HOW DOES “FRACTIONAL” WORK?
Q: What are the distinguishing characteristics of Fractional Ownership? A: Fractional ownership combines the ownership, usage, and maintenance of both a single airplane and a fleet of many airplanes among the many owners and lessees. Fractional ownership programs operate via a series of intricate agreements between the aircraft owners or lessees and the operator, all of which meet the varied requirements and restrictions of the Federal Aviation Regulations (“FARs”). These agreements allow one to purchase or lease a fractional interest in a single aircraft and receive on demand availability to that airplane or another from an entire fleet of aircraft on relatively little advance notice. Usage charges are based on a set “monthly management fee” reflecting fixed costs, and another fee based on hours in the air, beginning at any departure point you wish, rather than from an airline or charter operator’s base of operations. Each fractional owner has a depreciable asset on the books for tax
