Fractional Aircraft Ownership: Determining the Ideal Aircraft

Buying a fractional aircraft share means paying for part ownership of a certain type of aircraft. You will be allocated a fixed amount of time each year, depending on the size of your share. But which aircraft is best for you?

In most programs this is measured in hours, usually ranging between 50 to 400 hours annually, with a few programs measuring usage on a day basis starting at 20 days per year.

Fractional fleet operators normally have multiple aircraft of the same type, and in the interests of operational efficiency, will bring the closest one to you to fulfil your mission. So, over the course of a typical five-year agreement you may never fly in “your” plane, which is part of a shared usage fleet.

You can buy a share of a Light Jet, for smaller trips, of an Ultra-Long-Range Jet, for regular international flying – or anything in between. Alternatively, you may benefit from buying a share in a helicopter or turboprop, depending on your mission needs.

Fractional ownership is an excellent option if you fly privately at least 50 hours per year. It allows you to enjoy the benefits of flying privately while leaving the management of the plane, including crew sourcing, scheduling, maintenance, positioning, and much more, to the fleet operator.

When buying a fractional aircraft share, you want to aim for the aircraft that suits 90% (or most) of your needs. So, if you are usually going back and forth between Manhattan and Los Angeles with about six people and some trips to Dallas and Chicago, then a Super Mid-size Jet would be a good choice in terms of range and passenger numbers.

For that one trip a year when the entire executive team of 12 flies to a site overseas, your Super Mid-size Jet will not work out. But you could charter an aircraft for that occasion or upgrade aircraft with your fractional provider for that one annual trip.

Choosing an Aircraft Type for Fractional Ownership

Several factors should be considered when selecting an aircraft that is best suited to your individual missions and needs.

Specifically, you want to make sure there is enough seating for your usual group size, there is ample capacity for all your luggage and/or equipment, and the aircraft has enough range to get you to your usual destinations, preferably non-stop.

Even with the above in mind, one answer could be “go bigger, it covers all uses”! The problem is that the bigger the aircraft, the higher the cost. The larger jet shares will cost hundreds of thousands or millions more a year to own, and flying a plane that’s too big for your needs doesn’t make much financial sense.

Value-focused buyers will therefore choose the plane that is big enough for most needs and upgrade or charter a larger aircraft for longer trips. Having said that, some people just want the extra room in a larger plane, whether purely for comfort or for health or medical reasons.

The Checklist of Passenger Requirements

The following checklist will help you figure out what type of aircraft you need (though keep in mind that a reputable fractional management company will ask you several more questions so they can fully understand your travel profile and help you select the ideal aircraft and the best overall product or product mix for your needs).

Be wary of early or quick recommendations — everyone has unique needs which your provider should take into consideration before suggesting an aircraft.

How far will you be traveling? Various planes have different ranges. Be sure to select the type of aircraft to get you to each of your common destinations.

• A Light Jet cannot do long distances, but it can connect New York City to Orlando non-stop, for example.
• A Mid-size Jet may make it across the US without stopping (if it has a low passenger count and conditions are favorable), but if your regular travel is coast-to-coast in the US, a Super Mid-size Jet will be a more flexible option.
• Larger Cabin Jets, such as the Gulfstream G500 and Bombardier Global 5000 can simply travel farther without having to stop and refuel.

How many people are in your party? Larger aircraft can accommodate more passengers and luggage, but they cost more up front as well as in monthly and hourly fees.

Roughly, how much luggage will you typically carry? Smaller aircraft such as Light and Mid-size Jets can accommodate about six to eight passengers and offer some baggage space, but realistically some of your party may have to be selective in the amount of luggage they pack.

If you will you be doing regular ski or golf trips that will need bulky equipment transported with the passengers or if you will be carrying a lot of equipment or samples for your business, these are certainly considerations that will impact the size and type of the aircraft selected.

Will you need to utilize a shorter airfield? Some airports can only accommodate planes below a certain size, depending on the length of their runway and surrounding geography.

For instance, if you have a vacation home on a smaller island or a remote country residence, the local airport may have a short runway. Or if your vacation home is in the mountains, some larger aircraft may not be certified for the local airport. Be sure your primary destination airfields can accommodate your aircraft.

Do you require any special amenities? Will you need a full entertainment center? What level of internet access will you need during your flights? The answers to these questions may point you to a larger- or smaller-sized aircraft.

Are there regular passengers who will require more space? Tall people may feel much more comfortable with more headroom. Whereas a Light Jet may have a 4.5-foot cabin height, a large cabin aircraft could have a full 6 feet of cabin height, making walking around much easier.

Another common reason for extra space is people with certain health conditions who need room for medical equipment next to them.

In Summary

For many people and companies, one aircraft type does not suit all their needs, because their trips vary over a year. The objective will be to buy a fractional share of an aircraft type that fits most needs, and then upgrade or downgrade in terms of size, when needed.

In many larger fractional programs, downgrades to smaller aircraft are guaranteed and upgrades are “as available”. If you feel you will need to upgrade or downgrade for specific missions, then choosing an operator with other sizes of aircraft will be part of the consideration set.

Reputable fractional aircraft operators will not only help you choose the right aircraft type but may also help you upgrade to a share of a larger plane, if available and needed. And as with anything in private aviation, getting advice from trustworthy experts is key before investing such a handsome sum.

NICK COPLEY is President and Founder of SherpaReport, which for 20 years, has been a comprehensive source for insider knowledge to help people make informed decisions about buying a private aircraft or investing in alternatives such as fractional ownership, jet cards and/or charters. More information from www.sherpareport.com

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