WHO ARE SOME OF THE TYPICAL BUYERS OF FRACTIONAL INTERESTS?
Q: What was the NBAA White Paper, and why was it important? A: The National Business Aircraft Association (NBAA) hired an independent consulting company to study whether the use of business aircraft resulted in benefit to the shareholders of the company. The extent and findings of the study, published in 2001, were beyond any previous expectations. The study covered a period of 7 years, from 1992 through 1999, and 335 companies which were continuously part of the Standard and Poor’s 500. Of the 335 companies, 214 regularly used business aircraft and 121 did not. There was a 343% Return on Equity (ROE) in those companies which regularly used business aircraft, compared to only 177% among those which did not, a difference of 166% over the seven year period. Similarly, the companies that used business aircraft showed a superiority in asset utilization and EBITDA. The central finding of the White Paper was:”…business aircraft can make a substantial difference in how a company performs it
