Over the past half-decade, there has been a steady decline in fractional ownership and full ownership of private jets. This is for many reasons, but especially because there are more options now for private jet charters.
Many individuals are moving towards more affordable options with more flexibility and greater choice – after all, you may only want a Light Jet for one trip but a Super Midsize or Heavy Cabin Jet for another, so owning just one jet of only one size may not be the best option for your varied needs.
Full Private Jet Ownership
The advantages are clear for owning your own private jet – you own it, meaning you have full control over times, dates, customer services, amenities, personalized features, and frequency of use.
But strengths can also be weaknesses.
Whole or full ownership means you, fully own just one aircraft, and this aircraft has to fit all of your varied needs – for work, pleasure, long-haul, and short flights. This also means no multi-departures or availability during maintenance. Additionally, there are extra repositioning fees, high initial costs, steep depreciation, and very high capital at low levels of use.
So, do the positives outweigh the negatives? For some flyers, it might! But for many, full ownership is just too high of a cost for little flexibility or variety.
For some clients, whole ownership and the associated fees (anywhere from $700,000 to $4 million in maintenance and continued costs per year) are not a deterrent for the convenience and clout of having your very own private aircraft. However, for most private flyers, this is not their preferred option.
Benefits of full private jet ownership:
- Full control over your aircraft
- High levels of services, customization, and initial choice
- Low costs with high levels of use
Cons of full private jet ownership:
- High initial investment
- Aggressive depreciation
- High costs with low levels of use
- No use during maintenance
- One aircraft for all trips – short, long, international, overnight, large group, etc.
Fractional Private Jet Ownership
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.
If you are spending at the very least 100,000 dollars, then often fractional owners have difficulties agreeing on usage times, dates, and heavy-flying periods, even if the fleet is large.
Additionally, there is 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 7 years? What if you find yourself needing more in-air hours or fewer? What if you 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 and are then locked in for multiple more years at a high cost?
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.
Benefits of private jet fractional ownership:
- Sharing of costs, responsibilities, depreciation, and maintenance
- Low costs with low utilization
Cons of private jet fractional ownership:
- Long-term commitment
- Sharing availability on heavy travel dates
- Lack of flexibility for your in-air hours over the course of your time contract
- 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
On Demand Private Jet Charters
In recent years, private jet brokerage companies have found the sweet spot between technology, customer services, and inventory in order to best serve the needs of their clients. However, there are downsides to this as well, and they all stem from your brokerage and their experienced and connections in the industry.
If your broker is not full-service, as Vault Aviation is, you might have to book through multiple operators – costing you more of your time, energy, and money. 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, 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
Contact Vault Aviation for Your On Demand Private Jet Charter & Choose the Best Private Flight Option!
If you fly under 50 hours a year, fractional ownership could be a good option for you. If you fly over 500 hours a year, then fully owning a private jet might be worth the high ticket price. But for anyone between 50 and 500 hours – a private jet charter is the answer.
Want to get there faster on any private jet you want, anytime you want? Contact Vault Aviation and Fly Like a Champion on one of our On Demand private jet charters! We save you time, money, and hassle.