Types of Ownership

Once you’ve decided to consider aircraft ownership, it’s important to recognize that one size doesn’t fit all and that there are many options, depending on your individual preferences and requirements. Sterling is expert at helping potential owners sort through the options and make the most cost-effective decisions. Here are the three most popular types of aircraft ownership:

Full aircraft ownership

Purchase or lease of a complete aircraft, either by an individual or a relatively small number of individuals through joint ownership. Often accomplished via a partnership or limited liability corporation (LLC).

• Advantages: Highest travel flexibility and scheduling availability; tax benefits along with asset preservation through managed depreciation; ability to generate charter revenue and offset costs; personal relationship with your aircraft and crew; access to all maintenance activities, scheduled and unscheduled; ability to choose your management company and program; ability to choose your aircraft from a large pool of new and pre-owned models; often best value for frequent flyers
• Disadvantages: Up-front capital outlay higher, typically not economically appropriate for infrequent users (less than 150-200 hours per year)

Fractional ownership

Partial interest in an aircraft managed by a fractional provider. Typically a five-year contract, sold in 1/16th ownership increments, each representing 50 hours.

• Advantages: Ease of entry via a bundled program and ability to purchase a small share, predictable pricing, a potential option for those who fly less than 150-200 hours per year
• Disadvantages: Rigid contract terms, high infrastructure and management costs built in, rapid asset depreciation due to high aircraft utilization within large fleet, limited access to "your plane," no ability to choose your crew, must choose aircraft types offered by fractional company, high hourly cost
  
  

Jet card fractional ownership

Purchase of a set number of hours, typically 25 or 50, providing access to a fractional fleet. Similar in function to charter cards or block charter programs. Sterling provides its program charter customers access to a jet card as a way of enhancing point-to-point travel flexibility, especially when the trip doesn’t include a Milwaukee departure or arrival.

• Advantages: Extreme simplicity and ease of entry, flexibility similar to charter programs, no long-term obligation
• Disadvantages: By far the highest cost on a per hour flown basis