Filed under: Wings
Companies and individuals are selling their private jets in droves but is it also time to sell off fractional jet shares too? James Butler, an attorney writing for Halogen Guides seems to think so. He cautions that if own a fractional jet share you might want to sell even though share values are in decline. He points out that because fractional jet owners are more than customers they are partners with their jet providers they could be in trouble if the jet provider goes out of business. Part of the worry is that the agreements with providers state that the company will buy back your share based on your aircraft's fair market value. But now some fractional companies don't have ready cash and are hoping to delay repurchasing shares. Also as the market floods with preowned aircraft for sale, fractional aircraft, which have higher mileage, become harder to sell. Butler says that the it may be advisable to sell your share while you can, reclaim your capital and switch to another option like using a fractional jet card.