As the bankrupt fractional provider prepares to have its assets auctioned off, Avantair continues to make headlines as fractional owners seek ways to better protect their investments. Barron’s Penta magazine asked Shaircraft CEO, James Butler, to explain one of the important lessons that fractional owners should take away from the Avantair debacle.
An early advocate for communication amongst fractional owners, Butler drills home the critical importance of identifying and communicating with your ownership partners.
“An aspect of the [fractional] business model is to control owners by creating walls between them. By not being able to deal with providers as a group, [owners] don’t have much leverage.”
Butler notes that a good place to start is the FAA registration information for your aircraft, which you’ll find at the FAA’s website, faa.gov. Type in the registration number of your aircraft and you’ll gain access to the names and addresses of the other fractional owners of your aircraft. With that information, you’ll be able to communicate freely with your fellow fractional owners.
Butler’s article, “Is Your Fractional Provider Going Under?,” highlights warning signs to look for and steps you can take to protect your investment.