[ad_1]
If you are, you should think again about using it for those types of missions. If you own a Fraction and use it go oversees or international, your wasting money and hours. There are quite a few owners who use their NetJets G-550, G-V, G-IVSP and Falcon 2000 to go over the pond from New York as well as from Los Angeles and I often wonder if they even think about the cost of their flight. NetJets is brilliant at hiding costs from their owners. They don’t send you an all in bill monthly, they send you 3 different bills monthly. Some owners actually add it all up and when they analyze the hourly fees its usually double the cost of chartering the same jet.
For example I have a client who has a 1/16 fraction G-IVSP with NetJets and his typical trips are New York to Abu Dhabi and New York to Kazakhstan. He doesn’t go very long, usually a 1 day turn around, but with his NetJets G-IVSP he pays about $450k+ all in round trip. He still makes a stop and pays the same price. He could go non stop on a Global Express XRS or Gulfstream G-550 that is newer, with WIFI between $270k-$300k round trip. NetJets G-IVSP and G-450 models average between $14k-16k an hour domestic. Those costs are even higher when they go international. The other downside with using the fraction to go international is that if you only have a 1/16th share on a NetJets G-IVSP or higher, just that trip alone you would have burned 35 hours out of the 50 hours you bought. Of course most owners who do those types of trips own a lot more hours and what usually ends up happening is they purchase an additional share, so now they own 2 shares in a G-IVSP or G-450. It ends up costing a lot of money to use the fraction for these types of trips.
If you were to Charter a Jet with the same safety ratings as NetJets from New York to Abu Dhabi, London, Italy, Russia, Kazakhstan, your hourly all in prices would be between $9k-11k an hour on a Global Express, G-550, G-450 and Falcon 7X, which is a lot lower than the Fractional prices per hour. Plus you would get on newer aircraft, with WIFI and that type of aircraft would have a lot less wear and tear. The reason why I say that is because fractional companies usually put 800-1000 hours a year on their planes. A Part 135 owner typically only allows up to 400 hours a year.
I tell my clients who own NetJets G-IVSP, G-450, G-V and G-550 to only use the Fractional Share for trips 1 hour or less. The reason for this is because charter operators charge a 2 hour minimum and if your typical trip is New York to Nantucket, the charter operator and NetJets break even. For example a charter operator will charge 2 hour minimum on a G-450 and NetJets only charges 1 hour minimum, but NetJets charges $14,000 an hour and the charter operator charges $7,000 an hour x 2 hours. So on these trips there pretty neck and neck. The other plus with using the fraction on these short legs is that NetJets does not charge a short leg fee. A short leg fee is a cost that covers the engine start-up costs.
If you own a FlexJet Challenger 604 or 605 share the same type of thing applies. Yes, you may only be spending $12-15k an hour but it’s still double the cost on the international trips.
[ad_2]
