Owning an aircraft outright comes with a hefty price tag, not just in purchasing but also in upkeep. There are maintenance costs, crew salaries, hangar fees, insurance and more. Fractional ownership offers a smart solution: by sharing the aircraft with others, you also share these costs. It’s an efficient way to enjoy the benefits of private flying without bearing the full financial burden.
Availability in Fractional Ownership
One common concern with fractional ownership is aircraft availability. If you’re sharing the plane with others, what happens when two owners want to use it at the same time?
Let’s break it down:
The Math of Shared Use
There are 8,760 hours in a year. If fractional ownership is optimal for those flying 50 to 300 hours annually, and you’re sharing with 3 or 7 other people (4 or 8 total shares), the chances of schedule conflicts might seem high. But in reality, it’s less likely than it appears.
- With 4 shares, each owner could theoretically have up to 2,190 hours per year (a quarter of the year) without overlapping.
- With 8 shares, it’s 1,095 hours per person.
Considering that the optimal usage is far less than these maximums, the likelihood of schedule conflicts is relatively low.
Scheduling in a Fractional ownership
Good fractional ownership programs have systems in place to manage scheduling and prevent conflicts. They often use booking systems and flexible scheduling policies to ensure that each owner has access to the aircraft when needed. In the rare event of a scheduling conflict, alternative arrangements, like sourcing another comparable aircraft, are usually part of the agreement.
The Sweet Spot for Fractional Ownership
Fractional ownership is particularly advantageous for those who fly enough to justify the cost over chartering but not enough to warrant owning a plane outright. If your annual flying hours fall within the 50 to 300-hour range, fractional ownership is likely a cost-effective and practical solution.
Fractional ownership is a smart choice for many private flyers. It offers the flexibilty and convenience of private aviation without the full burden of ownership costs. With well-managed scheduling, the concerns about aircraft availability are minimized, making it a practical solution for regular private flyers.
If it wasn’t the smart choice, why would it have been made so popular by Warren Buffet?