Shaircraft CEO, James Butler, wants the readers of his “Inside Fractionals” column in Business Jet Traveler to be prepared if their provider goes under. This scenario, while unlikely, is not unheard of. He writes, “[W]ith new fractional programs sprouting almost daily as well as some large providers under stress, you have to consider this a possibility.”
Butler cites some “telltale signs” of trouble:
- Provider taking longer than usual to repurchase shares
- Declining service due to personnel shortages
- Key personnel leaving and being replaced by less experienced staff
- Poor aircraft upkeep
- Disgruntled pilots
- Provider offering concessions and making promises that seem far-fetched
If you suspect a problem, Butler recommends going directly to the provider’s senior managers and demanding answers in writing. He also suggests that you speak with a couple of the company’s vendors and check with the FAA for an influx of complaints.
Should circumstances deteriorate, you may want to exercise your right to require the provider to repurchase your share. If the provider cannot or will not do so, you may need to hire an attorney to sue the provider or consider putting the provider into bankruptcy. Butler concludes, “[W]ith the right counsel and the proper approach, you’ll be able to make the best out of a bad situation.”
Inside Fractionals: “Is Your Fractional Provider Going Under?”
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