Economy up but fractionals flat

[hydrarkt]

Fractional ownership industry in Hong Kong and Taiwan, for instance, a little while ago confessed that they have the extraordinarily frustrating producing results. A crackdown on defilement and a log jam in financial development prompted deals dropping by about half from 2015 to 2016. NetJets is in light of the organization's fast development, and extremely solid present the conveyance of new airplane, and anticipate another enormous year in 2018. NetJets in Europe offers machine proprietorship and NetJets International are set to profit by this solid market development.

Multiple issues in Asia, especially China, negatively affect biz aviation. Corruption and government control are huge issues. And within Asia, there is not robust business aviation infrastructure, including lack of FBO support and suitable airports. The rest of the world is not like the US when it comes to aviation. We are lucky here to have built hundreds of airports all around the country in the days of rapid growth and before regulations got in the way. And we're lucky that many of these airports can accommodate business jets. Not so in other countries.

 

[Groucho]

Here is an interesting report from KMG Pete Marwick. It's from 2005 but it is the only report I am aware of on the Fractional business model and the unique problems of continuing profitability. https://www.irmi.com/docs/default-s...nts/webster04-aircraft-ownership.pdf?sfvrsn=4

It is a very interesting read, a 26 page report on the industry financials and problems.