Partial Aircraft Ownership

Most Frequently Asked Queries

Isn' split property a time sharing? Fractions do not use the time sharing rules under FAR 91.501(c)1. Fractional ownership is an overall approach that provides for (1) co-ownership, (2) the swap of aircraft lease contracts that allow aircraft to be exchanged between aircraft owner and (3) the use of a managing entity. Shares? What's a stock?

How long does the obligation for fractional ownership last? The majority of fractionated programmes usually have a five-year duration with early out and/or renewals available for a fee. Have I bought a new plane; with partial ownership, will I be flying only with new planes? Even though you have bought a part of a new aircraft, it becomes a member of a family of the same aircraft family.

Aircraft ages in the fleets are different, but they are usually similar in appearance and appearance. Every journey is made with the most readily available programme aircraft, taking into consideration timetables, fleets available and itineraries among many different considerations. Non-programme charters or major programme aircraft may in some cases be replaced by programme aircraft.

When I buy a fractionshare, what kind of documentation will I be signing? Sales contracts define the circumstances under which an interest in a particular aircraft passes from the supplier to the purchaser. The restricted proxy allows the vendor to modify the name(s) on the registry at each sale of a stock.

To this end, a Memorandum of Understanding sets out the requirements, modalities and scope of services that the sub-programme will deliver. A Ownership Arrangement must be initialled by all aircraft operators of a particular aircraft. Remaining Resell Value is the anticipated value of your aircraft interest at the end of the arrangement. Participants will accept a methodology for estimating the value at repurchase that may or may not take into consideration high aircraft utilisation.

Under the assumption of an avarage 430 hour per year load of the TFD and an avarage 1,000 to 1,200 hour load of aircraft, the value of an aircraft in a disruption programme will most likely be lower than the avarage TFD due to the increase in flying time and cycle.

1,000 to 1,200 hrs base on 800 hrs sales per year and up to 400 extra hrs for relocation. If I own a stake in a broken aircraft, am I the fiscal proprietor? Yes, as the holder of a fraction of a stock of an aircraft, you are an aircraft holder for fiscal reasons.

Is my acquisition of a fraction of a stock liable to state VAT? Use of the aircraft in one condition is the source and not the place of supply. Usage taxes can be imposed by virtually any state in which the aircraft is used. If the number of working days rises, do the immediate running costs per unit of time increase?

They rely on the fractionated supplier to manage operations directly and to manage overheads. If the number of lessons rises, does the administration charge increase? Yes, the administration charge rises with the number of shares acquired and is a proportion of the total overhead. It is a drawback for the fraction at high load and an edge at low load.

Am I allowed to travel over my allocated annual workload? Landlords may be able to exceed the annual allowance by renting from the period of the next year before the last year of the agreement. However, some vendors may not allow the transfer of idle working days without significant limitations.

How does fractal ownership provide greater agility than full ownership? When available, you can customize the aircraft to your travel needs by changing the aircraft up or down according to your own aircraft model. Provide concurrent travel for several aircraft - for example, if your airline needs more than one aircraft for an executive session.