In the early part of this decade, the triple whammy of the 9/11 tragedy, the bursting of the internet bubble and the stock market plunge threw the industry for a loop. As the stock market recovered and the commercial air travel experience continued to deteriorate, fractional flying again began to flourish, along with some new private flying program models like fractional jet cards, block charter programs and the like.
In the past two years, however, the recession has hit the fractional jet industry hard. Fractional companies have seen many share redemptions and few share sales. The decline in the preowned jet market has hit fractional owners particularly hard, revealing the Achilles heel of the fractional flying model--the purchase price owners receive for their shares at the end of their contracts.
While recent headlines suggest that private aviation as a whole is rebounding, the future of the fractional industry is uncertain. Every fractional owner and potential fractional owner has the same basic question: Does it make sense for me to invest/stay invested in fractional or should I consider other private air travel options like charter or jet cards? While the fractional industry has both floundered and flourished in recent years, the answer to this question always is the same--it depends on your individual circumstances including your investment time horizon, your travel profile and budget, etc.
Your goal should be to purchase maximum flight time on aircraft that best fit your needs from reliable and financially stable companies at a minimum cost. Making the wrong choice can cost you hundreds of thousands, if not millions, of dollars. Making the right choice can free you from the horrible service offered by the airlines in a way that does nothing less than change your life for the better.
To read a more thorough discussion of the factors you should consider in making your decision, see my recent article in Business Jet Traveler magazine: "Flying Privately Without Buying a Jet"
