Fractional Jet Ownership vs. Charter: Which Is Right for You?

Private jet travel is a luxury, whether you travel for leisure or business. You board the jet directly from your limousine and depart at a time convenient to you. You choose who shares your flight, while meals and other services are personalized. It is a 10/10 experience for leisure travelers and a practical, convenient choice for business clients.    

At Monmouth Executive Airport, we accommodate clients with fractional jet ownership and those who prefer private jet charter. Our world-class FBO services ensure passengers reach their destination safely, on time and in luxury. In this article, we discuss fractional jet ownership vs. charter in more detail.

What is Fractional Jet Ownership?

As a fractional jet owner, you purchase contractually defined shares in a single aircraft that allow you to occupy the private jet for a specific number of hours per year. The shares are not a timeshare as defined under FAR 91.501(c)1 and can be sold in fractions as small as one-sixteenth. All owners share the costs related to the aircraft’s ownership. 

The National Business Aviation Association (NBAA) indicates that fractional jet share ownership is generally a five-year commitment, but extensions or early-out options are available at a cost. How much does fractional jet ownership cost? There are several related expenses: 

Capital fee. The acquisition or capital fee is generally a one-time ‘buy-in’ fee that gives you fractional ownership of the aircraft at a share percentage based on the contractual agreement.

Management company fee. Shareholders pay a monthly fee to the company managing the fractional jet ownership. 

Occupied hour fee. Cost of flying the aircraft during specific occupied hours, which includes hourly costs, fuel, and crew pay.

Monthly maintenance fee. Aircraft maintenance fee that is charged proportionally to each jet shareowner.  

What is a Private Jet Charter? 

Private jet charter is the hiring of an entire private aircraft for a specific, non-scheduled flight. The aircraft is owned and operated by the charter company. Clients set their own routes and departure times, which is convenient for business and corporate travelers. 

Monmouth Jet Center at Monmouth Executive Airport offers personalized and convenient private jet charter services. We arrange private jets that accommodate up to eight passengers, and our aircraft are operated by a highly trained and experienced pilot crew. Our private jet charter service offers 2-hour departure times subject to availability, and we can depart from any East Coast airport. Worried about who will watch your dog? No problem! Pets are very welcome and encouraged on board.

Fractional Jet Ownership vs. Charter: Key Differences

Let’s look at some of the key differences between fractional jet ownership vs. charter.

Availability. Fractional jet owners are restricted to their number of allocated (occupied) hours. Charter clients hire a private jet at any time for as many flights as required.     

Financial responsibility. Charter jet clients pay only for the charter flight. Fractional jet owners pay monthly fees in addition to the actual flight costs related to their occupied hours.

Management responsibility. Fractional jet owners pay a company to manage their ownership and aircraft, while charter clients have no management responsibilities. 

Legal liability. Charter clients have limited liabilities, as the charter company carries the majority of the legal risks. Fractional jet owners are legally responsible for all aspects of ownership.

How to Choose Between Charter and Fractional Ownership? 

What would motivate someone to choose fractional jet ownership vs. charter? 

A large portion of private jet charters is for business travel, as many companies prefer not to bear the costs and liabilities associated with permanent private jet ownership. Fractional ownership might be seen as a corporate risk.  

People who select fractional jet ownership enjoy the convenience of accessing a private jet. It also offers significant tax benefits when the jet is used for business purposes, as owners can typically deduct most of their monthly fees, which lowers their taxable income. The fractional share purchase price can also be depreciated over the aircraft’s useful life.

Contact Monmouth today to book private jet charter services or to discuss how we can accommodate your fractional jet ownership travel. You can also visit us at: https://monmouthjetcenter.com/