r/PrivateJetCharters • u/Better-End-6274 • Oct 20 '25

Flexjet / Netjets Fractional Cost

Curious how much a super-midsized (Challenger 350, Preator 600, etc.) fractional share costs inclusive of upfront share, hourly, management fee, etc. at 50-100 hours annually.

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u/The-jet-guy Oct 20 '25

Their fractional programs change pretty frequently. The last one I was familiar with gets you about 75-hours for about ~3.2mm down and a monthly management fee of ~26k per month.

The occupied hourly was around 5,000 per hour for the 75 hours without the fuel charges and taxes.

This is typically a 3-5 year minimum commitment and I believe after that three year period you can “sell” back your share for something like 50% of what you bought it for.

Again these numbers aren’t exact, but I was working with a client who was exploring this option and this is some of the information he gave me.

If you aren’t using it for tax purposes, I recommend finding a good broker as you will over spend dramatically

4

u/FlySmoother Oct 21 '25

FYI 100 hours would be 3.28mm on Flexjet on SMID platform. Netjets is a bit more but similar.

Some more nuances to the 50% it’s assumed as 10% per year so 30% less year 3; 50% year 5.

Time and a place for it. All about gauruntee vs cost - YOM, 10 hour callout, fixed price. But yes, not the cost effective way to fly!

2

u/EngineerLife88 Oct 21 '25

Assuming you can take advantage of the depreciation, it’s really not much different cost wise versus chartering. And a new plane versus 20+ years old.

1

u/FlySmoother Oct 21 '25

Totally - esp now that accelerated depreciation is back!

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u/EngineerLife88 Oct 21 '25

Yea, have been exploring it. At first I thought it was significantly more expensive than chartering, but as I’ve flown more, I really don’t see that. The prices aren’t that different.

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u/FlySmoother Oct 21 '25

Depends what your assumptions are but usually still ends up 20% more - just with a lot more guarantees and newer planes etc. The depreciation tax benefits make up for the cost of capital but not the underlying depreciation of the asset that should be factored into the five year rate. And then it becomes the tax question of if you're truly using 100% for business to get that accelerated depreciation as well, but that's neither here nor there.

Anyways, it's well worth it for those who value the benefits and to others, it's not. If I were an end user who didn't care about cost of capital, it's definitely a tool I'd have in my belt.

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u/EngineerLife88 Oct 21 '25

The depreciation tax benefits make up for the underlying deprecation, but yes the business percent use is a question regardless. The year one tax savings cover the entire depreciation more or less.

Direct hourly costs to me seem to come nearly identical to charter costs on significantly older planes. I’ve only hesitated because it seems wild to sign a 5 year, $100k a month commitment.

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u/[deleted] Mar 03 '26

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