April 05, 2020

FRACTIONAL VS WHOLE AIRCRAFT OWNERSHIP

When considering ownership of a private jet, you have two options: fractional ownership or whole ownership. Fractional ownership requires less of an initial and ongoing investment, while whole ownership provides complete control and a more personalized experience in private aviation.

EXPERIENCE: DIFFERENT AIRCRAFT & TEAM VS. SAME AIRCRAFT & TEAM EVERY TIME

When deciding between fractional and whole ownership, your private jet travel experience is a critical factor. These two options provide very different flight experiences.

Fractional Jet Ownership: Varying Experience

Though fractional jet ownership is the cheaper option for private jet travel, it comes at the expense of your experience. With fractional jet ownership, you may never fly on your actual aircraft, you never see the same pilots, and you don’t have a customer service team to assist you with any of your flight needs.

Whole Aircraft Ownership: Consistent Experience

When you fully own your aircraft, you have complete control over your private jet travel experience. Whole ownership allows you to fly whenever you want, with the same pilots, on your actual aircraft, and with a dedicated Jet Linx customer service team to assist you.

AIRCRAFT PERSONALIZATION: SHARING VS. CUSTOMIZING

Those with whole aircraft ownership often prefer to customize their jets to suit their needs and make their private jet travel experiences more comfortable. But with fractional ownership, you lose the ability to personalize your aircraft because you share with other owners.

Fractional Jet Ownership: Sharing with Other Owners

With fractional ownership, any changes you want to make to the features of your aircraft have to be approved by all of the other fractional owners. And even if you do personalize your aircraft, you may never actually fly on your own aircraft when you’re a fractional owner, so you don’t get to reap the benefits of customization.

Whole Aircraft Ownership: Designing Your Own Aircraft

Since you own your aircraft entirely, you can personalize it however you want. You can change the interior design, and you can add Wifi and other creature comforts. This can also help with your aircraft’s resale value, as you’re maintaining and updating it with sleek new features.

COST: NO ROI VS. REVENUE GENERATION

Cost is a critical component when choosing fractional jet ownership or whole aircraft ownership. Both options have an initial investment and ongoing management fees, but only one option allows you generate a return on your investment.

Fractional Jet Ownership: Pay for Share, Flight Hours, and Maintenance

Fractional ownership comes with the same basic costs as whole ownership but less based on the share of the plane you own. Though this might seem appealing for those who aren’t sure about making the large investment that whole ownership requires, there are some major disadvantages.

You’re often purchasing your share higher than market price. When it comes time to sell your share, you’re going to sell it for market price, meaning you’ll be losing more money than you should on your investment. In addition, you often have to pay a remarketing fee when your share is sold.

If you don’t think whole ownership makes sense for you, we suggest evaluating the differences between our Jet Card program and fractional ownership.

Whole Aircraft Ownership: An Investment That Provides Savings & Returns

Being the whole owner of a private jet does require a large initial investment and includes ongoing management costs. These costs are larger than the costs as a fractional owner since you’ll be responsible for the costs of the entire plane. But Jet Linx provides an advantage for whole owners that can bring cost of ownership down to that of a fractional program.

Through our Aircraft Management and Jet Card services, we give aircraft owners the ability to save tens of thousands annually and generate revenue through their investment.

Our turnkey Aircraft Management solution takes maintenance to the next level, which keeps your plane flying and cuts down on major maintenance costs. Another benefit aircraft owners enjoy with Jet Linx is our national fleet buying power. We help our clients save on fuel costs as a result of our fleet size and the partnerships we’ve formed.

But we don’t stop at cost savings. Our Jet Card program allows you to add your aircraft to our fleet, making it available to our Jet Card members. This Jet Linx-controlled revenue stream allows you to generate return from your investment while you’re not using the aircraft.

THINGS TO CONSIDER WHEN MAKING YOUR DECISION

When weighing your options between fractional ownership or whole ownership, there are a few major things to consider:

  • Do you want a personalized private jet travel experience?
  • Do you want the ability to generate revenue from your investment?

If you prefer to have a better private jet travel experience and make an investment that can provide revenue opportunities, then whole aircraft ownership is your obvious choice.

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