Jet Set Aero's managed full aircraft ownership program is comparable to, or less expensive than 1/4 share fractionals and gives you far greater utilization of the aircraft with more convenience. Our cost savings are a result of focusing on refurbished used aircraft and not forcing you to pay for services you don't require. Purchasing slightly used aircraft greatly reduces the depreciation costs in the first few years.
With a comparable light jet program, our three year cost savings range from around $500,000 to over $1,000,000. The cost savings for larger aircraft can be substantially higher. Contact us for your personalized prospectus.
The below spreadsheet compares our full ownership program with prices from a fractional company for 1/4 share of a Citation Mustang.
| Ownership Type: |
Light Jet Charter Card No Ownership |
Fractional Cessna Mustang 1/4 Ownership |
Jet Set Cessna Mustang 1/4 Ownership |
Jet Set Cessna Mustang Full Ownership |
|---|---|---|---|---|
| Equity Share: | 0% | 25% | 25% | 100% |
| Acquisition: | $0 | $869,000 | $375,000 | $1,500,000 |
| Down Payment:* | $0 | $130,350 | $56,250 | $225,000 |
| Payments: | $0 | $5,556 | $1,974 | $7,895 |
| Monthly Management Fee:** | $0 | $6,450 | $3,000 | $10,000 |
| Insurance: | $0 | $0 | $250 | $1,000 |
| Hangar: | $0 | $0 | $250 | $1,000 |
| Total Monthly Cost: | $0 | $12,006 | $5,474 | $19,895 |
| Hours/Year: | 200 | 200 | 200 | Unlimited |
| Range: | 1,500 Miles | 1,300 Miles | 1,300 Miles | 1,300 Miles |
| Ideal number of PAX: | 5-7 | 4-5 | 4-5 | 4-5 |
| Hourly Rate:*** | $5,000 | $1,090 | $985 | $985 |
|
Yearly Operating Cost: (200 hours/year) |
$1,000,000 | $218,000 | $197,000 | $197,000 |
| Total Yearly Fixed Costs: | $0 | $144,072 | $65,685 | $238,740 |
| 3 Year Depreciation: | $0 | $304,150 | $37,500 | $150,000 |
| Total 3 Year Cost:**** | $3,000,000 | $1,390,366 | $825,555 | $1,457,220 |
|
Equity Payments 3 Years:
|
$0
|
$116,036
|
$33,339
|
$133,357
|
|
Total 3 Year Realized Cost:
|
$3,000,000
|
$1,274,330
|
$792,216
|
$1,323,863
|
The below spreadsheet compares our full ownership program with prices from a fractional company for 1/4 share of a Phenom 100.
| Ownership Type: |
Light Jet Charter Card No Ownership |
Fractional Phenom 100 1/4 Ownership |
Jet Set Phenom 100 1/4 Ownership |
Jet Set Phenom 100 Full Ownership |
|---|---|---|---|---|
| Equity Share: | 0% | 25% | 25% | 100% |
| Acquisition: | $0 | $709,500 | $500,000 | $2,000,000 |
| Down Payment:* | $0 | $106,425 | $75,000 | $300,000 |
| Payments: | $0 | $4,536 | $2,632 | $10,526 |
| Monthly Management Fee:** | $0 | $19,400 | $3,000 | $10,000 |
| Insurance: | $0 | $0 | $300 | $1,200 |
| Hangar: | $0 | $0 | $250 | $1,000 |
| Total Monthly Cost: | $0 | $23,936 | $6,182 | $22,726 |
| Hours/Year: | 200 | 200 | 200 | Unlimited |
| Range: | 1,500 Miles | 1,300 Miles | 1,300 Miles | 1,300 Miles |
| Ideal number of PAX: | 5-7 | 4-5 | 4-5 | 4-5 |
| Hourly Rate:*** | $5,000 | $1,480 | $1,034 | $1,034 |
|
Yearly Operating Cost: (200 hours/year) |
$1,000,000 | $296,000 | $206,800 | $206,800 |
| Total Yearly Fixed Costs: | $0 | $287,232 | $74,178 | $272,712 |
| 3 Year Depreciation: | $0 | $248,325 | $50000 | $200,000 |
| Total 3 Year Cost:**** | $3,000,000 | $1,998,021 | $892,934 | $1,638,536 |
|
Equity Payments 3 Years:
|
$0
|
$94,738
|
$44,452
|
$177,809
|
|
Total 3 Year Realized Cost:
|
$3,000,000
|
$1,903,283
|
$848,482
|
$1,460,727
|
*Additional initial costs include prepurchase inspection and pilot training. Approx. $25,000.
**Monthly management fee includes: Pilot salaries, cleaning, and inspection & maintenance compliance oversight.
***Hourly rate includes: fuel, airframe & engine inspection, maintenance, and overhaul reserves.
****Additional costs may include: Landing & parking fees, hangar storage at destination airports, catering, pilot stipend, flight support, and international fees and taxes.
Acquisition Costs: With us, you pay the actual cost of acquisition for the aircraft. When you purchase a fractional share, you and the other owners may be paying much more than the actual value. You may pay the price of a brand new aircraft and end up with one that is used. And if you ever want to sell your share, you will likely take a substantial loss and find the process to be rather difficult.
Down Payment: Downpayment is typically 15% of the purchase price. Although a downpayment is listed under the fractional aircraft in the spreadsheets above, it may not be possible to finance. You may have to pay the total cost of the share up front. With our partnership program, financing would be available.
Monthly Management Fee: In the above figures, one company charges a higher acquisition cost and lower monthly management fees, whereas the other company has lower acquisition costs and a very large management fee. Some companies charge very high monthly management fees because they are essentially purchasing multiple aircraft to be used as a backup when more than one owner wants to use the aircraft. You are also paying for pilots to be available at anytime. If you have a set schedule and don't need 24 hour pilots, why should you pay for them? If your aircraft goes down for maintenance, you can charter as a backup.
Within the monthly management fee is the pilot's salary. Fractionals very often pay low salaries for light jets because these light jets are often considered a "stepping stone" to larger jet aircraft. You end up with inexperienced pilots who have higher accident rates. Fractionals have on average 3 times the accident rate of corporate aviation. Our minimum standards for pilots mean we have to pay higher salaries and our base pay is 50% higher than the average pay for the industry, but experienced pilots are, on average, far safer.
Hourly Rate: Fractional companies often charge premiums to the hourly rate. You pay the actual costs of the aircraft's operation with our programs.
Depreciation: New aircraft can depreciate 1/3 or more of their value in the first three years. This is why we recommend slightly used aircraft. The differences between a 6 or 7 year old aircraft from a new aircraft of the same model are often minimal, and frequently older aircraft can be upgraded to match new aircraft specifications. In addition, with more shares comes more use of the aircraft. If you have 1/4 share in an aircraft, you can expect that aircraft to be used 4 times as much and depreciate faster due to the increased flight time on the airframe.