Buying A Private Jet Through Fractional Ownership Agreements
Private jets are extremely expensive, even by the standards of the rich. You don’t have to own your own jet to use one, however. You can take part in what is called fractional ownership. In this ownership situation, you and a group of others will share the plane at a discounted cost.
The easiest way to share ownership of a private jet is to go to a company that specializes in the opportunity. You will find the business model to be much like a timeshare for a real estate property. A business that does these type of deals will also offer easy options in relinquishing your share in the contract, should you need to do so. When using a business to do the work, you can also work a deal into the contract where you can have access to more than one private jet in the hangar.
Fractional ownership demands that you sign a contract for a set amount of time, which acts as your lease. It’s average to sign on for five years. After the period is up, you can sell your share of the plane to another or back to the company that arranged the fractional ownership. Fees may apply, but otherwise you should get fair market value.
A business will either offer you a contract that offers you access to a variety of jets, or a single jet to be shared amongst others. If you are given access to the entire inventory of the jet charter, you will have better options in flying to discrete locations, picking a fuel efficient jet, or picking a jet with a wider range of travel. A single jet contract is more constricting.
Know that if you are looking for a fractional agreement to save money, you might be paying more for such a service than other methods. Jet charter services today have dropped in cost, and are in direct competition with the timeshare model discussed. You are still liable for fuel charges, hourly and monthly rates, and so on if you choose a fractional model.
Overall, paying more money for having a private jet is a great idea. You get to bypass long airport delays, have access to greater security, and you are able to enjoy five-star service while on the trip. The only obvious drawback would be the cost and flexibility of schedules. If these two aspects aren’t a huge factor, obtaining fractional ownership is a great method of getting a private jet.
Final Thoughts
You can have your own private jet up and running with little paperwork. So long as you are sure you have the funds, and are doing business with a reputable private jet consulting service, the process should be streamlines, fast, and even enjoyable.
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