Comparisons
airshares astra spx VS. TYPICAL FRACTIONAL
|
CATEGORY |
astra spx $7.0 ,MIL VALUE |
TYPICAL FRACTIONAL $7.0 MIL VALUE |
||
| Number of Owners | 4 | 4 OR MORE | ||
| Interest in Aircraft | 25% | 25% | ||
| Cost of stock | $1,750,000.00 | $1,750,000.00 | ||
| Monthly management fee | $12,500.00 | $19,000.00+ 25% or charges for unoccupied hours | ||
| Hourly cost | $1500 ( FUEL & RESERVES ) | $1800.00 | ||
| Available annual hours | 200: hrs. per year | 200 hrs. Per Year | ||
| Overnights | Parking & Crew Cost Only * | $2,544. RON & ferry costs** | ||
| Depreciation | $1,500,000.OVER 36 months | $1,50000 over 84 months | ||
| Flight crew | 2 high time airline pilots Permanently assigned to your aircraft | One corporate pilot and a trainee. You will likely never see them again | ||
| Maintenance | The best, Second to none | Factory MX by whoever is on duty. Little accountability | ||
| Personal attention | Very Personal Operation. Your name or company name plates, aboard on your flights. etc. Your aircraft is always based at your local airport. You can visit it and kick the tires anytime it's not flying. Your aircraft does not fly thousands of miles to pick up owners. | The crew doesn’t even know your name. You will never even see the plane you bought except by accident. You will be paying for 40% unoccupied hours to pick up owners spread all over the united states. |
| Note: Depreciation is computed on the Astra as a used aircraft to a salvage value of $1000,000 over 3 years/ 4 owners. Depreciation in most of the fractionals is based on a 7 year commercial schedule rather than 3 years under private useage. |
| * AirsharesPro allows any owner to RON for 3 nights before incurring ferry costs and only then if another owner has scheduled a flight.. |
| ** One large fractional Company charges the owner the greater of either 3 hours at $850.00 per hr if the aircraft remains RON ( overnight) plus $300.00 or actual hours required to de and re-position the aircraft. |
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Review of Large Fractional legal package
The following review and comparison was done by a
fully independent Aviation Consultant for and on behalf of Airshares while under commission of a feasibility study into shared aircraft
ownership.
I have read the Comparison Fractional Ownership package and have the following
impressions:
The product is over priced by comparison
The legalese and sheer volume of the agreements, contracts, etc. render the
package almost
incomprehensible. In fact, having read them, I’m still not sure what they
said.
One fact seems to stick in my mind is that the buyer
purchasing a 12.5% interest in a Citation Ultra for $825,000.00 with a $75,0000
un-refundable deposit can only fly his aircraft only 150 hours a year for which
he is charged a monthly management
fee of $7608.00 plus $1242.00 per
bh and, if he goes over the 150 hours in any 12 months, he has to pay $3045.00
per hr for the first 25 such overage hours and then $3745 for all hours above
the 25.
The costs here seem remarkably high.. The aircraft is selling
new for $6,600.00, The AIRCRAFT is free and clear for
which each owner pays $825,000 for a 12.5 % interest plus
$1242.00
an hour and $7608.00 / month compared to the AirsharesPro Falcon-10 at $340,000 for
20% ownership and $5000.00 a month plus $ 940.00 per BH.
Clearly in any comparison, the AirsharePro paperwork and end product are allot more user friendly and workable. The owners can use the aircraft whenever they wish and for as many hours as they wish. There are no unfriendly rules determining the use of the aircraft and the overall costs benefit package is certainly superior. The RON and ferry rules in the Management contract we reviewed are especially onerous.
The overuse of standard legal jargon and boilerplate
terminology is a definite put off and I doubt that any executive earning enough
to afford his own jet aircraft will have the time to wade though the package
himself.
There is another very costly little rule that an owner might easily overlook. This one involves the aircraft arriving at the airport where they have asked to be picked up and, if the owner has not called to inform the management company that he will be late, waiting only one hour and then flying away and charging him for the positioning flights.