Fractionalization & Co-Ownership

Fractionalization (shared ownership by three or more) allows the owner to reduce his initial investment by purchasing a portion of the ownership of the asset. This reduction of initial investment allows a purchaser to enjoy, for a contracted portion of time, all the benefits of full ownership without having to pay the full price and upkeep of the asset.

Under a fractional ownership or a limited liability ownership agreement, a company or individual purchases, or leases, a fractional interest in one aircraft, just as they might acquire an interest in a vacation timeshare unit. They can use their own, similar, or identical aircraft for a certain number of hours per year, just as an owner in a timeshare vacation home can use the unit a specified number of days or weeks per year. In the event a client's assigned aircraft is unavailable at the requested time, the client has access to a larger pool of identical or similar aircraft for use.

Co-ownership of an aircraft (shared ownership by two parties) is a simpler structure than fractional ownership whereby the owners share in the ownership of the corporation that owns the aircraft under terms and conditions that are mutually agreed upon.