Netjets, as the biggest example,does not make it's money selling shares, but reselling airplanes.
They buy them by the hundred and pay half price. The owner buying a share is being charged based on the full price. After a few years when this owner wants to get rid of his share, Netjets pays him a part of the "marketprice". (so the owner payed for the depreciation)Then they sell the airplane with a big profit.
E.g. jet x new: 7 million, (bought for 3,5 million), after a few years sold to third party for 4,5 million, profit 1 million dollar and the share owner payed all the other cost.....
If more owners knew about it, I am not so sure if would accept that "fake " new price of an airplane they bought a share from.........
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Hawker pilot this really shows that you have no clue:
- Prospects are told NJ makes money on the initial sale, buy them cheap sell them at market rate
- There is a percentage in the contract that is charged on the sales price as it is with FlexJet/Flight Options/Citation Shares etc.
- The sales price is the actual market price based on third party information and regardless of the fact if they can off load it or not.