Fractional Ownership Plans
CP Knight PLC implements and manages fractional ownership plans for private aircraft owners. Fractional ownership of private general aviation aircraft is a cost-effective option to access additional aircraft types, or where outright aircraft ownership is not possible. We manage all aspects of fractional aircraft ownership for a fixed, predictable fee per flight hour.
Reasons for Fractional Ownership
There are a variety of reasons why a private owner might consider a fractional ownership opportunity over outright aircraft ownership. These include:
Prohibitive Costs: Individual private aircraft ownership is expensive, and the option to share costs with other owners while maintaining access to an aircraft for private use is sensible. In addition to the base "sticker price" of general aviation aircraft, ongoing operating and maintenance costs associated with a private aircraft are significant, and sharing these amougnst a group of owners may be attractive from a financial perspective.
Shared Management: Depending on the the fractional ownership structure, aircraft management can be vastly simplified through fractional ownership schemes, either by sharing management responsibilities with other owners, by designating one owner alone to to manage the aircraft on behalf of other owners or by collectively sharing outsourcd aircraft managment costs between all owners.
Additional Types: Owners of private aircraft will often select an aircraft that meets many, but not all, of the missioms that they'd like to fly. Fractional ownership of aircraft provides an attractive means for aircraft owners to maintain access to additional aircraft types without purchasing additional aircraft outright.
Pooled Ownership. A strategy for reducing aircraft management and operating costs, as well as for gaining access to additional aircraft types, is for multiple aircraft owners to 'pool' their assets under common ownership and operating structures, giving each aircraft owner a fractional interest in the overall pool of aircraft instead of an interest in a single aircraft. Such arrangements may involve a single ownership and operating structure, or a structure that separates equity ownership from operations.
Passive Ownership: Some aircraft owners treat aircraft as passive investment opportunities. General aviation aircraft often exhibit preferential value-retention characteristics, with some types appreciating in value over time when managed wand operated wisely. The typical investment profile for aircraft assets is to acquire aviation assets at depressed values, refurbish and enhance the asset through additional investment. Revenue may be derived from leasing or operating activities, and profit may be realized through resale of the asset during market up cycles. As part of an asset portfolio diversification strategies, some owners will include whole interests in aircraft for purely passive purposes. Owning a fractional interest in aircraft assets can further diversify and manage asset ownership risk.
Fractional Ownership Structures
There are a variety of different fractional ownership structures available to private owners, ranging from simple aircraft partnerships between a two or three owners, to small or large flying clubs, to flight departments, or to business jet 'flight card' schemes. To implement a fractional ownership plan, CP Knight PLC first completes an analysis of the aims and objectives of a proposed fractional ownership situation, and then develops a structure and model for implementing an appropriate fractional ownership plan. Thereafter, depending on the need, CP Knight PLC can provide ongoing management and support of the plan, as well as additional transactional (purchase, sale, lease, and lease return) and maintenance protection services. All of CP Knight PLC's services are either fixed-fee or per-flight hour fees, ensuring that all costs are transparent and predictable.
For More Information
To obtain a no-obligation preliminary quote for a fractional ownership plan from CP Knight PLC, please submit the form below. Thank you, and we look forward to working with you on your fractional ownership plan!