Two Sides to the Story

James Butler on The Benefits of Leasing Fractional Shares vs. Purchasing Jet Cards

Bethesda, Maryland • October 2013

For a special buying guide issue, long time member of the Robb Report Private Aviation Advisory Board, James Butler, offers perspective on the benefits of leasing a fractional share compared to purchasing a jet card.

While at first blush, leasing a fractional share may appear to be more costly than purchasing a jet card, leasing may provide benefits not available with jet cards. “As with fractional share ownership, you may be able to negotiate concessions into the lease contract, which you can’t do with [jet] cards.” Examples of such concessions are additional flight time, short-leg waivers and shorter call-ahead times to arrange flights.

There also is a degree of certainty with costs, which for the most part are fixed in a lease contract, that you won’t get with a jet card. Butler notes, “[W]hen a card runs out, it’s a new day. There are no limits on the cost of a new card.”

Butler points out that leasing also may be more agreeable to corporate shareholders. “Some companies don’t like showing a private jet asset on the books,” he says. “With a lease, it’s easier to present the jet as a travel expense, which may be less controversial with shareholders.”

The bottom line? When it comes to leasing a fractional share, there are opportunities that, when capitalized on properly, can save you money in the long run, while also painting a prettier picture for shareholders.

Related Article: “When Fractional Isn’t the Way to Fly” – Sherpa Report

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