Fractional ownership of an aircraft

Fractional ownership is the purchase of a share in a specific aircraft with the right to a specified annual flight time, while a management company handles the operation. The entry threshold is significantly lower than a full purchase, fixed costs are shared between co-owners, and the share remains your asset and is sold separately from the aircraft itself. This scheme is feasible for aircraft with flight hours of approximately 50–200 per year.

When a share is more profitable than both a purchase and a charter

A private jet begins to pay for itself at approximately 200 flight hours per year: below this threshold, fixed costs are spread over too few hours. Chartering, on the other hand, ceases to be profitable after 50–70 hours, when the overpayment for each flight amounts to a cost comparable to the cost of maintaining the aircraft itself. The space between these limits is the fractional ownership zone.

What are the shares and how many hours do they give?

The standard entry point to international programs is one-sixteenth of a share, which equates to approximately 50 flight hours per year; one-eighth provides approximately 100 hours. In two- or three-partner schemes, the shares are larger: half of the aircraft provides 150–200 hours and de facto primary ownership. The larger the share, the lower the cost per flight hour and the greater flexibility in choosing flight dates.

What does the cost consist of?

The key thing to understand about the scheme is that expenses are split into two parts. Fixed costs—crew and their training, parking, insurance, engine and airframe maintenance programs, technical and commercial management—are split equally between the co-owners. Variable costs are paid by the pilot: fuel, airport and navigation fees, and crew travel expenses are calculated based on the actual flights you fly. You pay nothing for anyone else's flights.

Example: half Legacy 650

The Legacy 650 is a good example, as it's difficult to load this aircraft single-handedly. The 15.18-meter-long, 1.83-meter-tall cabin seats 13 passengers and is divided into zones for working, sleeping, and holding meetings on one shoulder. The baggage compartment, at 8.1 cubic meters—enough for 58 suitcases—is a rarity for this class, and it's perfect for carrying a family, skis, or equipment. Its 7,223-kilometer range allows for direct flights to Almaty-London, Moscow-Beijing, and Abu Dhabi-Beijing. Its cruising speed is 858 km/h, its takeoff distance is 1,750 meters, and it's powered by two Rolls-Royce AE 3007A2 engines and Honeywell Primus Elite avionics.

Share Economics in Legacy 650

An aircraft with flight hours costs around $12 million, so half the cost is $6 million instead of $12 million. Fixed costs, with a combined flight time of 300 hours per year, are around $1 million, or $500,000 per co-owner, while variable costs are $4,680 per flight hour. If each of the two flies 150 hours, the annual cost is approximately $1.2 million, or about $8,000 per hour.

What does this offer against the other two options?

The same 150 hours on the same type of charter at our rate cost the same $1.2 million—the money is comparable, but you end up with a share in the aircraft worth $6 million, not just a closed flight. Sole ownership, with the same 150 personal hours, yields around $11,000 per hour: fixed costs remain the same, and there's no one to split them with. Unused hours can be allocated to commercial operations, which then shifts the calculation even more in favor of the share.

How are dates divided and what happens during peak season?

Access to the aircraft is specified in the contract: the application deadline, the guaranteed aircraft availability, and rules for peak dates such as New Year's holidays, major exhibitions, and sporting events. In two- or three-owner schemes, priority is rotated: the right to first choice changes from one owner to the next each year. This section of the contract is more important than the hourly rate, as it determines whether you'll fly when you need to.

The share remains your asset

You own a share in a specific aircraft, not a membership: it's reflected on the balance sheet and can be sold, pledged, or transferred. Unused hours can be used for commercial flights—the charter partially offsets fixed costs. The downside is the same as with an outright purchase: the share depreciates along with the aircraft, and the aircraft's age at the time of release has a greater impact on the final outcome than the program's terms.

How it works in Kazakhstan and neighboring countries

There are no ready-made programs comparable to those of international operators in the region, so a viable solution is a deal between two to four co-owners with a joint ownership company, a management agreement, and written operating regulations. The aircraft is registered in the chosen jurisdiction, and operation is transferred to the company with the air operator certificate. We've been through this process with imports into Kazakhstan, Uzbekistan, Kyrgyzstan, Mongolia, and Azerbaijan and know where the scheme runs into customs and taxes.

What does JetHunter take on?

We select an aircraft based on the combined profile of the co-owners, calculate the economics of each share, and help assemble a partner team with compatible routes and seasonality. Next comes a pre-sale inspection, transaction structure and registration jurisdiction, an agreement between the co-owners with specified dates, operator selection, and commissioning. We also support the exit process: share valuation and buyer search.

Describe your needs—how many hours per year you plan to fly, which routes, and your budget—and we'll calculate what's most cost-effective for you: a share, your own aircraft, or a flight log. The calculation takes one business day.