Private Jet Expert, James Butler, Evaluates the Durability of the Fractional Ownership Model

Bethesda, Maryland • November 2010

In a special report for Aviation International News, Shaircraft CEO, James Butler, weighs in on the staying power of the fractional model.

While the fractional model has been challenged over the last several years by a down economy as well as the rise of other options requiring a lesser upfront financial commitment, Butler believes that fractional aircraft shares will maintain a place in the industry.

“There will always be those who want the convenience of being able to call one number and have a single fleet managed by a company that hires and trains its own pilots and has aircraft available and you don’t have to do any research or bid out your flight,” says Butler.

However, Butler predicts a decrease in the use of fractionals by leisure (non-business) travelers. “Fractional will continue to work for businesses that can use the depreciation and that otherwise might be looking at purchasing an aircraft and having to manage it and have a flight department. But I think a lot of people who fly for leisure purposes will look more at other options, having been burned on the way out [when providers repurchased shares].”

Overall, Butler maintains, “I think there needs to be a new transparency and level of trust between the programs and their customers. [The relationship] has been strained as the economy has soured and owners have seen the cost of their flying become much more variable.”

To read Butler’s complete analysis, download the full text version of this article below.

Aviation International News: “Fractional Market: AIN Special Report”

Download in PDF format (16kb)

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