Aviation Planning: Fractional Ownership vs. Charter vs. Outright Acquisition

Private air travel offers unmatched convenience and time savings, but it comes at a cost. For those seriously considering the shift from commercial to private travel, understanding the full financial picture is essential. The three main options, Fractional Ownership, Charter, and Outright Acquisition, each offer different levels of flexibility, cost, and commitment. Here’s a breakdown of what you can expect to pay and what to consider with each approach.

Fractional Ownership: Sharing the Skies

Fractional ownership allows you to purchase a share of a jet, such as a Phenom 300, with access to flight time based on your share percentage.

• 1/16th share (≈50 flight hours/year): $500K–$750K to buy in
• 1/8th share (≈100 hours/year): $1M–$1.5M buy-in
• Monthly fixed costs: $9,000–$14,000
• Hourly usage cost: $2,000–$3,000/hour
• Annual total cost (after buy-in): $110K–$200K
• Other costs: Resale commissions (~5%), fuel surcharges, repositioning fees

This option provides moderate flexibility and convenience, with less management burden than owning outright.

Chartering a Jet: Pay-as-You-Fly

Jet chartering requires no upfront investment and includes pilots, fuel, and in-flight amenities.

• Typical cost: $4,000–$6,000/hour
• Annual cost (at 50 hours/year): $200K–$300K
• Popular aircraft example: Pilatus PC-24 at $6,000/hour

Chartering is best for those flying less than 50 hours annually. Pricing can fluctuate based on route demand, airport fees, and aircraft availability.

Jet Cards: Prepay for Simplicity

A jet card lets you prepay for flight hours at fixed rates, offering predictable costs and convenience.

• Example: 25 hours for ~$100,000
• Flexibility: High, with fixed hourly rates and guaranteed availability

Ideal for light, occasional flyers who want consistency without the long-term commitment.

Full Ownership: The Ultimate Flexibility (and Cost)

Outright jet ownership gives you total control but comes with high financial and management responsibilities.

• Purchase cost: $2M–$13M+ (e.g., HondaJet, Pilatus PC-24)
• Annual fixed costs: $400K–$700K
• Variable cost per hour: $1,500–$2,500
• Estimated annual cost (200 hours): $700K–$1.2M
• Other considerations: Maintenance, insurance, pilot training, depreciation

Best suited for business owners or families flying frequently and needing maximum flexibility.

Know Your Use, Protect Your Wealth

From a financial planning perspective, your private jet should serve your lifestyle or business goals, not deplete your assets. For most individuals flying under 50 hours a year, chartering or a jet card makes the most sense. Fractional ownership can be cost-effective beyond that threshold, while outright ownership is typically only justified for heavy users or corporate needs.

Whether for time savings, convenience, or luxury, be sure your private aviation decisions are in line with your broader financial goals. A financial advisor can help you run the numbers and keep your dreams in the clouds, not your budget. If you’re considering private travel options, schedule a consultation with our team to see how it fits into your overall financial plan.