In his most recent contribution to Business Jet Traveler, Shaircraft CEO, James Butler, explains why, when opting out of a fractional contract early, selling your share back to the provider may not be your best bet.
Butler cites many problems with selling shares back to the provider, including the loss of unused flight hours for which you’ve already paid management fees, unfair provider share valuations, and hefty remarketing fees.
“Selling to a third party rather than to your provider holds many potential advantages,” notes Butler. “If you have much flight time remaining, below-market management fees or other favorable contract terms, these benefits would be lost in a sale to your provider, but may be captured in a third-party sale.”
If your contract restricts third-party sales, Butler explains that other options may be available – from a creative legal restructuring to transitioning to a different program with the same provider, such as a jet-card. In closing, he writes, “If you find that your fractional investment just isn’t working, you can follow the costly exit ramp laid out by your provider, or you can travel a road less taken…”
If you are interested in selling your share to a third party, contact Shaircraft CEO, James Butler, for a complimentary consultation.
Inside Fractionals: “Making an Early Exit”
Download in PDF format (198kb)
