Aircraft Charter, Aircraft Ownership, or Fractional Ownership?
At Sunwest Aviation, we’re often asked about different private aviation options. These include aircraft charter through on-demand charter or charter memberships (jet cards), fractional ownership (where you own a share of an aircraft), or aircraft ownership (where you own the entire aircraft).
We’ve summarized the advantages, considerations, and investment requirements for each of these private aviation options below. And we have also included a few useful questions to consider while you review your options:
- What distance will you be travelling?
- Different aircraft have different ranges. If you require flexibility, charter (or a combination of charter and ownership) might be the best option for you.
- How many people will you fly with?
- Aircraft with larger cabins and capacity can accommodate more passengers but are also more costly. Chartering mitigates this risk by allowing you to select an aircraft that matches your passenger needs.
- Will you need access to short airstrips?
- Certain airports can only accommodate aircraft under a certain size. Finding a single aircraft that meets all these check-boxes can be challenging.
Summary
Aircraft Charter
- Access to the entire fleet. Select the aircraft that best fits your needs.
- Charter memberships provide additional benefits and improved rates.
Aircraft Ownership
- You
own the aircraft and contract a management company to operate and maintain your
aircraft.
Fractional Ownership
- You
purchase a share of an aircraft. Typically a quarter, an eight, or a sixteenth.
Advantages
Aircraft Charter
- No
capital expenditure.
- Pay
for actual utilization.
- Access
multiple aircraft types; select best aircraft for your trip.
- You
do not overpay for larger aircraft than required.
- Aircraft
available in as little as 3 hours.
Aircraft Ownership
- Select
and own your preferred aircraft type and personalize to your taste.
- Access
to your jet any time.
- Appropriate
for high utilization requirements.
- Fly
under private aviation rules which allows for greater flexibility for
international trips.
- Potential
tax advantages.
Fractional Ownership
- Charged
for occupied hours only.
- Standardized
aircraft and fleet.
- Fly
under private aviation rules which allows for greater flexibility for
international trips.
Considerations
Aircraft Charter
- You
may not always have access to the specific aircraft desired.
- On-demand
charter does not require an upfront long-term commitment.
- Charter
memberships require a one year commitment.
Aircraft Ownership
- High
capital expenditure.
- Aircraft
will be unavailable when maintenance is required. This gap can be filled with
charter.
- Long-term
commitment.
Fractional Ownership
- High
effective hourly flight cost.
- Highly
utilized aircraft will see increased depreciation and can experience difficulty
in future share resale.
- You
are not guaranteed the exact aircraft of your choice; another owner might be
flying when you need to.
- Long-term
commitment.
Investment
Aircraft Charter
- Your
expenses will be based on your flight time.
- Charter
memberships require annual deposit levels to match expected utilization.
- The
Sunwest charter membership allows you to carry over a portion of unused
deposit.
Aircraft Ownership
- Owner
is responsible for fixed and variable costs.
- Owners
who manage with Sunwest Aviation, can opt to charter their aircraft when they’re
not flying to offset costs.
- Managing
with Sunwest also allows you to benefit from our economies of scale. We have the
facilities, equipment, safety protocols, and trained professionals to manage
your aircraft appropriately and cost effectively.
Fractional Ownership
- Purchase price and fixed costs based on fraction of ownership.
- Also responsible for variable costs.
Interested in learning more about private aviation and which option will work best for you? Please contact us to speak with one of our aviation consultants.
Additional information can
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