How is fractional different from chartering or time sharing?

A: There are many. To summarize them briefly, in fractional the buyer owns an asset on its books which qualifies for depreciation and other tax benefits, and which may have value at the end of the (typically, 5 year) program agreements. When chartering, the chartering party only has a business expense deduction (if eligible), and a canceled check or credit card charge at the end of the flight.

Charter agreements rarely guarantee the availability of aircraft or crew, unless the itinerary is settled well in advance. In fractional programs, aircraft and crew availability is guaranteed for almost any itinerary, on relatively short notice. Tax depreciation for aircraft operated in a fractional program is typically 5 years, but it is 7 years for aircraft placed in a charter arrangement with a Part 135 operator.

In chartering there are usually explicit charges for "deadhead" or ferry time needed to get an ... more.

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