Net Jets Interchange Fees
Join Date: Nov 2004
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MGZA
if you have flown only 95 h this year 5 hours will be recredit for the following year, so you will have 105 h available next year if you fly above your 100 h contract the first few hours ( don t know the number exactly..) will be bill like your previous 100 h above those few its getting really expensive I guess to push you to buy into a higher hours contract .
As not everyone seems aware of it, Netjets sells used shared as well based on the numbers of hours or age the airplane you are bying is having, shares have differents value if you want a new airplane or used one, Lease is available as well .
One big selling point is that when or if you have to leave the program Netjets garanty by contract that they will be bying you back your share at the blue book value at the time you want to exit. That s the power of BH behind even so it cost BH 600 Musd last year to buy back those shares from owners who could not afford it anymore, no other Companies can do this in the industry.
if you have flown only 95 h this year 5 hours will be recredit for the following year, so you will have 105 h available next year if you fly above your 100 h contract the first few hours ( don t know the number exactly..) will be bill like your previous 100 h above those few its getting really expensive I guess to push you to buy into a higher hours contract .
As not everyone seems aware of it, Netjets sells used shared as well based on the numbers of hours or age the airplane you are bying is having, shares have differents value if you want a new airplane or used one, Lease is available as well .
One big selling point is that when or if you have to leave the program Netjets garanty by contract that they will be bying you back your share at the blue book value at the time you want to exit. That s the power of BH behind even so it cost BH 600 Musd last year to buy back those shares from owners who could not afford it anymore, no other Companies can do this in the industry.
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interchange rates
My understanding is the same as deskjockey, if an NJ owner uses an aircraft type other than the one they have bought in to I think the interchange ratio means they pay more than a client who has purchased that type? so if you upgrade or downgrade with NJE you possibly pay a premium over what the other clients pay. used to be the case anyway.
This was what i saw last time i looked at their ratios. it was a kind of hidden interchange fee. But as none of their pricing or ratios are in the public domain its up to the prospective client to work it out for himself... caveat emptor...
The fact they use ratios, rather than prices, makes it hard to figure out. Publishing the interchange as a € figure would be just as easy and far more transparent...........
PS the Air Partner JetCard scheme seems to be a very popular and 100% transparent alternative to Netjets :-)
dont ALL throw fruit at me at once! its almost Friday.....
This was what i saw last time i looked at their ratios. it was a kind of hidden interchange fee. But as none of their pricing or ratios are in the public domain its up to the prospective client to work it out for himself... caveat emptor...
The fact they use ratios, rather than prices, makes it hard to figure out. Publishing the interchange as a € figure would be just as easy and far more transparent...........
PS the Air Partner JetCard scheme seems to be a very popular and 100% transparent alternative to Netjets :-)
dont ALL throw fruit at me at once! its almost Friday.....
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PS the Air Partner JetCard scheme seems to be a very popular and 100% transparent alternative to Netjets :-)
I would say if you go that road you are better of having a GOOD broker who checks prior to each flight more things than only his commision and get a chartered flight meeting your minimum standards rather then one that meets only your brokers minimum standards....
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speaking from personal experience, NJE do NOT offer blue book value upon an "owner" seeking to exit from a fractional share at the point when they are obligated to repurchase your share. they offer "fair market value", less a remarketing fee. fair market value is a defined term in the contract and can be at a significant discount to blue book valuation - it is based on an appraisal conducted by a jet broker (for instance one whose primary business is selling NJ aircraft, so in their pocket). read closely the contract as they will gloss over this feature when they sell you the shares. the mechanism for valuing the shares offers some protections but doesn't really work very well and you are foolish if you expect them to offer you a fair price in difficult times... their leasing option as i understand it does give you protection on residual value but their recent behaviour in for owners has not been to offer anywhere near blue book valuation to exiting owners.
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In difficult time nobody will give you anything.. if you own a plane you get stuck with it and the cost associated untill bizness picks up again, it could be years! Netjets is not a philantropic association but you will be able to get out of the deal in bad time ! nobody else offer that option.
