Your broker structured a deal that works beautifully, for him. You signed it, flew 180 hours last year, and still lost $800k while the plane sat still.
100% ownership means 100% depreciation. 100% fixed costs. 100% downtime. 100% of the loss. Fractional ownership means 12.5% of all of that. Same aircraft. Same flying. Different math.
The most expensive thing your jet did this year didn’t involve fuel.
It didn’t involve crew.
It didn’t involve flying at all.
It simply sat there.
The ownership illusion
Full ownership feels clean. The aircraft is yours. Your tail number. Your hangar. Your schedule.
But ownership isn’t just operational control. It’s full exposure.
When you purchase 100% of a private jet, you assume 100% of the depreciation curve. Five to ten percent annual value erosion isn’t unusual in light and midsize aircraft markets, depending on age and conditions. On a multi-million dollar jet, that’s not a rounding error.
It’s capital quietly evaporating.
Add to that crew salaries, training, insurance, hangarage, management, maintenance reserves, engine programs, unexpected events. Those costs accrue whether you fly 50 hours or 250.
Ownership doesn’t scale down gracefully.
How fractional ownership actually works
The model is simpler than most people think. At Airly, here’s the process:
1. Buy a share. Acquire a 25% interest in a Phenom 100 or Phenom 300. This covers 60 calendar days of use per year.
2. Book your days. Work with our owner relations team to build your calendar. Each flying day includes unlimited flight hours within the regulatory framework.
3. Pay only when you fly. Owners only pay an at-cost hourly fee for the hours they fly, plus an annual fee to cover fixed costs (pilot, training, hangar, insurance, etc.).
4. Claim the benefits. Enjoy tax write-offs via asset depreciation and GST refunds where eligible.
5. Earn revenue when you don’t fly. Your aircraft is chartered when idle, generating income distributions back to you.
That last point is critical. Richard’s jet sits idle 287 days a year. He owns 100% of the depreciation and 100% of the fixed costs while it’s parked. Andrew’s fractional share generates charter revenue when he’s not using it. The aircraft works for him, even when he’s not flying.
What jet brokers don’t tell you
When you buy a whole jet, the broker gets paid. Commission on the sale. Maybe a finder’s fee for arranging financing. Their incentive is to get the deal done.
What they don’t tell you:
1. Depreciation is your largest cost. Not fuel. Not crew. Not maintenance. Depreciation. And you own 100% of it.
2. You’ll fly less than you think. Most first time jet owners estimate 150+ hours/year. Reality: 60-80 hours. Your fixed costs don’t care about your usage.
3. Exit is expensive. Selling a used jet takes 6-18 months. Broker fees: 5-7%. Marketing costs. Inspections. Pre-purchase evaluations. You’ll lose another 10-15% just getting out.
4. Maintenance is unpredictable. The broker’s “maintenance reserve” estimate is always low. Unexpected inspections. Parts delays. Compliance upgrades. Budget double what they tell you.
Fractional ownership eliminates all four problems. Depreciation is shared. Low usage doesn’t kill you. Exit is instant (you sell your share back to the program). Maintenance is someone else’s problem.
The brutal math, clearly stated
A jet depreciates whether it flies or not.
Crew salaries accrue whether it flies or not.
Insurance renews whether it flies or not.
Full ownership means carrying all of it.
Fractional ownership aligns cost with use.
For many business owners flying moderate annual hours, that alignment turns private aviation from an emotional acquisition into a structured asset decision.
No broker. No pitch. Just the numbers laid out honestly. See What Fractional Actually Costs You.