Our private jet consultants have been advisors for more than 20 years and have seen the fractional jet industry go through plenty of ups and downs. Early on, fractional flying flourished as NetJets, the result of the creative genius of Rick Santulli and the capital of Warren Buffett, came to the fore, followed by new entrants developed by strong aviation companies like Bombardier, Cessna and Raytheon.
In the early part of this decade, the triple whammy of the 9/11 tragedy, the bursting of the Internet bubble and the stock market plunge threw the industry for a loop. As the stock market recovered and the commercial air travel experience continued to deteriorate, fractional flying again began to flourish, however since then new private flying program models like fractional jet cards, block charter programs and the like, have become more popular over the years. These new private flying programs give customers much more flexibility without tying up large sums of money into a fractional jet program. Prive International was following this trend during the early stages and has since then implemented these strategies into our private jet chartering program.
In the past two years, however, the recession has hit the fractional jet industry hard. Fractional companies have seen many share redemptions and few share sales. The decline in the pre-owned jet market has hit fractional owners particularly hard, revealing the Achilles heel of the fractional flying model–the purchase price owners receive for their shares at the end of their contracts.
While recent headlines suggest that private aviation as a whole is rebounding, the future of the fractional industry is uncertain. Every fractional owner and potential fractional owner has the same basic question: Does it make sense for me to invest/stay invested in fractional or should I consider other private air travel options like charter or jet cards? While the fractional industry has both floundered and flourished in recent years, the answer to this question always is the same–it depends on your individual circumstances including your investment time horizon, your travel profile and budget, etc.
Prive International’s private jet charter program is a much wiser solution than fractional ownership. Our members prefer this approach and we are seeing an increase in new members joining who in the past were tied up in a fractional ownership program.
When considering private jet transportation, your goal should be to purchase maximum flight time on aircraft that best fit your needs from reliable and financially stable companies at a minimum cost. Making the wrong choice can cost you hundreds of thousands, if not millions, of dollars. Making the right choice can free you from the horrible service offered by the airlines in a way that does nothing less than change your life for the better.
For more information on membership and our private jet charter program contact us: Privé International