety of the airplanes.