I am looking for info on just how a fractional works. How much each pays is there a limit on how much one can pay the costs how you determine the right and fair cost to do business by attracting clients and make some money. Tahnks for your help.
A fractional plan is sort of like a time share. The "owner" can buy anywhere from roughly a half share in an airplane down to 1/16th of share. Depending on the company that he goes with he can buy either a used or new interest in the airplane. Figuring in market value for the aircraft he buys his portion, (ie, $10 million
aircraft, 1/4 share= $2.5 mil) After that he pays a monthly management fee ranging from $8-10,000 on up. Then he pays for the occupied flight time in the aircraft plus any incidentals that might come up such as excessive catering, customs fees, etc. This is just a broad overview of the fractional programs. Each of the fractional companys programs are shaped a little differently.
For the owner that might need an airplane for tax purposes or for whatever reason, this really helps out, it guarantees him an airplane and he doesn't have to worry about the loose ends. Hope this helps out.
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