Numbers

Fractional-Jet Industry

How It's Used

“The rise of private aviation is generally thought to have begun with the purchase by Warren E. Buffett, the Omaha investor, of NetJets in 1998. Under the NetJets scheme of fractional-share ownership, buyers purchase, say, a 16th of a Hawker 400XP for about $400,000, or the same fraction of a Gulfstream 550 for roughly five times that amount, and then negotiate, much as time-share holders in a condominium might, for use of the plane. Then as now, fractional-share owners tended to be either large corporations or the ultrarich.”

"In addition to providing networking opportunities, the company says it gives clients agnostic advice on everything from property transactions to financial analysis of fractional jet ownership. And whether it is just booking first-class travel or having a Quincy Group employee on the ground at all times, the company is not above organising its clients' holidays."

"The full-page advert yesterday in The New York Times depicting 'Tiger Woods with his Gulfstream 450' was selling Executive Jet Management or, for those slightly worse off, 'fractional jet ownership programs'. How much, one wonders, to buy a front wheel?"

"The cancellation of a firm order for 25 Learjet 60XR aircraft from Europe's Jet Republic Ltd. is another sign of challenging conditions in the business jet market and may put tje Learjet production schedule of Bombardier Inc. at risk. Jet Republic had placed an order for 110 of the aircraft, of which 85 were conditional. First delivery was scheduled for October 2009. The fractional jet ownership company is 'technically insolvent' and has ceased operations."

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