Greetings, Kind Reader! Helicopter fractional ownership is a smart and cost-effective way for individuals and companies to enjoy the benefits of owning a helicopter without the high maintenance, storage, and operational costs. With fractional ownership, several individuals or companies buy a share in a helicopter and share the expenses related to the upkeep and operations of the aircraft. Not only is it more affordable, but it also offers flexibility in scheduling and access to various helicopter models. Let’s dive deeper into the world of helicopter fractional ownership and its advantages.
Fractional Ownership: An Overview
Hiring a helicopter can be an expensive affair, but that is where fractional ownership comes in. Fractional ownership refers to sharing the cost, ownership, and maintenance of a helicopter with other owners. The helicopter is divided into small fractions, and owners pay only for the fraction they own.
The Benefits of Fractional Ownership
One of the main benefits of fractional ownership is that it allows individuals who could not otherwise afford a helicopter to own one. This type of ownership also provides greater flexibility since fractional owners can use the helicopter when they need it instead of scheduling a flight weeks in advance. In addition, it can be more cost-effective since owners share the maintenance and operational costs.
The Risks of Fractional Ownership
However, fractional ownership does come with its risks. One of the major risks is that the helicopter’s value can depreciate or decline. This could result in a greater financial loss than other types of aviation ownership. It also requires a higher level of coordination between the owners as all will want to use the helicopter at different times, which can cause scheduling conflicts.
How Fractional Ownership Works
In fractional helicopter ownership, a group of individuals buys a helicopter, and the cost of acquisition is divided among them equally. The cost of the helicopter is split into fractions, which are sold to the owners. Owners can purchase as many fractions as they want, and the cost of ownership depends on the number of fractions they buy. The owners also share the cost of maintenance and operation evenly.
Fractional ownership agreement documents are legally binding, and the rules for their use are precise. Therefore it is recommended that each party engage an aviation attorney to ensure that the investment is structured in an agreed-upon manner and that the terms outlined in each of the agreements are clearly stated and well understood.
|No||Important Points to Consider in Fractional Ownership Agreements|
|1||The fraction of the helicopter that is owned by each owner.|
|2||The length and scope of the owner’s access to the helicopter.|
|3||The responsibilities of the owners regarding the maintenance and repair of the helicopter.|
|4||Cost sharing may differ based on the scope of use or risk.|
The Benefits of Helicopter Fractional Ownership
Helicopter Fractional Ownership is becoming a popular concept among high net worth individuals who are frequent travelers and have a busy lifestyle. Here are some of the benefits of helicopter fractional ownership:
One of the prime benefits of helicopter fractional ownership is that it is often more cost-effective than regular aircraft ownership. As the cost of purchasing and maintaining an aircraft is divided among the fractional owners, the overall cost decreases. In addition, fractional owners only pay for the hours they use the helicopter, significantly reducing overall costs.
Another significant benefit of helicopter fractional ownership is the ready availability of a helicopter. As fractional owners own a share of the helicopter, they can book it any time they need it and can customize their flight schedules according to their needs. Unlike commercial flights, fractional owners do not have to adhere to fixed schedules and can have complete control over their travel plans.
3. High level of Service
Fractional ownership companies often offer a high level of service to their clients. Each fractional owner is assigned a fractional ownership manager who is responsible for handling the logistics of their flights. From aircraft maintenance to flight planning, fractional ownership managers ensure that every aspect of the fractional owner’s flight is taken care of.
4. Reduced Travel Time
One of the most significant advantages of helicopter fractional ownership is its ability to reduce travel time. With helicopters, you can avoid traffic jams, crowded airports, and long security lines. Instead, you can reach your destination in a fraction of the time it would take to travel by car or commercial airplane.
5. Added Privacy
Helicopter fractional ownership offers a high level of privacy to its owners. Fractional owners can enjoy the luxury of having a helicopter to themselves or share it with their select group of passengers. As they bypass crowded airports and commercial flights, fractional owners can avoid unwanted attention when traveling.
6. Ability to Fly to Remote Destinations
Helicopters can land on remote helipads or private properties, providing fractional owners with the flexibility to fly to destinations that are otherwise inaccessible by commercial flights or even private jets. This added flexibility allows fractional owners to reach their final destination with ease, no matter how remote it may be.
|1||Fractional ownership allows multiple people to own a share of a helicopter.|
|2||Owners can use the helicopter for a specified number of hours or days per year.|
|3||The cost of helicopter fractional ownership varies based on factors such as the type of helicopter, location, and amount of usage.|
|4||Owners have access to a fleet of helicopters rather than just one, providing more flexibility.|
|5||Fractional ownership companies typically handle maintenance, insurance, and other expenses.|
|6||Owners can sell their share or transfer it to someone else.|
|7||Fractional ownership can be a cost-effective alternative to traditional ownership or chartering for some individuals and businesses.|
Helicopter Fractional Ownership vs. Chartering
Helicopter fractional ownership provides a cost-effective solution to helicopter ownership that can benefit frequent flyers. But what if you need to get to your destination quickly and have no intention of becoming a helicopter owner? Chartering might be a great option for you. In this section, we will compare helicopter fractional ownership to chartering to see which one is right for your specific travel needs.
Under helicopter fractional ownership, the cost of ownership is shared by all owners. This means that the cost per owner is much lower than it would be if each individual owned an entire helicopter themselves. While chartering is more expensive per hour than flying your own helicopter, the overall cost can still be lower if you don’t need to fly frequently. However, if you fly frequently and want a more cost-effective option, helicopter fractional ownership is likely your better bet.
Chartering often offers more flexible options than helicopter fractional ownership, enabling you to schedule flights on your own timelines. This is a great option for those who don’t fly often enough to justify investing in partial ownership but want more flexibility in scheduling their air travel.
Fractional Ownership vs Traditional Ownership
Deciding between traditional or fractional ownership will depend on a few factors, notably the frequency of usage and the cost. Traditional ownership means that the helicopter is solely owned by one individual or entity, whereas fractional ownership splits ownership of the same helicopter between multiple individuals.
Perks of Fractional Ownership
Fractional ownership gives its owners access to a helicopter without the steep costs associated with owning a helicopter outright. This is because fractional ownership programs split the cost of the aircraft, which includes the initial payment, maintenance costs, and insurance premiums among multiple parties. It also means that, should you no longer need ownership of the helicopter, you can sell your shareback to the program or to another individual.
Traditional Ownership Drawbacks
On the other hand, traditional ownership means shouldering all cost associated with the helicopter, including the purchase price, maintenance, insurance, and hangar space. Additionally, it can be incredibly difficult to sell the helicopter should you decide you no longer need it, and asset depreciation should also be factored in.
Cost Comparison with Traditional Ownership
One of the most important considerations in choosing between helicopter fractional ownership and traditional ownership is the cost. While traditional ownership may seem more straightforward, it can be much more expensive in the long run. Not only do you have to pay for the full purchase price of the helicopter, but you are also responsible for all of the associated costs, including maintenance, storage, insurance, and more.
Costs of Traditional Ownership
According to research on page 1 of Google on 10 websites regarding helicopter fractional ownership:
|No||Costs of Traditional Ownership||Website|
|1||Average cost of a new helicopter – $1.5 million to $8 million||SherpaReport|
|2||Annual fixed costs (insurance, storage, maintenance, etc.) – $200,000 to $500,000||Upper Limit Aviation|
In contrast, with helicopter fractional ownership, you only pay for a portion of the helicopter and its associated costs, making it a more affordable option for those who want access to a helicopter without the high price tag.
Costs of Helicopter Fractional Ownership
According to research on page 1 of Google on 10 websites regarding helicopter fractional ownership:
|No||Costs of Helicopter Fractional Ownership||Website|
|1||One-time purchase price – $50,000 to $500,000||Blue Star Jets|
|2||Annual costs (which include maintenance and management fees) – $25,000 to $50,000||Fly Finiti|
Overall, helicopter fractional ownership can be a more cost-effective solution for those who want access to a helicopter but don’t want the high costs associated with traditional ownership.
Advantages of Helicopter Fractional Ownership
Helicopter fractional ownership has many advantages over full ownership, including:
1. Reduced Cost
One of the main advantages of helicopter fractional ownership is the reduced cost. Instead of purchasing an entire helicopter, a fraction of ownership is purchased, which significantly lowers the cost. This makes helicopter ownership more affordable for individuals and businesses.
When multiple parties own a helicopter, the responsibility is shared among them. This means that the cost of maintenance, insurance, and storage is also shared. Additionally, each owner can use the aircraft when they need it as per their share allocation.
3. Access to Multiple Helicopters
Joining a helicopter fractional ownership program gives the owner access to a fleet of helicopters under the program. The owner can choose the desired helicopter to use depending on their requirement, and it allows them to fly different helicopters, instead of being restricted to only one.
4. Hassle-Free Management
The fractional ownership company manages the helicopter and handles the necessary maintenance, insurance, and storage. This means that the fractional ownership owner doesn’t have to worry about managing the aircraft themselves, and can enjoy their flying experience without any stress.
5. Higher Resale Value
Since the cost of fractional ownership is lower than full ownership, its resale value is also higher. The demand for fractional ownership has increased over the past few years, and this has resulted in an upswing in resale value.
6. Tax Benefits
Helicopter fractional ownership offers several tax advantages that are not available with full ownership. For example, owners can depreciate their shares of the aircraft based on the number of flight hours accumulated and can write off a portion of their purchase as a business expense. This helps owners save a significant amount on their taxes.
7. High Level of Service
Owners of helicopter fractional ownership receive a high level of service, which includes access to additional services, such as booking charter flights, ground transportation, concierge services, and more.
|1||benefits of fractional helicopter ownership|
|2||shared ownership helicopter|
|3||access to helicopter fleet|
|4||helicopter ownership management|
|5||fractional ownership resale value|
|6||helicopter tax advantages|
|7||fractional ownership service level|
Advantages of Helicopter Fractional Ownership
There are several advantages to utilizing helicopter fractional ownership as opposed to purchasing or leasing a helicopter outright. In this section, weâ€™ll dive deeper into each of these benefits.
One of the biggest advantages of fractional ownership is cost savings. The initial purchase price of a helicopter can be incredibly expensive, and leasing one for extended periods can become costly over time. Utilizing a fractional ownership model means you share the costs of the helicopter with others, reducing the up-front investment and ongoing expenses.
Flexibility and Convenience
Another advantage of helicopter fractional ownership is flexibility and convenience. In most cases, fractional owners have the ability to utilize a shared helicopter at their leisure, allowing them to avoid scheduling conflicts that may arise with leasing agreements. Additionally, fractional ownership provides access to a wider range of helicopters beyond what would typically be available for individual ownership.
FAQ on Helicopter Fractional Ownership
If you have any questions or concerns about helicopter fractional ownership, please see our list of frequently asked questions below.
1. What is helicopter fractional ownership?
Helicopter fractional ownership is a program where you share the ownership and use of a helicopter with other individuals or companies.
2. How does helicopter fractional ownership work?
You purchase a share, or fraction, of the helicopter, and pay a monthly fee for the maintenance and operation of the aircraft. You can then use the helicopter for a certain number of hours per year.
3. What are the benefits of helicopter fractional ownership?
The benefits of helicopter fractional ownership include less financial burden, more flexibility, and access to a wider range of helicopters.
4. What types of helicopters are available for fractional ownership?
You can find a variety of helicopters for fractional ownership, including light, medium, and heavy models.
5. How much does helicopter fractional ownership cost?
The cost of helicopter fractional ownership varies depending on the type of helicopter, the number of hours you want to use it, and the size of your share.
6. How do I choose the right helicopter for my needs?
You should consider your budget, the number of passengers you need to transport, and the distance you will be traveling when choosing a helicopter.
You can sell your share at any time, but you may need to offer it to the other owners first.
8. Who is responsible for maintenance and repairs?
The management company is responsible for maintenance and repairs, and you will pay a monthly fee for these services.
9. What happens if the helicopter is damaged or destroyed?
You will be responsible for insurance coverage, and the management company will handle any claims.
10. How often can I use the helicopter?
The number of hours you can use the helicopter per year varies depending on the terms of your agreement.
11. Can I use the helicopter for business or personal use?
Yes, you can use the helicopter for both business and personal use.
12. When can I start using the helicopter?
You can typically start using the helicopter immediately after purchasing your share.
13. What happens if I exceed my allotted number of hours?
You may have to pay an additional fee for any hours over your allotted amount.
14. Are there any restrictions on where I can fly?
Yes, there may be restrictions on where you can fly depending on the type of helicopter and your agreement.
15. What happens if I want to cancel my agreement?
You may be able to cancel your agreement, but there may be penalties or fees associated with early termination.
If you’re interested in helicopter ownership, consider learning about fractional ownership. This model allows multiple owners to share the cost and usage of a helicopter, which can make it more affordable and flexible for individuals or businesses.
Until We Meet Again, Kind Reader
I hope that this article has provided you with valuable insights into the world of helicopter fractional ownership. As you have learned, it can be a useful option for those who use helicopters frequently for business or personal reasons. The benefits include cost-sharing, guaranteed availability, and personalized services. If you’re interested in learning more or signing up for a program, reach out to a reputable company and explore your options. Thank you for taking the time to read this and I look forward to seeing you again in the future!