Upgrading from Fractional to Full Aircraft Ownership

 

Customers use of private aircraft for travel often follows a predictable pattern.  The customer is usually introduced into private aviation through charter, flying on another persons aircraft or through the ever popular jet card and membership programs.

Once a client is exposed to private travel, they immediately see the benefit of the no hassle travel experience and recognize its value, not only as a comfortable way to fly, but also as a true time saver.  Sometimes these customers transition into fractional share through a provider such as Netjets or Flight Options.  The fractional providers have done a great job of making the purchase and use of these assets very simple and the service is consistent and generally pretty good.  One of the major downsides to the fractional model is, as the usage increases, so do the costs.  The fractional model is a good option for people who fly 75-100 hours a year.  Fractional customers realize that the model becomes quite expensive when their flight hours go above 100 or if they go over their allotted hours.

The most evident additional expense is when a fractional owner is forced to upgrade to a newer aircraft and with that upgrade comes the substantial capital cost of buying into the new aircraft.  Due to the recent pricing drops in the used aircraft market astute fractional owners are realizing that this new “buy in” cost could come close to equaling the cost of purchasing an entire used aircraft.   As more and more clients become aware of this, many previous fractional owners are transitioning into whole aircraft ownership.

The cost of pre-owned aircraft have declined significantly over the past few months.   A 10 year old GIV SP can be bought for $5-7M dollars, where a G200 can be purchased for 3.5-6M and a Hawker 800XP for under $2m.   These full aircraft prices are often as much as the cost of a “1/8 share” of a newer aircraft and represent a significant upgrade in availability and an opportunity for truly customized service.  These preowned aircraft sometimes have aircraft and interiors that are in better shape then the heavily used fractional fleets many of these customers are used to flying on and others realize that after the purchase they can be customized to the clients exact tastes.

Ashton Air recognizes that there is not a lot of information to help a client migrate out of their fractional aircraft and into full aircraft ownership.  The founder of Ashton Air is very familiar with both fractional aircraft and aircraft brokerage having worked for several years at the largest fractional provider and subsequently has run several management companies.

Ashton Air has created it’s [thrive_2step id=’778′]Fractional Transition Program [/thrive_2step]specifically tailored to current or previous fractional aircraft owners.   This program is specifically designed to make a smooth transition between the two types of ownership and have this as seamless as possible.   For more information of this program please contact Ashton Air, LLC at 281-393-0111 or visit our website at www.www.ashtonair.com.

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