fractionals' future

[NiteWitchWanabe]

On and off for the past three days, I've been following the postings on fractionals. I'm not a high-time pilot, but during my flying experiences over the past 15 years, I've been fascinated by the whole concept of fractional ownership of aircraft. I've watched from the sidelines as the fractionals were born, then boomed in the ensuring years, finally to plateau in the recent year. Since you folks are on the front lines, so to speak, I thought some of you might have some throughts on where the fractionals are headed over the next five or ten years. Will there be a weeding out process among the providers? Will others join Netjets in finally turning a profit? Thanks for sharing your thoughts!

 

[RedEye1]

NetJets is going down. Avantair www.avantair.com is where it's at, the P180 can do the same job at 1/2 the cost to the owners.

 

[El Chupacabra]

Fractional seem to be evolving to higher percentage of Jet Card Ownership rather than fractional owners. Will continue to grow as long as the US economy grows. Rich class are doing better than ever according to WB.


JetCards grow despite the fact that its most expensive option. Its standard product and BRAND recognition. Just like when you drive on a long trip and its time to stop at a restaurant for the family to eat. I might want to try one of the local places but its hard to get everyone to agree unless you instead stop at a Chain franchised place. You know what you are going to get. Next door might be better or worse but you have no idea because you never heard of it.

 

[G100driver]

NetJets is going down. Avantair www.avantair.com is where it's at, the P180 can do the same job at 1/2 the cost to the owners.

I guess that was a joke Last time I was in Kona I did not see any P180's there. I did however see seveveral P180's making fuel stops going across the country.

 

[GVFlyer]

I think the entire fractional industry is in transition to becoming large block charter operations - witness the success of the card programs such as the Marquis Program. There is no economic benefit to ownership if one cannot place the aircraft "in trade" as many private fractional owners are restricted from doing. With card programs there is no large capital outlay, no vagaries of residual value based on market conditions, and no forced interest in a company that is managing and sharing your expensive asset for you - less hassle for a small premium.

GV

 

[El Chupacabra]

GV

I agree with you. My question is currently most of the airplanes are property of fractional owners such that Fractional operator has little aquisition costs. As the trend to cards continues ... The fractional will have to pony up the monies for aircraft purchases out of their own capital. Will this work? At $8400 per hour for a X ... I think so. What do you think?

 

[Kingairrick]

I agree with GV. The variable is the current Netjets situation. If there is a strike there. I believe that major changes will happen fast.

My reasoning goes: What is important to Netjets Management? The customers. Period. That's who writes the checks.

I think they will fire the pilot group and start over. If they cave to the pilots, they will be perceived as weak managers to their customers, who, after all, are captains of industry. Not the most Pro-labor group as a whole. This is to whom Netjets management must be accountable.

Threats of "scab" have no history of discouraging pilots from taking jobs left behind when a strike happens. They WILL be replaced, probably by pilots dumb enough to fly a jet for $28K. Are there any of those around?

Management will charter as many as they can to inconvienence as few as possible while they are in the re-start process. However, many, many owners will be royally pi$$ed off. This will cause them to look at other options. There are no shortage of charter/management companies willing to step in and promise these angry owners the world, for less...

Those customers will be lost forever from the fractional world. The conversations around the lunch table at the Yacht Club won't be selling many new owners either.

As always, my .02

 

[h25b]

This brings me to my question so excuse my ignorance of 91K ... How far off of Part 135 is this anyway. I can't see an operation of mostly Marquis Cards operated as 91K instead of 135 ?

 

[x402]

This brings me to my question so excuse my ignorance of 91K ... How far off of Part 135 is this anyway. I can't see an operation of mostly Marquis Cards operated as 91K instead of 135 ?

Marquis=135 period. Resale of owner share/lease.
91k owner travel.

 

[h25b]

Marquis=135 period. Resale of owner share/lease.
91k owner travel.

That's what I thought... Operationally speaking is there much difference ?