Fractional ownership: Buy, Sell, Keep?
By Kris A. Moore

Insiders in the jetting industry argue that those with fractional jet ownerships would be better off selling their share. Market prices for fractional ownership are beginning to fall and more customers are having difficulty receiving their promised share. Many companies are attempting to delay share repurchasing and when they do repurchase they are offering less than what was originally promised to the share holders in their contracts.
Another reason behind the “sell” mentality is the declining market value of jets. In the case of fractionally owned aircraft, the frequent use begets a lower selling price which results in a lower return when the time arrives for the company to repurchase shares.
Due to the fact that the market has not yet bottomed out, insiders argue that it would be best to sell shares before the market plummets and reinvest the capital in other private aviation options that would allow for budgeting without long term contracts.
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June 30th, 2010 at 3:02 am
[...] Fractional Ownership: Buy, Sell, Keep? Insiders in the jetting industry argue that those with fractional jet ownerships would be better off selling their share. Market prices for fractional ownership are beginning to fall. [...]