31 Dec Why You Should Get a Fractional Ownership
Should You Consider Getting Fractional Jet Ownership?
As private jet travel popularity has increased in recent years, so has the number of options available to fly privately, including fractional jet ownership. You might be asking yourself, should you consider getting fractional jet ownership?
What is Fractional Ownership?
The definition of fractional ownership is the percentage amount shared of an expensive asset. Shares of the expensive asset sell to multiple individual owners allowing the fractional owners to enjoy the asset’s privileges.
Usually, in fractional ownership, a management company takes care of the asset for the owners. The owners pay a fee for the management and variable costs of using the asset.
In terms of private jet ownership, fractional ownership is in the private jet operated by an aviation company. The owners can typically use that aircraft or a comparable aircraft in the aviation company’s fleet on demand for a predetermined number of hours annually.
Ensuring crew, maintenance, insurance, catering, and other services fall under the fractional provider.
While fractional ownership in the aviation world is increasingly popular, the financial advantage still lies with renting on-demand charters.
You might be wondering how management companies handle rapid depreciation in fractional ownership situations. If this begins to happen, typically, they will see the asset as quickly as possible and distribute the proceeds back to the fractional owners.
Owners would be able to claim a capital loss and have the option to purchase a fraction of a new asset.
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How Does It Compare to Full Ownership?
Full ownership of a private jet is costly. Not only does it cost multi-millions to purchase the plane itself, but there are also additional multi-million-dollar expenses that come along with ownership.
A few of the costs you have to consider when owning a private jet include:
- Salaries for crew and maintenance staff
- Hangar costs
- Maintenance bills
- Hourly rate of flying your jet
Instead of being locked into the long-term costs associated with full ownership of a private jet, companies have been providing fractional ownership that allows owners to pay on an annual basis.
How Does BitLux Handle Fractional Ownership?
If you choose to become a fractional owner of a private jet through BitLux, you would be purchasing the share of an actual aircraft in our fleet. Shares start as small as 1/16th of an airplane and can grow from there.
Initially, we ask for a five-year commitment from you, but you can commit to more if you choose.
There will be a large amount due upfront to cover the ownership costs based on both the aircraft’s size and age. Following that will be a monthly fee covering your crew and maintenance costs, and lastly, an hourly fee charged upon each trip.
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Will I Use the Aircraft I Purchase for Travel?
Likely, you will not use the specific aircraft you purchase for travel. When you are a fractional owner, you gain access to our entire fleet of aircraft within the same or similar make as you are buying.
Although you may not ever fly on your plane, this is for your convenience as we ensure that you are guaranteed an aircraft upon giving us 10 hours’ notice. Additionally, you can expect a high-quality standard of flight and aircrew regardless of your aircraft.
Fractional Ownership vs. Private Charter
If you are looking for even less commitment than ownership, whether full or fractional, paying for a private jet charter through BitLux is another excellent alternative. You will pay for your trips on a pay-as-you-go basis.
You will also have more options available to you when flying via private jet charter, as you will have access to our entire fleet, the only limitations being your budget. Having this greater flexibility allows for guaranteed bookings within four hours’ notice.
All of our flight options, ownership or charters, offer our top-of-the-line service levels in flight and on the ground.
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Consider Fractional Ownership Today
Fractional ownership of a private jet is an excellent option for those interested in purchasing but want to avoid full ownership time and financial commitment. Do be warned that there are still high costs associated with fractional ownership, just not as high.
If you are looking for more options and flexibility, consider paying for private charters on a trip-by-trip basis. You still receive the high-quality service you do with ownership but have opportunities for significant savings and a more extensive assortment of travel options.
We reach many luxurious destinations worldwide providing best in class service for travel on a global scale. Offering everything from Private Jet, Cargo Jet, and Helicopter Charters to Aircraft Management and Placement, BitLux is a leader in traveling indulgently.