Bethesda, Maryland - May 2010
Attorney and CEO of the veteran private air travel consulting firm, Shaircraft Solutions, James Butler, Esq., is making a splash in the world of social media, with active profiles now on Twitter, Facebook and LinkedIn.
“Following the launch of our blog, Inside Private Air Travel, we decided to expand our outreach on social media applications. While not all of our clients are using them, many are, as are many of our industry colleagues. It’s turning out to be just one more venue for listening to and connecting with private air travelers, getting first-hand information from industry folks, and sharing our expertise with the exclusive private aviation community.”
Finding James Butler/Shaircraft online:
LinkedIn: www.linkedin.com/in/shaircraft
Facebook: www.facebook.com/shaircraft
Twitter: www.twitter.com/shaircraft
Blog: blog.shaircraft.com
Shaircraft Solutions is a Maryland based consulting firm advising businesses and individuals on a range of private air travel investments, including fractional ownership, jet card programs, air taxi services and charter, and also specializes in fractional share valuation disputes. CEO, James D. Butler, is an attorney and frequent commentator on the private air travel industry. He authors the “Inside Fractionals” column for Business Jet Traveler magazine, contributes regular pieces to Halogen Jets, and recently has served as an expert analyst for media outlets such as The Wall Street Journal, Robb Report, Forbes, Aviation International News, Halogen Jets, CNN and Fox News. He can be reached at jbutler@shaircraft.com.
Wednesday, May 19, 2010
Thursday, May 13, 2010
The Future of Fractional Jet Ownership
As a private aviation advisor for more than a decade, I’ve seen the fractional jet industry go through plenty of ups and downs. Early on, fractional flying flourished as NetJets, the result of the creative genius of Rick Santulli and the capital of Warren Buffett, came to the fore, followed by new entrants developed by strong aviation companies like Bombardier, Cessna and Raytheon.
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"
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"
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