Fractional Private Jet Ownership: The New Luxury Travel Trend

In the world of luxury travel, owning a private plane is the ultimate status symbol. However, recent trends suggest that even the ultra-wealthy are reevaluating their options. Fractional private jet ownership is fast becoming the preferred choice for those seeking the epitome of personalized air travel.

According to a report by WingX, there has been a 5.2 percent increase in fractional private jet flights from the beginning of this year through September. This remarkable surge underscores a growing interest in this unique form of private jet access. Over the past four years, fractional jet flights have outpaced the growth of charter flights and corporate-owned jets.

A Shift Towards Fractional Ownership

Richard Koe, the managing director of WingX, notes that the shift towards fractional ownership is not uniform. Some travelers who explored charter flights during the pandemic have now made the leap to fractional ownership. This transition offers them greater flexibility and access to private jet travel.

Conversely, some business travelers have opted for fractional jets to enhance privacy, avoiding the scrutiny associated with corporate-owned jets. The fractional ownership model allows individuals to purchase a fraction of a plane, often as small as 1/16th, in exchange for flying time.

The Financial Consideration

For example, owning a share of a mid-size Challenger 3500 may cost around $1.7 million and provide 50 hours of flight time annually. To this, one should add a monthly fee of $20,000 and an hourly flying cost of $6,000, as reported by Nick Copley, president of the luxury website Sherpa Report. While this might seem substantial, fractional jet companies manage all aspects of plane ownership, including pilots, maintenance, insurance, fuel, and hangar space.

In contrast, direct plane ownership could entail costs ranging from $700,000 to $4 million, based on data from Vault Aviation as cited by Bloomberg.

A Post-Pandemic Phenomenon

The rise in fractional ownership is not merely a coincidence. During the pandemic, private travel became increasingly popular as a way to avoid crowded airports and travel at one's convenience. Although demand for some fractional companies dipped during the height of the pandemic, interest remains on the rise.

Companies like Flexjet and NetJets currently have waiting lists, indicating the strong allure of fractional jet ownership. As Kenn Ricci, the owner of Flexjet, puts it, "It's like trying to get into a country club, and they tell you, 'Sorry, we have a waiting list.' Well, that's the club you want to get into."

For those fortunate enough to gain entry into the world of fractional jet ownership, long security lines and uninspiring airport food become a thing of the past.