Second Look at Aircraft Fractional Programs

Not long ago, aircraft fractional ownership was promoted as an attractive alternative for individuals and businesses seeking the benefits of private aircraft travel, but whose annual flight time requirements did not justify the substantial capital and operating costs of owning a full airplane or undertaking the burden of maintaining a flight department. While charter and jet card programs do not require long term commitments or initial capital investment, the lure of fractional programs was in providing the owner with access to a managed fleet of aircraft, and the ability to depreciate his or her capital investment while maintaining and, perhaps, increasing the value of the investment in a market in which private aircraft travel was in demand.