Charter Vs. Fractional Jet Ownership: A Cost Comparison

By December 1, 2014Aircraft, Aviation News

fractional-jet-ownershipMany of our best clients come to us from a fractional jet ownership background. This is primarily due to the many benefits that business jet charter offers that many may not be aware of. Below we will explore the flexibility and cost savings potential of chartering a private jet over fractional jet ownership.

Flexibility

One of the biggest benefits of charter over fractional ownership is the sheer flexibility that charter offers. In a fractional agreement, it’s possible that the aircraft will be constantly moving in order to meet the travel demands of all fractional owners – making it often impossible to secure the aircraft for your own needs during the time you need it, especially with short notice and during peak travel periods. There are often minimum notice requirements outlined if the fractional contract that can be limiting for a demanding travel schedule that requires frequent adjustments. Additionally, a fractional contract will allow a specific number of flight hours per year, if your travel needs go beyond those allotted hours, it’s possible you will incur excessive penalties. It’s often up to the fractional owner to keep track of flown hours throughout the year.

These frustrations are non existent when you work with an established jet charter company. To start, you’ll have guaranteed access to several types of aircraft 356 days per year and the ability to change your travel plans on a whim – often with less than an hour of notice, so you’re never left stranded. Even better, chartering allows you the flexibility to source a specific aircraft for your changing needs. So, if you need a light jet for a quick family trip one day and a large regional jet for a company incentive trip the next, it’s no problem.

Cost

When compared to fractional jet ownership, chartering a jet can be much more economical solution. Having the ability to select the smallest, or most cost effective aircraft for each individual chartered trip is a great way to keep private aviation costs down. Additionally, when you charter an aircraft, you’ll avoid the significant acquisition cost, monthly management fees varying monthly fuel rate, and a several year-long contract that comes along with fractional ownership. By utilizing a jet charter company, you are paying for exactly what you are using at a straight hourly rate. There is no acquisition cost, no monthly management fee, and certainly no contract.

Below is an actual cost savings one of our clients realized when chartering a Citation X aircraft.

Costs

Fractional

Jet Charter

Charter Savings

Hourly Operational Costs

$11,040

$6,773

$4,268

Total Operating Cost – 300 Hours

$3,312,000

$2,031,750

$1,280,250

Total Cost – 300 Hours

$2,897,523

$2,031,750

$865,773

Are you a current fractional owner? Contact us to complete your own cost analysis, so you can see exactly what you could be saving with a jet charter company.

 

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