The old rules of fractional ownership, jet cards, and charter no longer apply

A famous pyramid has long been used in the industry to determine whether you should own a private jet outright, buy a fractional share of one, sign up for a jet card or membership, or charter ad hoc on a flight-by-flight basis. With our proprietary database of over 80 providers, over 400 program options – updated over 150 times in 2024, and our unique data-driven Decider Custom Analysis process, I can tell you that using that chart is out-of-date and can easily lead you down the wrong path.

The way it reads, if you fly over 400 hours yearly, you should own a private aircraft outright.

From 50 to 400 hours, fractional ownership is the best option, according to this high-level recommendation.

Jet cards and membership are a fit if you fly 25 to 50 hours yearly.

Under 25 hours per year, you should charter flight-by-flight.

I first saw the pyramid chart in the early 2000s.

If memory serves, it came from Marquis Jet and NetJets.

Marquis Jet sold 25-hour jet cards on the NetJets fleet. NetJets shares, which at one point were calibrated at 200 hours per year – quarter shares, hence the QS tail numbers, then started at a 1/16th-share or 50 hours.

It made sense in many ways back then.

But 20 years later, this superficial guidance is best lifted in the desk drawer.

Figuring it out

So, where do you start?

Well, the number of hours you will fly annually does matter.

However, as programs have changed, so has everything.

For example, days-based fractional ownership programs (like Airshare and SkyShare) start at 20 days per year.

Those programs could be interesting if you can gain tax benefits from ownership, even if you fly fewer than 50 hours.

The same goes for those who fly less than 50 hours, say 40 or 45 hours, but need the flexibility to book and cancel on short notice and can’t deal with peak day restrictions.

However, the drivers behind which solution is right for you are still much more nuanced.

Over 20% of our subscribers have fractional shares, and over 50% also have jet cards.

Over half of full aircraft owners also use jet cards.

For private jet owners, it can be for a variety of reasons.

They need to fly even when their aircraft is down for maintenance. They need more than one aircraft on the same day, or the aircraft they own isn’t suitable for specific missions.

For example, you own a King Air but now have a monthly coast-to-coast trip.

Since the top reason for flying privately is saving time, most users who can afford one private aviation solution can afford two, if it makes sense, much like cars in a driveway.

We also see a continual flow of full aircraft owners who want to move to fractional ownership or jet cards because they lack the bandwidth to own their aircraft, even if they have a good management company.

Leading aircraft brokers will tell you that if the airplane you buy works for 80% of your missions, you should consider it a good fit.

You can supplement it with fractional ownership, jet cards, and on-demand charter.

In my opinion, they’re right.

For many flyers, multiple solutions make sense, including a jet card and ad hoc charter.

At the same time, today, jet card programs offer fixed or capped hourly rates starting at $50,000 and $100,000, which provide these benefits and can be a good solution for somebody flying for a couple of trips per year.

There are also now formulaic options to essentially split private jet ownership.

Key Factors

Key factors are where you are going to fly, how many seats you need, what type of aircraft you want to fly on, what amenities you need, how flexible you are to avoid peak days, which peak day policies impact your flying (longer callouts, the ability to shift departures, surcharges), what type of callouts you want, if you need to change flights after booking, and so forth.

Most of all, if you are considering fractional or full ownership, you will want a lawyer who specializes in that area, as there can be tax implications based on the state in which you purchase your aircraft or aircraft share.

As a paid subscriber, the best way to determine the options that best suit your needs is to have us run a Decider Custom Analysis for you!

We can guide you down the right path based on your needs, including specific programmatic options if they make sense.

This leads to another point—you would be surprised how many 50+ hour per year flyers use neither fractional ownership nor a jet card but simply have a really good charter broker.

READ:

• 40 steps to buying your own private jet
• Co-ownership of private jets
• 16 reasons to charter flight-by-flight
• Fractional Ownership and Leases – A Complete Overview