25 questions to ask a fractional jet operator
25 Questions to ask based on fractional jet ownership:
1. What sets you apart from your competitors in terms of aircraft purchase, resale economics and preservation of aircraft residuals?
2. How many fractional planes do you operate and can you provide me with some customers who use your services?
3. What are the principal immediately obvious differences between chartering and fractional programs?
4. What is the procedure for liquidating aircraft in the event of company wind - down?
5. What if I need my airplane and it is not available because some other fractional owner is using it?
6. I could do without absorbing a large depreciation cost and don't wish to show aircraft ownership on the financial statements of the company, can I lease a fractional interest instead of buying one?
7. If I don't need the depreciation or lease expense, can I try Fractional Ownership at a lower cost?
8. What does it cost to buy into a program and what do I get for my money?
9. Is there a cheaper way to try Fractional Jet Ownership?
10. How negotiable are the contract terms and price packages and is there a monthly cost?
11. What paperwork is involved in buying a fractional interest?
12. Does the purchaser or the purchaser's advisor need assistance in the purchase of a fractional interest?
13. What type of individuals typically benefit from fractional programs and what other characteristics do buyers of fractional ownership interests exhibit?
14. Is it safe to purchase or use a "used" jet?
15. Are there other aircraft available in addition to Jets?
16. Can one lease or charter fractional hours from a fractional owner without being an owner or making a five year commitment?
17. Can I sell my fractional interest to a third party or alternatively to you if my circumstances change, if so, what are the processes?
18. If I sell my fractional interest back to you, how do we calculate what credit I will receive?
19. How can I get financing on the purchase or lease of a fractional interest?
20. As a co-owner does the fractional owner have responsibility to third parties for the negligence of another co-owner?
21. Is it alright to set up a subsidiary or affiliated company to own and operate the aircraft, for liability reasons?
22. What sort of insurance is typically provided and do I need an additional insurance policy?
23. What are the tax differences between owning a 100% interest and owning a fractional interest?
24. If a fractional interest is used predominantly for business and occasionally for personal use, how is the personal use taxed for income tax purposes?
25. Can a foreign company or individual own a fractional interest?
This information is for the convenience of our readers. The inclusion of a company should not be construed as a recommendation or endorsement by Fractional Life. Please review our full Disclaimer for further information.