In general, all forms of aircraft ownership share a great number of benefits. When considering a specific method of ownership, however, your answers to the general questions that are listed in the section Which Aircraft is Right For You? should be used as a starting point. The three basic forms of ownership include full ownership, co-ownership, and fractional ownership, with a number of variations within each of the first two types related to how the aircraft is managed.

The following table provides a quick comparison between these three types of ownership. For more detailed information on any particular type, click on the ownership type on the left side of the table.

 

 
ADVANTAGES
DISADVANTAGES
  • Aircraft always available to fly
  • Owner only pays actual operating costs
  • Aircraft can be placed under management and made available for charter to reduce costs
  • Owner enjoys full depreciation of the asset
  • Maximum control over safety
  • Owner bears all costs of ownership, including management and maintenance
  • Potentially large capital outlay
  • Aircraft not available for use when down for maintainance
  • Reduced capital outlay
  • All operating costs shared with a partner
  • Owner enjoys 50% depreciation of the asset
  • Aircraft can be placed under management and made available for charter to reduce costs
  • Nearly maximum control over safety
  • Aircraft not available for use when down for maintainance
  • Aircraft not always available when required due to partner use
  • Aircraft availability guaranteed at all times
  • Owner may use more than one aircraft at the same time, depending on contract terms
  • All aspects of ownership and management handled by fractional provider
  • Lower capital outlay
  • Cost of taxes and fees
  • Cost of additional liability coverage not provided by fractional operator
  • Potential Primary Service Fees associated with operating outside of the owner's defined Primary Service area
  • Positioning costs for additional crew if needed in order to meet crew duty requirements
  • Possible airport surcharges for owners who frequent certain congested airports
  • Cost of exceeding leg and ground time restrictions
  • Fuel escalator clause can result in higher fuel costs
  • Sales commission and remarketing fees associated with both regular and early contract termination
  • Aircraft different from the one purchased may be substituted without consent of the owner
  • Costs asscociated with early use of time
  • Residual value of purchased share dependent on market value at contract expiration
  • Takeoff, landing and minimum time surcharges can substantially reduce available flight hours

 


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