up to 14 Passengers
Global 6000
Global 7500
up to 11 Passengers
Challenger 600
Falcon 900
up to 8 Passengers
Challenger 350
Falcon 50
up to 8 Passengers
Hawker 750
Praetor 500
up to 6 Passengers
Beechjet 400A
Hawker 400XP
up to 60 Passengers
Avanti P180
Pilatus PC-12
April 18, 2025
If you're considering fractional jet ownership, understanding the terminology can feel like learning a new language.
This guide breaks down the key terms related to fractional ownership programs, helping you navigate the process with confidence.
Let’s dive into the essential terms that every prospective fractional jet owner should know.
Fractional ownership means buying a share of an aircraft instead of owning the entire jet. This allows multiple people or businesses to split the acquisition cost, monthly management fees, and fixed costs like maintenance and insurance. Each fractional ownership share comes with a set number of flight hours per year.
This is a type of fractional ownership specifically for private jets. It provides access to a private aircraft without the financial burden of full jet ownership. A fractional jet owner enjoys many of the same benefits as owning an entire jet but at a fraction of the cost.
A fractional jet ownership program is managed by a management company. They handle everything from scheduling and maintenance to crew hiring and operational logistics. Companies like NetJets and Flexjet are well-known fractional providers offering access to a fleet of multiple aircraft.
Your fractional share determines how much of the jet you own and how many flight hours per year you’re entitled to. For example, a 1/16 share might give you 50 flight hours annually, while a 1/8 share provides 100 hours.
These fees cover the fixed costs of maintaining and operating the aircraft. They include expenses like crew salaries, hangar space, insurance, and routine maintenance. Monthly management fees are split among all fractional owners.
This is the cost you pay for each hour the jet is in use. The occupied hourly fee includes expenses like fuel, catering, and landing fees. Rates typically range from $2,000 to $10,000 per hour, depending on the aircraft type.
In fractional aircraft ownership, you own a legal share of the jet. Unlike leasing or chartering, this provides equity, potential tax benefits, and resale value if you decide to sell your share.
A management company oversees the operation of the jet. They handle tasks like maintenance, scheduling, and hiring pilots. This ensures the aircraft is always in top condition and ready for use by fractional owners.
These are expenses that remain consistent regardless of how often the jet is used. Examples include insurance, pilot salaries, and hangar space. Fixed costs are divided among the multiple owners in the fractional jet program.
As an aircraft owner, you may qualify for depreciation deductions on your taxes. This applies to the jet’s value over time and can help offset the fractional jet ownership costs.
The acquisition cost is the upfront fee paid to purchase a fractional ownership share. This varies based on the aircraft type and the size of the share. For example, a 1/16 share in a light jet might cost $500,000, while a share in a larger jet could be over $1 million.
The number of hours you can use the jet annually depends on your share size. If you need more time, you can often purchase additional flight hours or upgrade your share in the fractional ownership agreement.
This agreement allows fractional owners to exchange flight time on one aircraft for time on a different jet within the program. It provides flexibility if you need a particular aircraft for a specific trip.
A master dry lease exchange is a broader version of the dry lease agreement, enabling the swapping of flight hours between fractional providers or across fleets of multiple aircraft.
This refers to owning the entire aircraft outright. While it offers complete control, it also comes with higher costs and responsibilities compared to fractional jet ownership.
This is the legal contract between you and the management company. It outlines the terms of your ownership, including the number of flight hours, management fees, and responsibilities.
Full ownership provides total control over a jet but involves significant costs, including maintenance, insurance, and operational management.
Fractional ownership offers shared expenses and access to a fleet of jets, making it more practical for those flying fewer hours annually.
As a fractional jet owner, your share has a resale value. You can sell it back to the provider or another buyer, although the value may depreciate over time.
The cost of storing the jet when it’s not in use is included in the monthly management fee. This ensures the aircraft is securely housed and maintained.
Owning a share in a jet can offer potential tax benefits, including deductions for depreciation and operational expenses, depending on how the aircraft is used.
Many programs allow you to request a particular aircraft for your trips, ensuring you get the most suitable jet for your needs.
Your ownership share determines how many flight hours per year you can use. Additional hours can often be purchased if needed.
This is a portion of the management fee allocated for maintaining and replacing the jet’s engines when necessary.
Fractional ownership is ideal for those who fly frequently, typically 50–200 hours per year, as it offers consistent access and cost savings compared to full ownership.
The overall costs include the acquisition cost, monthly management fees, and occupied hourly fees. While higher than a one-time charter flight, these costs are shared among multiple owners, making it more affordable than full ownership.
Understanding these essential terms is key to navigating the world of fractional jet ownership. Whether you’re a frequent traveler exploring the benefits of shared aircraft ownership or evaluating the costs of joining a fractional jet ownership program, knowing the terminology ensures you’re making informed decisions.
By choosing the right fractional ownership program, you can enjoy the convenience and luxury of private jet travel without the responsibilities of owning an entire aircraft.
