The tough part about the childhood game of musical chairs is knowing that some fellow party goer gets the axe every time the music stops. Worse, it could be you if you aren’t fast enough in terms of lunging for that chair. While it would have been a stretch to say this about fractional ownership (or new positions in an Eclipse!) years ago, the fact is that we did.

Most sober folk knew the model wasn’t sustainable and they also knew that any (rare) profitable quarter was generated from the sheer volume of new share sales and the repurchase of old ones at a ridiculous discount.

What now?

The good news is that private jet ownership isn’t going away.

The bad news is that if you don’t know where you stand (value wise) you’ll have a tough time getting a fair price or valuation for your share, or in some cases any money at all. The beginning of the largest transformation in the space began with the announcement of cancellations of multiple billion dollar orders of jets and record losses amongst the industry’s biggest players. In some cases the losses exceeded the prior year’s reported gross income. (Digest that for a moment: How do you record a loss larger than your prior year’s gross sales? Mere mortals struggle with such concepts. Fortunately, mere mortals can’t or won’t buy fractional shares.)

What to do?

The new era of private travel will have owners that exhibit three qualities:

As long as we didn’t scare you too much and you think you have a few extra questions, why not email us to to set up a time to learn more about how we help fractional owners and others navigate business aviation.

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