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Questions about how Fractionals Work.

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UND_Sioux

Well-known member
Joined
Aug 18, 2006
Posts
58
I have a few questions about how fractionals operate.

1. How many aircraft are there per owner? If 8 owners buy 8 1/8 shares of a jet, is there only one jet?

2. What happens if all 8 owners want to take their share of the jet to Aspen on Christmas eve? Is there enough aircraft to cover the demand around the holidays? What happens if demand exceeds the number of jets?
 
those are good questions, but, we cannot answer them due to confidentiality issues.

I can say that regardless if all 8 owners want to fly at the same time, they will have an aircraft available to them.
 
I have a few questions about how fractionals operate.

1. How many aircraft are there per owner? If 8 owners buy 8 1/8 shares of a jet, is there only one jet?

2. What happens if all 8 owners want to take their share of the jet to Aspen on Christmas eve? Is there enough aircraft to cover the demand around the holidays? What happens if demand exceeds the number of jets?

Dozens of articles have been written over the years on how fractional programs operate. I suggest you search the B/CA magazine and AIN magazine websites. Plenty of info to answer your questions.
 
those are good questions, but, we cannot answer them due to confidentiality issues.

I can say that regardless if all 8 owners want to fly at the same time, they will have an aircraft available to them.

I doubt that these are confidential issues; For one, ANY potential customer can call up any fractional and ask these questions and have them answered. Plus, the answers to his questions are well published and reported.

It is advertised that 1/16 of a share = 50 hrs. They it'd be logical to say that each aircraft is theorized to fly 800 hrs/yr. 1/8 share would be 100 hrs.

In the 2006 Berkshire Hathaway's Annual report, it was reported what was the consequences and financial impact of the lack of enough core fleet and the cost of substantial sell-offs during 2005.
 
I doubt that these are confidential issues; For one, ANY potential customer can call up any fractional and ask these questions and have them answered. Plus, the answers to his questions are well published and reported.

It is advertised that 1/16 of a share = 50 hrs. They it'd be logical to say that each aircraft is theorized to fly 800 hrs/yr. 1/8 share would be 100 hrs.

In the 2006 Berkshire Hathaway's Annual report, it was reported what was the consequences and financial impact of the lack of enough core fleet and the cost of substantial sell-offs during 2005.

well it aint up to you to decide what is and isnt confidential company info.

this guy needs to contact the company for that info....not us.

if yu are senior to around #174 then by all means post it....just ddont say I didnt warn ya. I know of 4 pilots let go because of posting confidential info. It aint worth it.
 
Last edited:
Confidental? Don't be ridiculous! There's nothing confidental about how a fractional manages to cover requests for same time use. And, all fractionals address the problem in essentially the same way:

1. Reservation time frames are more restrictive for forecast high-use periods.
2. The core fleet should be big enough to handle likely conflicts. 3. Upgrade the owner to a less-used premium fleet for the same price. 3. Offer the owner a downgrade for a break on charged occupied hours and costs.
4. Sell the flight to a charter provider.
 
if yu are senior to around #174 then by all means post it....just ddont say I didnt warn ya. I know of 4 pilots let go because of posting confidential info. It aint worth it.

Thanks for either the fear-mongering or the well-intended advise; I will take it as the latter. Common sense would tell you what is confidential and what's not. Those were not questions about NJA, its merely about how fractional works; any fractional. Share size, sell-offs, and core fleet is common to all fractional. If it was confidential, and being that NJA is the creator of fractional ownership, then all the other fractional would have been sued due to the unauthorized use of confidential information.
 
Fractional Aircraft companies work like Banks....

Therefore whenever banks are in trouble ... so will Fracs.

Fractional Aircraft Ownership
vs
Fractional Reserve Banking.

You deposit your money in a Bank. The bank counts that money as part of its Reserve and can lend 10 times as much money out.

You "deposit" you airplane in the Frac and the Frac counts it as part of their Fleet. Maybe 10 owner accounts for every one actual airplane in the barn.

Banks count on the fact Everybody does not want to withdraw their funds at the same time (Run on the bank)

Fracs depend on the fact that everyone doesn't want to fly at the same time.

When demand is high the banks borrow money from other banks, principally the Federal Reserve to meet the demand for capital.

Fracs go to the Core Fleet and Charter companies to meet demand in excess of available airplanes during peak periods. Essentially borrowing airplanes similar to banks temporarily borrowing capital.

Does this answer your question?

Remember Fracs were invented by investment banker from Goldman's and funded by Berkshire ....

NJAOwner ... How did I do?
 
If it was confidential, and being that NJA is the creator of fractional ownership, then all the other fractional would have been sued due to the unauthorized use of confidential information.



I don't think you can sue someone for "unauthorized use of confidential information".

If you tell me a secret then what did I do wrong?
 

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