In his June 2006 “Inside Fractionals” column for Business Jet Traveler, Shaircraft CEO, James Butler, explains the benefits and the risks of buying fractional shares from an owner rather than from a provider. While some providers restrict owners from selling their own shares, Butler indicates, “nder many existing fractional contracts, the owner is relatively free to sell his share to a third party with reasonable restrictions.” In addition to lower fees, Butler cites other advantages for the buyer, “The contract may include short-leg waivers, peak-travel and upgrade guarantees, ferry-fee waivers and simultaneous-use rights, some or all of which may no longer be available under the provider’s program.” Noting potential complications, Butler cautions, “t’s important that you confirm the contract’s business and legal terms. Understand that, for good or ill, you’ll be stuck with them; you won’t be able to renegotiate with the provider.”
Download: “Buying Your Share from Another Owner” (PDF)
