Craft

Craft Pod is offering a new twist on fractional ownership.

It promises access to “private aviation by providing investors and flyers access to appreciating aviation assets through a unique, tax-efficient investment structure.”

Craft offers aviation access via a tax-deferred investment in its exchange fund. Investors receive a diversified ETF and private jet access.

In a 2024 interview with CH-Aviation, founder Israel Slodowitz told the website, “We’re not really in the aviation business.”

The CEO said, “We’re actually in the financial services business with a unique aviation component to it.”

He described its new program as “a piece of a mini charter business and get all the tax depreciation and other benefits that come along, including aircraft use.”

Per CH-Aviation, the model is based on a 721 exchange, also known as an umbrella partnership real estate investment trust (UPREIT), which is most commonly used by real estate investors seeking to defer capital gains taxes in the United States when selling property.

In return for contributing equities, the investor receives interest units in the umbrella partnership and becomes a unitholder.

For members, Craft offers tax deferral and the opportunity for additional diversification.

Slodowitz said, “It’s an IRS partnership agreement that, essentially, allows people to transact airplanes. Actually, they’re just selling shares of the business.”

Craft’s fleet is built on a Miami-based Part 135 operator.

Its certificate is Craft Charter, LLC.

It is building a fleet of Bombardier super midsize Challenger 300s and Challenger 350s.