Private jets promise freedom and excitement. This is the ultimate opportunity to pursue your passion for aviation. That being said, challenges can be expected. Chief among them? A significant financial commitment, including the standard purchase price, maintenance, and insurance. A clever workaround is available: shared ownership. This delivers the convenience and personal satisfaction of whole ownership but with a significant price break attached. There are caveats to be considered, but you’ll need to weigh the options carefully to determine which approach is right for you.
Are you struggling to make this decision? Please continue to read about the unique advantages of shared aircraft ownership and learn whether this strategy fits your needs and preferences.
Cost Considerations
Aircraft ownership always requires a financial commitment, but this can be lower than expected if you pursue a shared or fractional approach. This involves working with one or more co-owners who agree to split the costs associated with the aircraft: its upfront purchase plus long-term expenses such as maintenance or storage.
There are many ways to achieve co-ownership. This arrangement often involves just two or three co-owners who enjoy extensive use of the aircraft in question and may run into minimal scheduling conflicts. In an effort to further cut costs, however, some shared arrangements include several co-owners.
Scheduling Concerns
How often do you expect to fly? Be mindful of your flying habits as you proceed — as a co-owner, you may need to compromise as you set your schedule. Again, this is where the number of co-owners will come into play. In most cases, scheduling will grow more complicated and more restricted as additional co-owners get involved.
Are you not willing to spend significant time away from your aircraft? Consider working with just one or two other co-owners. That being said, some fractional arrangements involve expanded access to a fleet, which may allow you to spend more time flying.
Risk of Disputes
Careful co-owner selection is crucial, as this arrangement can carry a great deal of risk. You want to feel 100 percent confident that you can rely on co-owners to pay their fair share and to abide by a basic set of ground rules. It can, unfortunately, be difficult to determine who, exactly, qualifies as trustworthy.
Formal agreements can limit risk, but there is always the potential for future disputes. The good news? Many co-owners get along wonderfully and never run into trouble. When in doubt, look to shared ownership networks, which can connect you with the most reliable co-owners.
What to Consider When Weighing Your Options
Still not sure if you’re the ideal candidate for shared aircraft ownership? To help clarify your intentions, consider both your budget and your commitment to flying. Clarify your intentions as an aircraft owner and determine how various approaches to ownership fit — or compromise — your unique plans.
If, as a frequent flyer, you need full scheduling flexibility, whole aircraft ownership may prove the better option. Not only will you gain complete control, but you may actually end up spending less over time, especially if you can take advantage of tax benefits. If you think of yourself as a casual enthusiast — and if you’re concerned about the cost of aircraft ownership — a shared approach is more likely to meet your needs.
Keep in mind that the how of shared ownership can determine whether you ultimately realize the full benefits of this approach. This means thinking carefully about how many co-owners you are willing to take on — and who, exactly, assumes the responsibilities of shared ownership.
Finding the Right Approach
There is no one ‘correct’ way to purchase or own an aircraft. It all comes down to your unique vision — how you want to bring your aviation dreams to life. Work with GO Air Brokerage to simplify this process and embrace the advantages of shared aircraft ownership. Contact us today to get started.