Fractional Ownership

My latest fractional
partnership deal involves this Cessna 414. I was
looking for an aircraft that would deliver near King
Air performance, in near King Air comfort, at a lower
operating cost per hour than any turbo-prop. I settled
on the Cessna 414.
The piston twin market is very soft right now, and
for the price of a couple of luxury cars, a small
company or group of individuals can own true cabin
class air transportation. It is fair to say that cabin class
piston twins are selling today for 1995 prices, so if you
have a legitimate use, they are a true bargain.

What I do is split these aircraft between multiple
owners. This makes the initial capital requirement
lower, reduces the direct costs (insurance, hangar, non
scheduled maintenance) by splitting them between the
partners and the direct operating costs (fuel, pilot,
landing fee) are paid by the partner that is using the
plane. The trick is to find two to four owners with non
conflicting use requirements.
We make the whole thing easy. We manage, fly and
maintain these aircraft, and most of the time, the
partners never see each other.

A maximum of between 300 and 400 flight hours
annually gives great asset utilization, while not
creating any real scheduling conflicts.
In this case, each partner agrees to pay $100 per
flight hour into an engine reserve fund, and $65 per
hour into a scheduled maintenance fund. The engine
reserve money is deposited in a money market
account. If the engines are never replaced or
overhauled before the plane is ultimately sold
(sometime in the future), then the money is returned to
the partners. If the engines require replacement or
overhaul, the funds are there.
Insurance qualified pilots are provided for $300 per
day, (plus expenses), and a qualified copilot costs $150
per day for those owners who need or want one.
This aircraft is for the exclusive use of the owners
and their friends, family and associates and is not
utilized in any commercial or air charter operations.
Maintenance is performed by Flight Support
Services LLC at a rate of $65 per labor hour and parts
are billed at cost plus 10%. The aircraft are maintained.
and flown to part 135 (air carrier) standards.
A monthly statement is sent to each partner with an
invoice for their respective use costs, accompanied
with receipts for verification.
This is very similar to what we were doing with the
King Airs, except in this case there is no revenue
stream generated from charter use, nor is there the
associated additional expense.
All of the scheduling is done on-line or on the phone
and the calendar is posted on the web.

The two 414's are already sold out. I am now
working on a third aircraft. If you have any interest,
contact me for more details or
call me at 561-738-7056.

If you have never considered private fractional
ownership, I think you will be surprised at just how
affordable it really is.
or
If you fly with us just once, you will have a tough
time getting on the airlines ever again.
Michael Leighton