Fort Lauderdale Fractional Purchase or Sale Attorneys Facilitating a Beneficial Fractional Ownership Opportunity
Leasing or acquiring an airplane isn’t the right financial path for every airplane owner. As an alternative, fractional ownership allows multiple airplane owners to share the use and associated costs of purchasing and operating an aircraft—without the hefty price tag and commitment.
Suppose you fly more than 50 hours and 400 hours per year. In that case, fractional jet ownership is more cost-effective than owning an airplane outright. The associated costs of management, maintenance, and general upkeep are high.
Fractional ownership offers airplane availability, shared costs, and responsibility. It is a flexible way to become an airplane owner and achieve your aviation dreams without financially overextending yourself.
Aero Law Center can help airplane owners mutually agree on a fractional ownership option. Schedule a consultation with our international fractional purchase or sale lawyers to get the confidence and peace of mind to execute your aviation dreams.
What is a Fractional Purchase?
A fractional jet ownership arrangement affords one or more operators to share in jet ownership through shares or equity in the aircraft. With this stake in the game, operators can use the plane for a certain number of hours each year, as outlined in the contract. Prices depend on the size and type of jet, though costs usually start around $200 per hour.
A multi-year management agreement—at least five years in many cases—must be signed to enforce the deal and hold all parties accountable for shared costs. Our aviation attorneys can ensure less stress and more peace of mind as we help multiple parties reach a fair agreement.
Additional fees are often included, such as annual and general maintenance and upkeep costs. Generally, operators spend at least $100,000 to purchase a fair amount of shares in an aircraft for business or personal use.
Studies show that more people are interested in private air travel as an affordable and accessible means for increasing business growth or for recreational travel. A great opportunity to learn more about fractional ownership and if it’s right for your business is through our consultation. Speak with our lawyers today: 954-869-8950.
What Does a Fractional Arrangement Entail?
In a fractional ownership arrangement, shares are sold to multiple owners based on 800 occupied hours. The hours are sold in fractions. The cost is divided among the total number of co-operators, and each person is responsible for their operational share.
When working with operators in a fractional ownership arrangement, our international fractional purchase or sale lawyers advocate for you and ensure a seamless transaction among other operators that remove potential liabilities. The essential documents involved in the purchase include:
- A purchase agreement that establishes the terms and conditions between provider and buyer, and a limited power of attorney that allows the provider to change the name(s) on each registration every time a share is sold
- A management agreement that outlines terms and conditions, and the level of service
- An agreement that includes all owner signatures
Suppose you’re thinking about this ownership opportunity or are ready to proceed with an agreement. In that case, our aviation lawyers can share our insights and provide informative guidance as you make the best decision for you or your business. Consider a brief call with our attorneys to learn what a fractional arrangement entails: 954-869-8950.
What are the Benefits of a Fractional Purchase?
Fractional ownership is an excellent choice for private operators who want the convenience of owning a jet for personal or commercial use but don’t want to invest in all the costs and management of aircraft ownership. Operators can customize the amount of equity or shares to match their specific needs while the costs spread out among multiple owners.
In such an arrangement, flying time typically ranges between 50 and 400 hours, and most jet shares will become multiple of one-sixteenth. In most cases, agreements run for numerous years and should clearly outline the responsibilities and expectations for all parties, from time allotment to costs to maintenance and upkeep. Our aviation lawyers can set the tone for an amicable fractional jet ownership arrangement with an enforceable contract.
The benefits of international fractional purchases include the following:
- Flexible availability of the aircraft
- Reduced flying costs
- Greater privacy
- Multiple jet options to choose from
- Personalized investment opportunities
Depending on your circumstances, fractional ownership might be your best move. See if Aero Law Center can serve your aviation needs with a brief call: 954-869-8950.
How Does Fractional Ownership Compare with Ownership or Leasing?
Fractional ownership is a concept that leverages shared ownership, the exchange of dry leases between two owners, and the use of a management company. A dry lease is a lease of an aircraft without any crewmembers involved, only using an airplane.
When considering fractional ownership versus leasing versus right, it’s a matter of budget, purpose, lifestyle, and expectations. For instance, if customization is essential to you, purchasing and designing an aircraft from scratch might be your best option. Alternatively, leasing an aircraft makes sense if you have specific intentions a lease affords, such as fixed monthly payments, flexibility, and less risk.
Our aviation attorneys at Aero Law Center are instrumental in guiding our clients to the correct ownership option and driving structured contract terms that prevent legal problems and financial harm.
Address your concerns, learn more about our legal process or get your questions answered when you utilize our complimentary consultation. Call Aero Law Center at 954-869-8950 to speak with our experienced international fractional purchase or sale lawyers.