Fractional Jet Ownership VS. On Demand Jet Charter

Fractional Jet Ownership VS. On Demand Jet Charter

When considering a private charter, fractional ownership is one of the prime options. However, it is often advantageous to consider on-demand charters. Below, we will compare the two to determine which is most beneficial for you:

Fractional Ownership and On-Demand Charter

Fractional ownership is an agreement between a management company and a defined group that shares an aircraft’s operating and maintenance expenses over a contracted period. This closely resembles a luxury timeshare in the sky.

Meanwhile, on-demand charter investment is limited to a single flight at a time, often on different aircraft. On-demand charter typically utilizes a broker to source aircraft according to the trip’s needs.

Examples of Fractional Ownership companies include:

  • NetJets;
  • FlexJet;
  • Airshare;
  • Planesense.

Benefits of On-Demand Charter Compared to Fractional Ownership

  • Upfront Costs

Fractional ownerships require a significant upfront investment in the hundreds of thousands, if not millions of dollars. On-demand charter typically has zero upfront investment.

Fractional programs require owners to share the cost of maintenance, hangar space, insurance, aircraft depreciation, etc., whereas on-demand charter only requires an all-inclusive amount for the trip.

  • Flexibility of schedule

Since fractional ownership involves sharing an asset with others, the aircraft may not always be available when needed, especially at short notice. This can cause disruptions to important schedules if another ownership party is already using the aircraft during this time.

On-demand charter allows passengers to charter anytime in almost any location, sometimes as short as a 2-hour request period.

  • Flexibility of Aircraft Type and Financial Flexibility

With fractional ownership, owners are committed to a specific type of aircraft. Using a Challenger 300 on a short flight from Florida to the Bahamas often needs to make more financial and operational sense.

Moreover, the owner is out of luck if said aircraft can’t utilize a short runway on an island. On-demand charter will allow the use of various aircraft, including turboprops or even seaplanes, when necessary.

There are many benefits to being a fractional owner, but when flexibility is required, an on-demand charter can often be the superior option.