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
January 1, 2025
Fractional jet ownership has become a popular choice for those seeking the luxury of private jet travel without the full financial burden of sole aircraft ownership.
By sharing the costs and responsibilities with other fractional owners, this model provides access to private aviation at a lower price point compared to full ownership.
But how much does fractional jet ownership really cost, and what factors influence these expenses? Here’s a detailed breakdown to help you understand the cost of fractional jet ownership and decide if it’s the right fit for you.
A fractional jet ownership program involves purchasing a share in a specific aircraft. Instead of owning the entire jet, you own a percentage, which gives you access to the aircraft for a set number of flight hours annually. For instance:
This model allows you to fly privately without the large upfront costs and ongoing expenses of owning an entire aircraft. It’s ideal for those who fly between 50 and 200 hours a year.
Fractional jet ownership costs are divided into fixed costs, variable costs, and additional fees. Here’s a detailed breakdown:
The acquisition cost is the upfront price you pay for your fractional share in the aircraft. This cost varies depending on:
The monthly management fee covers the fixed costs associated with aircraft operations, such as:
These fees typically range from $10,000 to $50,000 per month, depending on the aircraft type and fractional jet ownership provider. For instance:
A light jet might incur a monthly management fee of $12,000 to $15,000.
A large cabin jet may require $40,000 or more.
In addition to the fixed monthly fees, you’ll pay an occupied hourly fee for each hour you fly. This fee includes:
Hourly rates vary depending on the aircraft and typically range from $2,000 to $8,000 per hour. For example:
If the jet needs to be moved to your departure location, you may be charged repositioning fees. These costs depend on the distance and fuel required for the repositioning flight.
Unforeseen costs, such as unexpected maintenance or emergency repairs, may be shared among fractional jet owners. These expenses are usually covered under the fractional jet management agreement, but it’s important to review the terms.
Flying during peak periods, such as holidays or major events, may incur additional fees. Some fractional jet ownership agreements offer flexibility to avoid these surcharges, but others may pass these costs to owners.
Over time, the aircraft depreciates. When you sell your fractional share, the resale value depends on:
| Feature | Fractional Jet Ownership | Full Jet Ownership | Jet Cards/Charter Flights |
|---|---|---|---|
| Upfront Costs | Shared, starting at ~$500,000 | High, $10–$50 million | None |
| Monthly Fees | $10,000–$50,000 | Full cost of operations | None |
| Hourly Costs | $2,000–$8,000 per hour | $1,500–$4,000 per hour | $5,000–$12,000 per hour |
| Flexibility | High, with guaranteed access | High, but limited to one aircraft | Very high, flight-by-flight basis |
| Tax Benefits | Available for business use | Full tax benefits | Limited to occasional deductions |
Aircraft Type Larger jets with more passenger capacity and range cost more to acquire and operate. For instance:
Share Size The more hours you require, the larger the share you’ll need, increasing both upfront and ongoing costs.
Management Company Different fractional jet ownership providers offer varying pricing structures. Established companies like NetJets or Flexjet may charge more but offer extensive aircraft availability and services.
Operating Costs Costs like fuel prices, maintenance, and pilot training affect overall expenses. Providers may charge variable costs or apply fuel surcharges based on current market rates.
Fractional jet ownership programs offers tax advantages if the aircraft is used for business purposes. Key benefits include:
Consult with a tax professional to understand how these benefits apply to your specific situation.
Fractional ownership can be a cost-effective option for those who:
It’s less cost-effective for infrequent travelers who might benefit more from jet cards or charter flights.
When assessing costs, ask your provider about:
Review the fractional private jet ownership agreement carefully to avoid surprises.
The cost of fractional jet ownership includes upfront acquisition costs, ongoing monthly management fees, and hourly fees for flight time. While it requires a significant investment, it offers a structured, predictable approach to private jet travel, making it ideal for those with regular flying needs.
By understanding the full range of expenses and benefits, prospective fractional owners can make informed decisions and enjoy the flexibility and convenience of private aviation.
