Fractional Jet Ownership & Group Purchases

Fractional jet ownership is a popular choice. For example, about 355,000 departures in North America in 2019 stemmed from fractional structures. In 2024, about 579,000 departures were fractional. 

However, fractional jet ownership isn’t the only choice. Over the last decade, fractional companies purchased just 11.4% of the total jets delivered to owners. Some consumers buy entire jets outright, and others purchase jets with groups of people they know. 

This article will explain the many ownership structures available to you, so you can make a smart choice.

What Is Fractional Jet Ownership?

In a fractional jet ownership structure, many people buy an aircraft together and share it for a term that typically lasts for three to five years. During that time, you can schedule flights on a jet and enjoy hassle-free maintenance. 

Fractional ownership is typically flexible. For example, some plans allow you to choose from a fleet of aircraft based on the needs of your trip. Others allow you to schedule trips with very little notice.

Pros & Cons of Fractional Ownership 

Fractional jet ownership is a little different than buying a jet outright, and it has other perks and drawbacks. This chart can help you understand them:

pros	cons
Cost Efficiency: You have lower initial investment compared to full ownership, with ongoing access to private jet travel.	Ongoing Costs: Monthly management fees, hourly rates, and repositioning fees can accumulate, sometimes exceeding expectations.
Access to Multiple Aircraft: Choose from a range of aircraft sizes and types to suit different trip profiles.	Availability Limitations: Aircraft may be unavailable during peak times or if multiple owners request the same type simultaneously.
Hassle-Free Maintenance: All maintenance, insurance, and operational logistics are handled by the provider.	Limited Control: Less influence over aircraft scheduling, crew selection, and maintenance standards than with sole ownership.
Flexibility: Choose how many hours you need annually, with the option to adjust or supplement through upgrades.	Exit Challenges: Reselling or exiting a fractional share can be complicated; shares may depreciate in value or take time to sell.
Scalability: You have the ability to scale up or down in flight hours or shift into different aircraft classes as travel needs evolve.	Long-Term Commitment: Contracts typically span three to five years, which may not align with changing personal or business needs.
Luxury and Comfort: Enjoy the benefits of private aviation—privacy, luxury, convenience—without managing a whole aircraft.	Hidden Costs: Extra charges for catering, de-icing, fuel surcharges, and peak-day premiums may not be clearly disclosed upfront.
Predictable Budgeting: Fixed monthly fees and standardized pricing per flight hour simplify financial planning.	Scheduling Restrictions: Peak travel periods may involve blackout dates, limited availability, or surcharges for guaranteed access.

Benefits of Fractional Ownership 

Fractional jet ownership comes with plenty of benefits, including the following:

• Lower cost when compared to full ownership. 
• Flexibility on aircraft and hours available. 
• Luxury and comfort while in the air. 
• Fixed monthly fees and standardized pricing.

Drawbacks of Fractional Ownership 

While fractional jet ownership is a good option for some people, it’s not right for everyone.

These are the drawbacks associated with this type of program:

• Potential for aircraft to be unavailable when needed.
• Less control over crew selection and aircraft scheduling.
• Long commitments that could be costly to leave early. 
• Possibility of hidden costs. 

Typical Private Jet Fractional Ownership Structures 

All fractional ownership involves sharing an aircraft with other people. However, how you share that jet can vary depending on the type of structure you choose. These are among the most common choices: 

Full Aircraft Share 

In a full aircraft share program, multiple people own a single aircraft. Each one owns a piece (or “share”) of that jet. Your contract guarantees you a specific number of hours in the air or flights you can take. 

In a typical program like this, you share the aircraft with fewer than 20 people. Your investment is high in the beginning, as full programs often involve large jets. You’ll also have fixed management fees, hourly rates, and more.

Here are key points about a full aircraft share program:

• Typical number of owners: Fewer than 20
• Costs and fees: High capital investment plus monthly fees 
• Benefits: Guaranteed access to a specific aircraft 
• Disadvantages: High upfront costs and the potential for depreciation

Multi-Aircraft Fleet Share 

In a multi-aircraft fleet share, multiple people own parts of a fleet. Instead of being tied to just one aircraft, the group owns a large suite of jets that could be put to use. That fleet could include just a dozen aircraft, or it could involve hundreds of options. 

Since you own so many aircraft with a larger number of owners, this option costs less than a full aircraft share. You may also have access to a newer fleet. However, you may still face significant costs and have less control over one aircraft you really want. 

Here are key points about a multi-aircraft share program:

• Typical number of owners: Hundreds 
• Costs and fees: Lower than a full aircraft share 
• Benefits: Flexibility across aircraft and less commitment 
• Disadvantages: Less control over a specific aircraft

Jet Card Programs 

A jet card program is a little different than the other options we’ve discussed. Instead of buying one or several jets, you’re prepaying for flight hours that happen within a fleet of airplanes. 

Thousands of people could participate in the program with you, and there’s no upfront capital investment. Instead, you’ll pay hourly rates and membership fees. Budgeting is quick and easy. 

Here are key points about jet card programs:

• Typical number of owners: Thousands 
• Costs and fees: Lowest cost of the options we’ve discussed 
• Benefits: High flexibility and low cost 
• Disadvantages: Restrictions and limits

Fractional Ownership vs. Group Purchase 

In a typical fractional ownership program, you share an aircraft (or many) with strangers. In a group purchase, you pool your resources with those you know or who have vetted. Together, you own one aircraft. 

Cost

Fractional ownership is typically much less expensive than a group purchase. That’s especially true if you choose a jet card. 

In a fractional ownership scenario, you share the upfront costs of purchasing an aircraft and maintaining it with many other people. The more you share, the lower your costs. 

In a group purchase, you’re sharing the upfront and ongoing costs of a jet with a smaller group. Typically, this means paying much more throughout the life of an aircraft. 

Aircraft Access

Sharing an aircraft automatically limits your access to it. The larger the group of people you share with, the less likely you can use a plane around the clock. After all, other people might need it as well. 

In a group purchase, you typically have much more access to one specific aircraft. You’re sharing with a small group, so you can likely use it when you want to. 

However, some types of fractional jet ownership allow you to tap into an entire fleet of aircraft. That means you might be able to schedule a flight really easily, and you can pick a different jet every time. 

Scheduling 

Some types of fractional ownership allow you to schedule last-minute flights, while others do not. If your travel plans often change, this is an important detail to understand before you sign. 

How quickly you can schedule with a group purchase depends on the rules you create. Often, it’s easy to schedule a flight quickly. Just make sure you are clear on the restrictions ahead of time.

Legal & Taxes

Element Aviation is not a tax advisor company, so we cannot advise you on specific tax implications of any choice, nor can we give legal advice. 

However, a fractional ownership system with a reputable company often has legal terms you can read and understand. In a group purchase, you make your own rules. 

The tax implications can also vary depending on the regulations specialized in your contract.

Who Should Consider Fractional Ownership of a Private Jet?

Experts say people who fly fewer than 50 hours per year often do best with jet cards, while those who fly more than 400 hours may do best in purchasing a jet outright. Everyone else does best with something in the middle. 

Consider these factors before you make a final decision:

• How often you travel.
• How long your flights typically last. 
• How much you’re willing to spend upfront.
• How much you’re willing to spend monthly.
• How involved in the operations you’d like to be. 
• Whether you want improved access to just one aircraft or plenty to choose from.
• How long you’d like to commit to a plan.

Private Jet Fractional Ownership vs. Private Jet Charters

If you’re not ready for the commitment of fractional or group ownership, consider private jet charters. With this option, you schedule and pay for just one flight at a time. 

Private jet charters provide the ultimate in convenience and flexibility. You can choose your own aircraft, departure dates, amenities, and more. It’s an exceptional way to explore the benefits of private jet travel without the risks of a long-term commitment. 

At Element Aviation, we’re more than happy to walk you through the process of chartering a jet for the first time. Try jet charters today and see what you’ve been missing.