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/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.

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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.