Fractional Ownership v AOC
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Fractional Ownership v AOC
I know of several former privately owned-aircraft which are now "fractionally owned" and flying the new "owners" to all intents and purposes at commercial rates.
Effectively, the fractional owner only owns a tiny portion of the capital, and some of the capital cost is amortised into the hourly rate.
Is this in anyway illegal?
If not, how will smaller AOC operators compete against fractionally owned aircraft?
Effectively, the fractional owner only owns a tiny portion of the capital, and some of the capital cost is amortised into the hourly rate.
Is this in anyway illegal?
If not, how will smaller AOC operators compete against fractionally owned aircraft?
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Fractional ownerships within EASA-land have to have an AOC. That's why NetJets have one.
Anyone that's offering fractions without an AOC is operating illegally, pure and simple. Of course, you may find that there's a clever lawyer trying to use the loopholes involved in leasing. This is very common, although very few efforts are really watertight if challenged
Anyone that's offering fractions without an AOC is operating illegally, pure and simple. Of course, you may find that there's a clever lawyer trying to use the loopholes involved in leasing. This is very common, although very few efforts are really watertight if challenged
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Fractional ownerships within EASA-land have to have an AOC. That's why NetJets have one.
Anyone that's offering fractions without an AOC is operating illegally, pure and simple. Of course, you may find that there's a clever lawyer trying to use the loopholes involved in leasing. This is very common, although very few efforts are really watertight if challenged
Anyone that's offering fractions without an AOC is operating illegally, pure and simple. Of course, you may find that there's a clever lawyer trying to use the loopholes involved in leasing. This is very common, although very few efforts are really watertight if challenged
NetJets has AOC, cause they they fly charters as well.Yogi
NetJets in the US have an AOC for their card programme (block charter). They can operate fractional flights under subpart K of FAR 91
In Europe they have an AOC for the fractional and card pogramme. There are no provisions (yet) for fractional ownership programmes under EU OPS. This should fall under EU OPS 2 in the future, I guess.
NetJets is obviously a commercial operator and as such needs an AOC even for flights with fractional owners.
Now, and this is me guessing, if a group of people decided to share an aircraft (like a group sharing a Cessna 150) I guess this could possibly be done without an AOC if no commercial operator is involved that charges money to operate the aircraft.
Anybody with more info on this?
In Europe they have an AOC for the fractional and card pogramme. There are no provisions (yet) for fractional ownership programmes under EU OPS. This should fall under EU OPS 2 in the future, I guess.
NetJets is obviously a commercial operator and as such needs an AOC even for flights with fractional owners.
Now, and this is me guessing, if a group of people decided to share an aircraft (like a group sharing a Cessna 150) I guess this could possibly be done without an AOC if no commercial operator is involved that charges money to operate the aircraft.
Anybody with more info on this?
Last edited by 733driver; 17th Aug 2010 at 20:27.
Thread Starter
There are already several privately operated aircraft flying around under "fractional" ownership, where the majority shareholder amortises fixed costs by charging an hourly rate to smaller shareholders.
As far as I know, this is legal - but clearly an owner who owns just one aircraft on an AOC so that he can charter it out to recoup some of the fixed costs is going to switch business model if this is the way forward.
As far as I know, this is legal - but clearly an owner who owns just one aircraft on an AOC so that he can charter it out to recoup some of the fixed costs is going to switch business model if this is the way forward.
