Fractional ownership.

What does Fractional ownership mean in practice?

Fractional ownership sits between charter and whole ownership.

A one-sixteenth share typically buys around 50 flight hours a year, an eighth around 100, on a contract of about five years, after which the provider buys the share back at market value less a remarketing fee. In return you get assured access with notice of 4 to 48 hours depending on provider, consistent aircraft and crews, and no positioning charges within the programme's service area. The costs are considerable: the capital outlay, monthly fees whether you fly or not, hourly fees, and depreciation on the share. Fractional programmes in the United States operate under Part 91 subpart K, which is a distinct set of rules from Part 135 charter, although many providers also hold Part 135 certificates. For someone flying fewer hours, or someone able to plan around empty legs, on-demand charter through a broker is usually cheaper. Fractional makes sense when reliability matters more than price.

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