WHAT IS FRACTIONAL OWNERSHIP?
Fractional aircraft ownership offers companies and individual all the benefits of full aircraft ownership and more at a fraction of the cost of owning a whole aircraft and without the management responsibilities.
- You purchase an interest in a specific aircraft tailored to your business and/or personal transportation requirements, i.e., the number of hours you actually fly each year, where you go, how long you stay, the number of people flying, etc.
- You pay a monthly management fee to cover all fixed cost. This includes the cost of pilots, avionics up-dates, pilot raining, insurance, hangar, regular refurbishment and administration.
- You pay an occupied hourly rate each time you fly to cover direct operation cost including fuel, aircraft maintenance, landing fees, catering, etc.
- The fractional aircraft company manages your interest and provides total flight crew management, trip scheduling, ground support, catering, ground transportation, and all maintenance.
HOW TO DETERMINE IF FRACTION AIRCRAFT OWNERSHIP IS RIGHT FOR YOU
The answers to the following questions will help you determine what your best option may be:
How often do you travel?
Where do you fly?
How long do you stay?
How many people travel with you?
How many hours do you actually spend in the air every year?
A WISE USE OF CAPITAL
You are able to match your capital investment precisely to your travel requirements. For example, if you want to fly 37.5 hours a year in a Cirrus that has a value of $ 600,000 for the entire aircraft, you can purchase a 1/16 ownership interest for less than $40,000 rather than buying the whole aircraft – and save over 93% of the value or approximately $540,000. Further, your maintenance costs and hourly rates are predictable over the duration of the fractional aircraft ownership agreement and will be significantly less than if you owned the whole aircraft.
Owning an equity share in a Fractional ownership program aircraft offers many of the same benefits as whole aircraft ownership, including tax benefits. Qualified taxpayers who use their aircraft for their business use can take advantage of significant depreciation and tax savings. Contact your tax professional for additional information.
More information go to AOPA web site.
Some of the common reasons for owning a fractional airplane include:
- The ability to visit more places in much less time with on demand service, which often double or triple the number of visits per flight and still be home the same night.
- Avoiding the delay and hassle of multiple airport searches.
- Avoiding the need to arrive at an airport 2 hours before take off.
- Avoiding missed and canceled connecting flights.
- Keeping pets with you in the cabin rather than as baggage in cargo holds.
- Avoiding searches of personal baggage.
- Transportation of musical instruments or athletic or special equipment.
- Privacy during flight. No third parties to see you or overhear you or your companions.
Aerowood Aviation Broker Agreement
- Broker fees
- Pre-buyer inspection
- Handle all documents with FAA
- Pilots training
- Ferry the plane (cost covered by the buyer)
Aerowood Aviation Management Agreement
Management of the Plane:
- Insurance (Fleet discount)
- detailing and cleaning
- subscription services
- aircraft maintenance scheduling
- Pilot Services (back up Pilot)
- Usage of the plane for part 91 (reduce fixed cost)
Interested in Fractional Ownership? Fill out the form below: