We all know there are options in the public sector like First Class, Business Class, or Coach. Each of these options has peaks and pitfalls all on their own, but there are also multiple options available in the private sector!
We’ve talked about what the trends are, but that doesn’t give a near detailed enough picture of the options available to private flyers or the numbers, benefits, and barriers of each.
From full jet ownership, fractional jet ownership, and On Demand private jet charters, there is a lot to know and understand. Which is why Vault Aviation wanted to break it down for you so you can make a fully-informed decision based on the facts
There is no one answer for all, as each flyer has different needs, goals, desires, and destinations in mind, however, certain facts are known, and certain demographics or averages can be pulled from the stats too.
Let’s see the differences, similarities, data, and previous research of each of the three major options in private jet flight: private jet full ownership, fractional ownership, and On Demand private jet charters.
Full Ownership of a Private Jet
Full ownership is what many people still think of when talking about flying privately, whether that be positive or negative, but what is the information you should know about fully owning an aircraft?
The advantages are clear for owning your own private jet – you fully own it, meaning you have full control over times, dates, customer services, amenities, personalized features, and frequency.
But all coins have two sides.
Whole or full ownership also means you have only one aircraft to fit all flight needs, which translates to no multi-departures or availability during maintenance. Additionally, there are extra repositioning fees, high initial cost on the investment, depreciation, and high costs at low levels of use.
Now, this is where the flyer must decide if they feel the positives outweigh the negatives or if another option might fit their needs more accurately.
For some clients, whole ownership and the associated fees such as $700,000 to $4 million in maintenance or continued costs per year are not considered too steep for the convenience of having your very own private aircraft. However, for many others, this is not the case and a marriage between needs and wants must be found.
Benefits of Whole Ownership:
- Full control over your aircraft
- High levels of services, customization, and initial choice
- Low costs with high levels of use
Cons of Whole Ownership:
- High initial costs
- Aggressive depreciating of your asset
- High costs with low levels of use
- No use during maintenance
- One aircraft for all trips – short, long, international, overnight, etc.
Fractional ownership is most commonly associated with NetJets, introduced in 1986, and Warren Buffett. This form of private jet travel was the standard for many years if you didn’t want to own a plane or didn’t use private air travel enough to warrant such a large purchase – both upfront and in operating costs.
Fractional ownership can most easily be explained as if you are buying a share of a fleet or plane, but issues similar to timeshares can come up because of this, in particular, the sharing part. If you are spending at the very least 100,000 dollars, then often the fractional owners have difficulties agreeing on usage times, dates, and heavy-flying periods, even if your fleet is large.
Additionally, there is usually a time commitment involved, anything from 3-7 years, which might not be convenient for all fractional owners. How can you know your travel needs for the next 5 years? What if you find yourself needing more in-air hours or fewer? What if you will require international private jet flights and your company doesn’t cater to that need? Or what if you find the service or aircraft not up to expected standards? What can be done when you are in a long-term relationship with an expensive partner.
It is important to note as well that there is a higher cost at a higher level of utilization for most fractional ownerships, meaning those who use private jets often are not getting the best deal from fractional ownership.
But then why was fractional ownership such a huge sweep for so many years? Again, the same reason timeshares were popular – a sharing of responsibility, cost, and maintenance.
The largest change was that now there are many options for ‘sharing’ costs and maintenance responsibilities, such as the next area of private jet travel that has come up in popularity in recent years – private jet cards or loyalty programs.
Benefits of Fractional Ownership:
- Sharing of costs, responsibilities, depreciation, and maintenance
- Low costs with low utilization
Cons of Fractional Ownership:
- Long-term commitment
- Sharing availability on heavy travel dates (if you don’t fractionally own a fleet)
- High costs with high levels of utilization
- The highest cost for flyers of over 150 hours per year
- Paying for hours in addition to reoccurring ownership/management costs
- Upfront costs can be hundreds of thousands of dollars for 1/16th ownership
- Lack of flexibility for your in-air hours over the course of your time contract
- Potential lack of flexibility for international flights based on your contract
On Demand Private Jet Charters
On Demand private jet charters have been around as long as the idea of owning a private jet, however, their practices have improved so vastly in recent years that the private jet chartering business is near unrecognizable from its former self.
In large part, this is due to private jet brokerage companies getting their technology, customer services, and inventory aligned with the needs of their clientele. However, there are downsides to this seeming jack-of-all-trades, like a lack of availability if your broker doesn’t have a long reach or many contacts in the industry to call on when flights are thin.
Going along with the above, if your broker is not full-service, you might just have to book through multiple operators – costing you more of your time, effort, and energy. This is why it is imperative to find yourself working with a full-service broker who is able to find whatever you want, whenever you want it, and do it all themselves.
Benefits of On Demand Private Jet Charters:
- No investment in a depreciating asset
- No fixed costs or fees
- No contracts or time commitments
- Only pay for the hours you use
- More flexibility for changes in hours, days, number of flights or aircraft desired
- Lowest cost for flyers of 50-500 hours per year
Cons of On Demand Private Jet Charters:
- Less control over availability if your broker isn’t well connected
- Might need several operators if your broker isn’t full-service
Find Your Full Service, On Demand Private Jet Charter Company and Fly Like a Champion Today
Vault Aviation is your 24/7/365 full-service, On Demand private jet charter company. We make the entire trip, from ground transportation to air, back to ground seamless, luxurious, and fully customized.
We can get you any jet in the world available for charter. We can get you to any private or public airport in the world, and we can do it all while saving you time, money, and stress. Contact us today!
When you want. Where you want. How you want.
Fly with Vault Jet and see the difference.
Fly with us and Fly Like a Champion.