owning a jet

What Is Fractional Jet Ownership?

What Is Fractional Jet Ownership?

Fractional jet ownership is perfect for many private flyers who want the luxury and convenience of owning a private jet but don’t want to pay for the full costs of sole private jet ownership. By joining a fractional jet ownership program, you can get the many benefits of private flying without the full expenses of purchasing an entire private aircraft. As a fractional aircraft owner, you can customize how much of the aircraft you own to match your private flying needs and spread costs among other owners.

If you’re interested in fractional jet ownership, learn more about how it works, its benefits, the costs associated with it, and information about when it’s right for you. You may also want to review the main documents required for fractional jet ownership and some popular alternatives to jet sharing.

How Fractional Jet Ownership Works

How Fractional Jet Ownership Works

Fractional jet ownership refers to a form of professionally managed aircraft co-ownership. When someone wants to participate in a fractional jet ownership program, they’ll purchase a share of the jet, giving them partial ownership over the aircraft.

This share gives them an allotted amount of occupied hours per year that they can use to fly the aircraft. The flying time usually ranges between 50 and 400 hours, and most fractional jet shares will come in a multiple of 1/16th.

When you enter into a jet sharing program, you’ll most likely need to sign an aircraft management agreement lasting for multiple years. You should also know that you may not use the plane you specifically own every time you fly. In fact, it’s possible you may not ever step foot in it. Instead, the company running your fractional jet program will usually have a fleet of similar aircraft available for use, bringing you the closest one as needed.

How Do Fractional Jet Shares Work?

If you want to understand fractional jet shares, you should first know that a fractional plane’s operating time is generally a total of 800 hours per year. Since a fractional jet has 800 hours available per year, an owner’s share will represent a fraction of that number. For example, a 1/16h share will translate to the owner receiving 50 hours of flying per year.

Other popular shares include a 1/8 share equal to 100 hours, a 1/4 share equal to 200 hours, and a 1/2 share equal to 400 hours. Usually, you won’t see shares less than 1/16, as anything under 50 hours usually doesn’t justify the cost. Overall, you can expect higher costs for shares that come with higher hours. Additionally, you may find fractional jet ownership shares that go by the number of days you plan to use the jet rather than hours.

Benefits of Fractional Jet Ownership

Benefits of Fractional Jet Ownership

Compared to full aircraft ownership, fractional jet ownership comes with several advantages that many flyers love. Some of the primary benefits of partial jet ownership include flexible availability, greater privacy, multiple jet options, and personalized investment opportunities. These advantages make fractional jet ownership an excellent travel solution for many flyers.

Here are some additional benefits of fractional jet ownership:

  • Flexible availability: When you’re a fractional jet owner, you usually have aircraft ready for you quickly. Most fractional providers can have an aircraft ready in only a few hours. If you need flights fast, fractional jet ownership can be a great choice.
  • More depreciation deductions: If you use your jet for business flights, you may be able to utilize depreciation deductions related to owning the jet that are not available when chartering. This ability to use depreciation deductions can give owners some tax benefits.
  • Multiple jet options: After purchasing a fractional jet share, you can often use multiple jets of the same type — even if the particular jet you own a share in is at another location while another owner uses it, you still have a jet available for you to fly on. Some fractional jet share programs also allow you to use different jets comparable in size and type to the jet you own fractional shares in.
  • Personalized investment opportunities: When you know you won’t need a personal jet year-round, you’ll love how customizable jet share programs are. You can choose various share options to purchase the number of hours you know you’ll need during the year, with some plans allowing you to bank unused hours over your contract’s length. This level of personalized investment allows you to see the benefits of jet ownership without the higher costs related to purchasing an entire jet.
  • Greater privacy: Flying on a private jet gives you the ultimate in privacy whenever you need to travel. Additionally, since the jet is registered under the fractional company’s name, your travel will stay out of the limelight, as your name won’t be attached to your flight activity on publically available data sources.
  • Reduced flying costs: Fractional jet ownership provides owners with the comfort, convenience, and time-savings of flying private without as many expenses related to owning a full jet. As a fractional jet owner, you won’t have to pay for an entire jet, and you’ll avoid paying the full costs associated with a jet’s services, maintenance, and crews. These reduced financial responsibilities make fractional jet ownership very cost-effective for many flyers.

What Are the Costs Associated With Fractional Jet Ownership?

While you’ll see reduced costs when you choose fractional jet ownership instead of full jet ownership, you’ll still have some expenses you should be aware of. Before you decide to purchase a share of a jet, it’s crucial to understand what costs you’ll be responsible for.

To give yourself more information on the expenses associated with jet sharing, review the main fractional jet ownership costs below:

1. Acquisition Cost

When you first purchase a share in a jet, you’ll have to pay an acquisition cost, otherwise known as a capital fee. These fees will be directly tied to how large your share in the jet is and the type of aircraft you’re purchasing.

For example, a share in a smaller jet will often cost less than a share in a larger one. You might find that a 1/16 share in a smaller jet may only cost a few hundred thousand dollars, while a 1/4 share in a larger business jet might come with a cost in the millions.

2. Monthly Management Fees

Management fees include fixed costs related to owning a jet, such as insurance, comprehensive pilot training, aircraft subscriptions, and administrative expenses. They also include paying for hangar space while the plane is not in use and is being stored.

As a partial jet owner, you won’t have to pay for the full amount of management fees related to owning an entire jet. The cost of your monthly management fees will come down to your share’s size. So, someone with a 1/4 share will pay more than an owner with a 1/16 share of the same jet.

3. Occupied Hourly Fee

Along with management fees and acquisition costs, you’ll also have to cover an occupied hourly fee. This fee includes costs related to in-flight catering, the crew’s wages, fuel, maintenance, and engine reserves. Essentially, the occupied hourly fee relates directly to any expenses incurred while using the jet. Since you may take shorter or longer trips and have different in-flight catering needs, these fees vary based on your particular requirements.

When Is Fractional Jet Ownership Right for You?

When Is Fractional Jet Ownership Right for You?

Knowing if jet ownership is right for you often comes down to how much you plan to use a jet per year. The general rule of thumb across the industry is that fractional jet ownership is only cost-effective if you use a jet at a minimum of 50 hours a year.

Essentially, using the jet less than 50 hours wouldn’t justify the jet’s cost, and it might be better for these types of private flyers to charter flights instead of purchasing shares. Of course, if you need to use a jet for more than 50 hours a year, fractional jet ownership is likely an excellent option.

You should also be comfortable with the jet type you purchase. Private flyers who often travel with different sized groups may want to avoid buying a fraction share, as the jet you purchase a share in may not have the capacity you need for larger groups. Fractional shares are often a better option for people who don’t plan to have much variance in the number of passengers they normally fly with.

How Do Fractional Jet Agreements Work?

When you enter into a fractional jet agreement, you’ll have a few documents you’ll need to sign and agree with.

1. Binder or Deposit Agreement

A binder agreement, or deposit agreement, refers to a provider’s document requiring a buyer to place a deposit before they hold the buyer’s share. A binder agreement guarantees the owner’s pricing won’t change, states a firm delivery date, and identifies the particular aircraft the buyer is purchasing a share in. The agreement should also let the buyer know when their deposit becomes nonrefundable.

2. Purchase Agreement

The purchase agreement is a document the buyer uses to purchase their fractional shares from a provider. This agreement covers the provider’s warranties and representations related to the aircraft’s condition and title. It also lays out how the provider will repurchase your share after the agreement, as well as terms and fees related to leaving your agreement early.

3. Master Dry Lease Exchange Agreement

A master dry lease exchange agreement dictates the relationship between the aircraft’s fractional owners. This agreement usually has every owner sign off on other owners using their aircraft. By signing this document, owners also receive the ability to use the provider’s fleet in place of the aircraft they own a share in.

4. Management Agreement

In this agreement, the buyer agrees that the provider will serve as their aircraft’s manager and fractional program’s administrator. The agreement covers how many hours the owner can fly, their flying costs, and when they can fly. These agreements can also stipulate how rollover hours work, the owner’s right to interchange, where owners can fly, and peak travel days when the owner will have more restrictions. Additionally, it will explain how the provider calculates flight time and how far in advance you have to reserve the aircraft.

Are There Alternatives to Fractional Jet Ownership?

For some buyers, fractional jet ownership isn’t right for their flying requirements. Luckily, buyers can choose from several alternatives that may fit their needs more closely. Find out more about the alternatives to fractional jet ownership below:

  • Purchasing a jet: If you fly frequently and don’t want any restrictions on your flying, purchasing a private jet is a great investment. When you own a private jet, you can fly as much as you’d like and change your schedule at any time. Many buyers also enjoy owning an entire jet, as it can be an investment opportunity. They can sell it back later and even rent it out to other flyers to make a profit.
  • Private jet leasing: When you’re not sure if you want to own a jet, a private jet lease is an excellent choice. With a lease, you essentially rent the aircraft for a specified period of time and sell it back to the leasing company at your contract’s end. Leasing a private jet can give you plenty of information about whether you want to eventually own a jet and help you make an informed buying decision. Private flyers also enjoy leasing because they can switch to another plane when their contract ends.
  • Jet cards: Another popular alternative to fractional jet ownership is purchasing a jet card. These cards allow you to buy a set number of flight hours in bulk, allowing you to save on costs compared to individually purchasing a flight every time you need a private jet. If you purchase a jet card, you’ll prepay for a number of jet flights, with the card’s terms guaranteeing availability and a fixed hourly rate. Hourly rates for jet cards are higher than fractional ownership, but they do not require as large of an upfront capital outlay.
  • Aircraft charters: When you only fly occasionally and don’t want any long-term commitments, chartering an aircraft is a great decision. Since an aircraft charter is only a one-time expense, aircraft charters don’t require you to place a large sum of money down up front, and you won’t pay ongoing fees. Additionally, aircraft charters allow you to choose various types of jets each time you fly, giving you the flexibility to select the right size and type of jet for your needs.

Explore Jet Chartering and Transaction Services From Latitude 33 Aviation

Explore Jet Chartering and Transaction Services From Latitude 33 Aviation

At Latitude 33 Aviation, we’re ready to give you the ultimate in private flying luxury. We regularly provide our buyers with jet acquisition and brokerage services, as well as extensive aircraft management and private jet charter services. We also have a premier aircraft fleet made up of light, midsize and heavy jets, with every charter aircraft option offering an upscale and lavish experience.

Request a quote to charter a private jet today. If you’re interested in owning a jet, please feel free to inquire about our sales services.

It’s a Hot Summer for Private Aircraft Sales

There are many reasons why you or your company may be considering aircraft ownership if you are flying more than you anticipated this year. Summer travel continues to be a hot topic with all the uncertainty as the world opens back up. Major airlines continue to change schedules and drop routes. Commercial flights are fully booked with hundreds of passengers and thousands of touch-points you come in contact with during your entire flight process. Private jet charter welcomed many first-time flyers during 2020. Brokers, operators, and jet cards are introducing more blackout days, fully booked schedules on peak charter days, and higher fees. Increased booking windows and less availability of select aircraft are making an impact on the type of plane and experience you have come to expect. As the demand for travel significantly increased, so have private aircraft sales.

As a private jet owner, you are in control of the schedule, destination, and passengers on board – all without the wasted time waiting in long queues or navigating through crowded major airports.

Your aircraft is available whenever you want it, on your schedule.


Tax Benefits

Potential for significant tax savings, including up to 100% bonus depreciation.


Enjoy minimal touch-points, travel with only the passengers you choose, and have control over your aircraft’s schedule and availability.

Cost of Ownership

Managing your asset and planning for the future.

Tax Benefits


If your plan is to use your jet primarily for business, there are some potential tax benefits that can help offset the costs of the initial investment. On average, these deductions go above and beyond to help justify the sizable upfront purchase price.

Previously, businesses were able to recover up to 70% of a factory-new jet’s initial cost within three years time, based upon a disparity between the asset’s real-life rate of depreciation and accounting. In addition, a “bonus depreciation” was possible to speed up defined depreciation rates upwards of 50%. However, tax reform passed in late 2017 allows the potential for 100% bonus depreciation for the aircraft in the first year and applies to both new and used aircraft – a key benefit to those who can take advantage of the change. This means that after a business purchases a private jet, it can potentially depreciate the full purchase price of the aircraft immediately. Keep in mind, these potential tax deductions don’t apply to recreational/personal use of the aircraft. It is uncertain how long these tax incentives will remain in place, so many would-be aircraft buyers are choosing to take advantage of these current benefits before they go away.*



With the purchase of your own private jet, you can ensure a level of confidentiality and security above all other forms of personal or business travel. Whether it’s required due to your industry or a personal preference, owning your own aircraft places you in control of your personal and private travel requirements. Normally common among high-profile business professionals and celebrities, private jet travel is now becoming more widespread as privacy and personal information concerns are on the rise.


Private jet travel is extremely safe, but not all companies invest in the same level of standards. You want to work with a company like Latitude 33 Aviation who is among the top five percent of U.S. private jet charter operators to achieve the stringent ARGUS Platinum safety rating. However, safety concerns expand beyond the aircraft. You may have allergies or want to ensure a completely risk-free environment. You may experience sensitivities to perfumes or strong odors or have a compromised immune system. Perhaps you are concerned about your pet’s safety during flights or wary of not having the freedom to bring them along with you when traveling. Private jet ownership offers you the safety and convenience of controlling your surroundings by traveling consistently on your aircraft which is important for those with health concerns.


Accessibility is a huge deciding factor and an added plus for private aircraft owners. Are you having a difficult time securing an aircraft for your private charter flights? Are your charter rates or jet card rates continuing to climb? Are holiday and peak travel period surcharges exceeding your planned budget? Then ownership of a private aircraft is a perfect solution to remove limitations of accessibility for your personal or business life. Whatever your reason, owning a private aircraft will always supply the greatest opportunity for privacy, comfort, and flexibility. These preferences are major factors influencing the decision for many clients to move from chartering to private jet ownership.

Cost of Ownership


Attempting to become a jet expert overnight and purchasing an aircraft unassisted alone can be risky. Latitude 33 Aviation will help you select the perfect aircraft for your specific needs and introduce you to the latest aircraft models by industry-leading manufacturers. Whether you are looking for an all-new private jet or pre-owned aircraft for sale, our aviation company based out of Southern California walks you through the selection process to maximize your investment and minimize your risk. In some cases, the cost of ownership could possibly cost less than chartering or being a jet card member depending on your amount of travel.

When purchasing an aircraft, there are five primary categories of planes to choose from. The category is determined by factors like maximum range and passenger-carrying capacity:

Determining which aircraft category is right for you depends on various factors of your travel requirements. Are you traveling for business or pleasure? How many passengers do you normally travel with? How far away are your frequently traveled destinations?

 For example, if you fly shorter local trips between 100-600 miles, a turboprop is a good choice. However, if you travel with a larger party of 11 or more passengers and want to cover longer distances nonstop, then a heavy jet is best-suited for that mission.

If you are thinking about buying a jet to charter out or for personal use, it’s best to include the following in your thought process: average trip length, typical and maximum number of passengers that will be flying, potential savings from chartering, factory-new or pre-owned aircraft, desired acquisition budget, etc.

Finding a private jet to purchase can be a daunting task to pursue alone. It will most likely have you wondering if you’re vetting out all the best aircraft on market or getting a good deal as there are few aircraft valuation tools that are easily accessible. Latitude 33 Aviation makes the entire aircraft purchase process seamless and enjoyable for a buyer. Our dedicated in-house aircraft market intelligence team will build a custom aircraft market report with curated jet options aligned to your specific needs and preferences. Our data is based on a proven mix of real-time market updates, industry trends, market reports, realistic cost of ownership, aircraft history, and comprehensive investigative research. This allows you to make an informed and confident decision on the purchase of a factory direct acquisition or a pre-owned private jet. Information in these reports include the aircraft’s manufacture year, serial number and registration, aircraft location, total number of airframe hours, days on market, condition of paint and interior, pricing expectations, and more. Our experts are upfront about the condition of each aircraft for sale, as we closely analyze maintenance history and inspection reports for a sound purchase. We will also assist with negotiations, inspections, FAA documentation, closing, and delivery of your new aircraft. 

After purchasing an aircraft, there are ongoing costs for managing your private jet. These costs include but are not limited to hangar fees, fuel, landing fees, catering, hull insurance, liability insurance, crew and/or crew training, and average maintenance for parts and labor. When purchasing an aircraft, it is important to understand the total cost of ownership by evaluating not just the acquisition cost but also those for ongoing operations.


Latitude 33 Aviation is a fixed-fleet operator – not a broker, jet card, or app on your phone. We manage one of the newest and largest fleets of light, midsize, super-midsize, and heavy jets in North America. With over 120,000 hours of operational experience, we leverage our expertise to help you acquire the right aircraft that aligns with your mission profile and helps you gain the most out of your private jet asset for your business, family, and lifestyle. Deploying our management services will simplify the ownership experience and reduce your costs with fleet discounts, significant buying power to save on fuel, maintenance, subscriptions, and more. We understand details matter at each phase of the process – cash flows, account reporting, fuel savings, training, maintenance, and a flight crew that allow you to focus on what matters most to you. Let Latitude 33 Aviation help you make the most of your valuable time.

 Ready to purchase an aircraft?

At Latitude 33 Aviation, we are glad to help you through this process. Leverage an industry-recognized group of experts delivering professional, full-service private aircraft sales and acquisition services. Latitude 33 will handle every aspect of the private jet acquisition process for you including market analysis, aircraft selection, contract negotiations, legal and tax referrals, facility selection, on-site pre-buy representation, and jet pilot mentoring. We will gladly answer any questions and help you through the acquisition process. There has never been a better time to start the buying process than right now.

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