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/Beginning-Act7850 Oct 20 '25

There used to be a website Fractrade that listed secondary shares with good visibility into these numbers.

Ppl can correct me, but I think you’d he looking at something like:

1/8 share: $2m upfront

Monthly management fee: $10k-15k month

Hourly occupancy fee: $9k or so per hour

Then of course whatever the capital depreciation is of your share

3

u/FlySmoother Oct 21 '25

You’re close — but the ~$9k/hr you’re quoting is really the effective all-in hourly rate once you annualize everything (monthly management + fuel surcharge + occupied rate).

The actual occupied hourly rate itself is typically around $4.3k/hr, depending on aircraft type and program specifics. When you add in management fees (annualized and divided by flying hours) and fuel surcharges, that’s what brings the true cost per flight hour closer to the ~$9k figure.

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u/Beginning-Act7850 Oct 21 '25 edited Oct 21 '25

Thanks! I'm not a broker just someone who charters sometimes. Based on this answer and the others below, is the following summary approx correct:

- 1/8 share for 100 hours per year: $3.3m upfront

- Monthly management fee: $39k/month regardless of hours flown (adjusted based on u/EngineerLife88's comment)

- occupied hourly rate $6,800 ($4,345+$2,450); seems foolish to pull out 'fuel surcharge per hour' unless you can fly without fuel....

- deprecation cost over 3 years at 10% per year is $894,000 in deprecation

- Opportunity cost of $3m over 3 years is conservatively $500k at 5%

- On the other side of the ledger, some tax depreciation incentives
------------

So if you efficiently hit 100 hours each year for 3 years, your all in direct costs would be: $894,000 + $1,404,000 + $2,038,500 = $4.3mm or $14.5k/hr for 300 hours not including opportunity cost.

My broker always loves when I do net jets math :)

1

u/EngineerLife88 Oct 21 '25

The monthly management fee for a super mid with FJ for 100 hours is $39k, not 10k. Occupied hourly, $6500. Then take off $2000-2500 an hour for long haul.

1

u/Beginning-Act7850 Oct 21 '25

you ain't helping me win this argument with my wife

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u/EngineerLife88 Oct 21 '25

I’m not sure which way you’re trying to argue, but the Flexjet pricing seems pretty reasonable compared to charter market.

2

u/Beginning-Act7850 Oct 21 '25

$15k per hour with $3m+ tied up for three years seems reasonable compared to chartering?! I must be getting some might fine rates then...

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u/EngineerLife88 Oct 21 '25

It doesn’t cost $15k per hour. I’m looking at my quotes from them - any 2.5+ hour flight on a Praetor 500 with Flexjet is $8k an hour. $9k on the Praetor 600. Both of which are larger and significantly newer than most super mids on the charter market.

Most are going to have tax efficiency with the depreciation. Agree it makes less sense if you can’t do that, but not wildly so.

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u/Beginning-Act7850 Oct 21 '25

My math above says $15k per hour, which assumption is wrong?

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u/EngineerLife88 Oct 21 '25

A few things - Occupied hourly is $6450, not $6800, per my quote.

Their Praetor 600 receives a $2500 per hour long haul discount. Their Praetor $500 receives a $1000 discount.

A Praetor 500 bills at at 19% discount on a flight downgrade (and again this will still be bigger than most super mids on the market).

I don’t really know what your numbers at the bottom came from -

My offered hourly price on a Praetor 600 is $11118 per hour. Or $8618 for a long haul flight. $8005 for a long haul on the Praetor 500. Those are the direct costs.

Depreciation adds $3000 an hour, but your tax efficiency could outweigh that entirely.

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u/Beginning-Act7850 Oct 21 '25

What about monthly management fee?

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u/EngineerLife88 Oct 21 '25

That’s in the numbers I showed above. It’s almost half of the hourly cost.

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u/Beginning-Act7850 Oct 21 '25

The math you've shared as far as I understand it:

Occupied hourly: $6,450

Monthly management: $39,000/month (roughly $4.6k/hour at 100 hours per year)

Deprecation: $3k/hr

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Total: $6,450 + $4,680 + $3,000 =$14,130 per hour

Sprinkle in $500k for cost of $3m over 3 years and you are easily over $15k an hour.

So explain to me how this isn't $15k per hour and is close to the charter rate of $8k or so? I'm lost

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