Fractional ownership of an airplane allows an individual all of the benefits, convenience, access and advantages of owning an airplane without most of the hassles of ownership at a fraction of the cost. It also provides the fractional owner and their passengers more freedom with regards to travel delays, in-flight services, itinerary and faster security checks (though no less thorough), than flying commercially. It is currently the fastest growing segment of the aviation market today.
In essence it’s a timeshare for aircraft. There are a myriad of plans available with options within them. A fractional owner would purchase a block of time that enables him or her to have access to a fleet planes – with or without pilots. The schedule of the fractional owner is based upon the individual’s personal travel and financial needs. This has the potential to be an amazing asset to those individuals ready to move to aircraft ownership without the impact to their liquidity.
However, a newly written and waiting to be issued FAA ruling will have a major impact on this kind of ownership. Part 91 of the Federal Aviation Ruling (FAR) will be revised such that a new Subpart K will be added to the existing ruling. This will differentiate fractional ownership programs from other more traditional ownership arrangement programs within business aircraft. This new rule, however, will not impact pre-existing arrangements.
If considering Fractional Ownership, and it is a wonderful opportunity to be a part of the flying community, part of the discussion to determine which plan to purchase should include a discussion with the program manager of each company during the interview process as to how this new FAA ruling could affect each person specifically. A consultation with an Aviation Tax specialist is also advisable. It is always better to be well informed prior to making such a commitment.
