Buying a Plane Outright or selecting Fractional Ownership

When it comes to aircraft ownership, the main two options are buying a plane outright or selecting fractional ownership. As a fractional owner, you own part of a plane and the ability to use it and split all associated cost with a group of people.

We sat down with the RAI Jets Director of Operations David Riley to learn more about the myths, advantages and disadvantages of fractional jet ownership and how to get the most from your investment in private aviation. David has more than thirty years in of experience in the industry and has owned many jets during his career. He helps customers acquire as well as set up management for their jets.

So what do you think are the advantages of fractional ownership versus full ownership?

Many people dream of owning a private aircraft but hesitate because of the high costs. Fractional ownership offers a fantastic solution. It allows you to enjoy all the perks of owning an aircraft while sharing the fixed costs with other owners. This makes private ownership much more affordable and accessible. One of the best things about fractional ownership is its flexibility—plans can be fully customized to fit your needs. Whether you’re looking for a share as large as 1/2 or as small as 1/16, or somewhere in between, you’ll find a plan that works for both your travel needs and budget. If you’re interested in learning more, contact us at RAI Jets to explore your options.

Are you speaking of buying a plane and leasing it back to an aircraft management company?

Yes. As a part 135 operator, RAI Jets offers the opportunity for aircraft owners to add their qualifying aircraft to our Air Carrier Certificate and allow us to charter their jet when it’s not in use. This revenue can reduce an aircraft owner’s standard fixed operating costs anywhere from 30-100% depending on the jet charter market at the time. Private jet charter is seeing a significant rise in popularity, with many people turning to it as a more convenient and flexible alternative to commercial airlines. The appeal lies in the ability to avoid long security lines, enjoy personalized service, and travel on your own schedule. We’re seeing our owners’ aircraft staying very busy as more individuals and businesses choose the ease and efficiency of private jet charter.

What about all the other services that a jet owner needs? Do your jet owners still need to work with other companies?

There’s no reason to do so. The aircraft management services at RAI Jets are comprehensive. We handle hangar space, maintenance, inspections, certification, hiring and training pilots, fueling, charter operations and even concierge, and we offer it all with economies of scale. You will usually see the same pilot in the cockpit of your plane and you still have the use of your aircraft when you want to fly, without the restriction of other schedules. Plus, you get the benefit of all of our services. One customer, whose time was very valuable, was coming to us for some a la carte services when he realized he was spending so much time arranging rental cars and hotels at his charter destinations that using our concierge service made sense. Now, we exclusively manage his aircraft.

How does RAI Jets compare to other aircraft management companies?

We’re smaller, but we work with a vast network so you get all the advantages that come with that. Based at Kalamazoo/Battle Creek International Airport, we offer affordability with strategic positioning near major hubs like Chicago, Detroit, Indianapolis and Milwaukee, and smaller destinations throughout northern Michigan. Our clients have been with us for years because we put their needs first. We are not a vendor; we are your partner with a vested interest in the success of your aircraft. And that’s priceless!

If you would like to learn more about aircraft management and how RAI Jets can meet your needs, reach out to David Riley at 800-247-2834.

We were also glad to be able to interact with educators about the job opportunities available in the industry. Our president, Becky Bakeman encourages students to think beyond the cockpit when it comes to careers in aviation.

“People think of pilots when they hear the word “aviation” but there are many opportunities in the industry, from technicians, to dispatch and scheduling, to flight crew,” she said.