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Fractional Aircraft Ownership - An Overview

Fractional Aircraft Ownership is a hot topic in commercial aviation today. Many large US carriers are looking to partner with small satellite aircraft operators for increased revenue. Some have already signed agreements. The Federal Aviation Administration ( FAA ) released a notice on Jan. 12, 2010 stating that all fractional jet operators must be licensed by the FAA. This means that if an operator does not meet all of the regulations, such as having its operations located within the United States, then it may no longer be allowed to operate.

In order to qualify as a Fractional Aircraft Ownership, owners must demonstrate the ability to control and operate the plane using remote control. This is different from the operation of an airplane that is owned by a carrier, as those airplanes are generally operated by pilots. In addition, the operation must occur in daylight with flying conditions that are clear and safe. Fractional jet planes must also meet noise requirements that are set by each state.

There are many benefits of fractional aircraft ownership. Most pilots begin their careers with small planes that they can quickly grow into. They do not need a large runway in order to operate their planes. This means they can fly from more areas and for longer periods of time.

Some of the companies that are looking into starting a business with private aircraft are considering adding airports onto their list. The idea is that if the airports are maintained properly and if the owners operate the planes according to safety regulations and aircraft maintenance, then they will generate a profit for themselves. Some of the new private airports that are being planned include Phoenix airport, Las Vegas airport and Atlantic City airport. Fractional pilots may also decide to buy and rehab existing airfields that are no longer needed. These airports offer ready access to highways for their travelers.

One of the main attractions of fractional aircraft ownership is the ability to make money from the airports. A portion of each ticket sold will go towards paying for the plane if it is not in use. The profit made through this program will be used to repair planes that need repairs. Some fractional program owners are also interested in purchasing and rehabbing commercial airports in other states so that they can also participate in revenue producing flights.

Fractional aircraft ownership has many pluses. However, like all investments, you should carefully consider how much of your time and money you can give to this type of ownership. It can be an appealing option to many people but you do need to understand how much you would actually be spending if you were the majority owner. Many fractional jet owners share ownerships and therefore are not required to pay any kind of taxes on the airplane. However, if you share ownership with a partner, their taxes may be transferred to yours.

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