Written by Andrew Stevens, Sales Director, JetCard by Air Partner
When it comes to private jet travel, choosing between a jet card and fractional ownership can often be a difficult decision. Both options provide access to the luxury and convenience of a dedicated fleet of private jets, however, they cater to different needs and requirements.
In this article, we explore the similarities and differences between jet card and fractional ownership programmes including some key areas for consideration, helping you choose the perfect private aviation solution.
If you are exploring these options, I imagine you already appreciate the benefits of guaranteed aircraft availability, fixed hourly rates, and preferred cancellation terms that both a jet card and fractional ownership programme provide. However, you might still be unsure which option best suits your travel requirements.
So, let us weigh up the advantages and disadvantages of both options with the end goal of helping you make an informed decision.
How many hours are you intending to fly each year?
When considering a fractional ownership or share programme, you are contractually committing to purchase a pre-agreed percentage of a specific aircraft’s annual flying hours, essentially like a timeshare in the sky.
There are minimum purchase requirements and typically this is a 1/16 share of a specific aircraft type, which means committing to 50 of the aircraft’s 800 available flight hours every year. At the other end of the scale, the maximum share that can be purchased is usually capped at 1/2 or 400 hours of flying.
However, simply meeting or exceeding the 50-hour marker doesn’t automatically make fractional ownership the right choice. As with any industry, there are significant swings in various companies' approaches and cultures, and rather too frequently I have seen providers automatically present fractional ownership proposals without thoroughly assessing whether this is genuinely the best solution.
Here at Air Partner, we do things differently and understand that each traveller has their own unique requirements. We take time to understand your travel routes, scheduling, aircraft preferences, and in-flight needs before presenting any options.
Our team, including myself, have decades of combined aviation experience between us. This ensures that any solution we recommend is perfectly suited to your requirements and most importantly entirely tailored around your travel needs.
Fractional Ownership: What is it?
When presented with a fractional programme offering my recommendation is to take time to carefully consider the following key areas:
Accurate Forecasting of Annual Flight Hours
With fractional ownership, you are contractually committed to purchasing a predetermined number of flying hours every year, whether you use them or not.
This can lead to accumulating excess unused hours if your travel needs change, or should you need to purchase additional flying hours this can often prove to be a costly exercise. Either way, miscalculations can be expensive, so it is crucial to realistically assess your travel requirements before making any commitments.
Managing Shared Ownership Demands
Multiple owners mean multiple demands, and naturally, this can cause significant stress points during peak travel seasons particularly when the aircraft have a high number of access points.
Reduced aircraft availability within a fractional fleet is a reality, often driven by the scheduling and repositioning of the aircraft, and when combined with variables such as Air Traffic Control slot approvals and crew duty limitations, the system can at times be strained to breaking point. This may result in your flight being serviced by a third-party-chartered aircraft, similar to on-demand flying, and may not always meet the specific expectations you had when investing in a fractional fleet.
Aircraft Selection and Interchange Options
Unfortunately, no single aircraft type has the ability to excel in all situations and fractional ownership automatically creates a glass ceiling when seeking alternative aircraft solutions.
When you are limited to one specific aircraft type and visiting destinations that require particular performance capabilities, or when travelling with larger groups, suddenly it can become a rather complicated conversation if your aircraft is not suitable for mission requirements. This can often lead to costly discussions with your provider when an alternative option is required, this is of course on the basis they can service the requirement.
Financial Investment and Additional Charges
The initial investment, or asset acquisition fee as it is also referred to, for Fractional Ownership can easily reach seven figures. When combined with monthly management fees, fixed occupied hourly rates when flying, and variable additional charges such as fuel surcharges and designated airport fees and taxes, the total investment can quickly snowball.
Structured Lease programmes can provide an alternative solution to successfully navigate the initial upfront investment or acquisition fee however this will require payment of an additional monthly lease or access fee (in addition to the aforementioned monthly costs) that on a standalone basis can add up to hundreds of thousands every year.
Longer-Term Commitments and the Risks
Fractional ownership contracts typically span three to five years, a commitment that collectively includes hundreds of flight hours. At the end of the term, the provider will purchase back your share of the aircraft at a depreciated price minus remarketing fees.
However, rather than having the peace of mind of a guaranteed minimum that has been financially underwritten at the beginning of the term, it is worth highlighting the repurchase value is subject to the market conditions at that time. Naturally, this could lead to the potential risk of getting back less than originally expected.
Jet card: What is it?
By comparison, a jet card is centred around providing a flexible and cost-effective entry point to unlock fixed hourly rates, the benefits of guaranteed aircraft availability, and a premium service offering. Whilst there are noticeable intricacies and variances between various providers' programmes, I wanted to share the key similarities and differences between JetCard by Air Partner and a fractional share:
Similarities
- Guaranteed aircraft availability (with some variance in minimum notice period)
- There are no charges for positioning fees or ferry flights
- Streamlined booking process with personal account management
- Preferential cancellation terms
- VIP catering and aircraft de-icing included
- Guaranteed recovery should there be an unexpected issue with your aircraft
- Genuine focus on service and long-term relationships
Differences
- All-inclusive pricing with no additional monthly management fees or supplementary fees, lease or access fees, or additional costs such as fuel surcharges and airport premiums
- Shorter-term commitments with the option to purchase additional hours as and when required
- Reduced financial investment; simply purchase a block of flying hours that remain available until fully used
- JetCard by Air Partner hours do not expire and there are no contracted terms with expiry dates
- Flexibility to freely interchange aircraft categories without penalty, with access to a global fleet from Twin Engine Turboprops to Global Cabin/Ultra Long-Range aircraft
On this note, if you would like to understand the unique differences between JetCard by Air Partner and other programmes in the market please see our comprehensive insight into our all-inclusive and industry-leading offering.
In summary, while both jet cards and fractional ownership provide guaranteed access to private jet travel, they really do cater for different needs. Jet cards tend to offer greater flexibility, lower upfront financial commitments, and are easier to financially budget. For some travellers who are not flying hundreds of hours every year and don’t want to fly on the same aircraft every single time they travel, this could be the ideal choice. Conversely, a fractional ownership programme is a fantastic way to enjoy all the benefits of aircraft ownership whilst seamlessly navigating the complexities of management and operation.
During my time in the industry, it has also been interesting to meet individuals who have significant travel requirements and recognise the strengths and opportunities of both programmes. I have firsthand experience of seeing both programmes interwoven together, and this may also be a travel solution well worth considering. This allows for the perfect blend of guaranteed availability and exacting service whilst unlocking a broader range of aircraft, greater flexibility, and a lower overall financial commitment.
In such cases, although few and far between, I always recommend spreading the commitment across multiple providers, just as you would with any sound financial investment. This strategy ensures there is both diversity and reliability, minimises risks whilst maximising benefits, and will unlock the absolute best of both worlds in private aviation.
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