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  Columns > Guillaume de Saint-Bon > Private Jet Travel Is Now Possible

   Published in: January 2007
 
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Fractional Ownership
If you need to fly more than 100 hours but less than 400 per year, buying (or leasing) a fraction of a plane becomes an economical option. With an 800-flight-hour basis per plane, a 1/4th share in a plane would allow you to fly 200 hours per year, for instance.

This option makes your ownership operationally very convenient. Here again, when your aircraft is not available, you have access to similar planes fractionally owned by other participants in the programme and managed by your operator contractor. In addition, if you have unexpected needs, you can negotiate on a case-by-case basis the use of a different plane from the one you bought a fraction of.

Last but not least, your contractor operator takes full care of the in-house management of your asset (a “hassle-free solution” for a monthly management fee), which would otherwise prove to be a very heavy undertaking for you (recruiting of adequate personnel, hangaring and maintenance, etc.). It is actually important to note that, for the first time, you are actually buying an asset and should have therefore to bear certain responsibilities attached to it.

If this possibility looks like a convenient time sharing contract, the fact that you actually possess part of a plane makes your financial perspectives very different.

First, since the price of a share depends on the type of plane you opt for, you can precisely calibrate your investment to your actual needs.

Second, your overall cost is divided into three parts, spread over the years in fixed and variable parts. For instance, 1/8th of a median plane would cost you around US$ 3,000,000 for five years (including insurance and financing costs), with a one- shot payment of US$ 1,300,000 for the share, your monthly management fees of about US$ 13,500 each (you share with other fractionners), and US$ 2,500 per hour (variable), corresponding to your fuel consumption.

Third, your interest in a plane is a financial asset subjected to depreciation for tax leverage, and with a resale value at the end of your five year contract that depends on the economic conditions.

 

 
Flying in private jets is now an affordable possibility since major operators propose innovative solutions to respond to your specific needs in terms of flying frequency and predictability. Among them, find out the one matching your operational and financial requirements and go for it… indulge in luxury! End of article
 
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Guillaume de SAINT-BON graduated from Saint-Cyr Military Academy and spent 15 years in the French Army Aviation on operational assignments.

As a pilot, he was in charge of his squadron’s training, maintenance and flight security. Later responsible for the whole logistics of a 1,100-people and 80-helicopter airbase, he was the leader of a 300-people company and managed USD300 million of equipment. He participated in several NATO missions in Macedonia, Kosovo and Bosnia and had experience in both setting up and running operations & logistics for multinational helicopter fleets.

He holds an MBA from INSEAD and has since been a specialist consultant in private aviation via his company Aero Solution Consulting.



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Keywords

  • Vacations
  • Travel
  • Air Travel
  • Private Jets