Fractional ownership programs offer investors the benefits of full aircraft ownership at just fraction of the cost. In essence, participants purchase shares of aircrafts in order to secure a set amount of flight time proportionate to the initial investment. Initial investments may start as low as a 1/16 interest share of the aircraft and sometimes even lower. Fractional ownership programs are designed to serve the heavy travel needs of public companies, private companies and high net-worth individuals. The flexibility of these programs has spawned a new breed of executive traveler.
Being a substantially bigger investment than jet chartering, fractional ownership programs can actually be a real money saver for large corporations that have heavy executive travel needs. The decision for investment in a fractional ownership program may be facilitated by the fact that the company is in part possession of an asset which qualifies for depreciation costs and tax benefits.
Beyond the initial investment however, fractional ownership programs usually carry additional fees. Fuel costs, monthly maintenance and repair fees, staffing and catering costs are just some of the additional charges incurred by the fractional owner.