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Fractional Ownership
The Program
Questions & Answers
Management & Agreements
TYPICAL COMPARISON
BETWEEN
CARIBEX & A TYPICAL FRACTIONAL
|
CATEGORY |
CARIBEX
$7.0 ,MIL VALUE |
TYPICAL FRACTIONAL
$7.0 MIL VALUE |
| Number of
Owners |
4 |
4 OR MORE |
| Interest in
Aircraft |
25% |
25% |
| Cost of
stock |
$1,750,000.00 |
$1,750,000.00 |
| Monthly
management fee |
$12,500.00 |
$19,000.00+ 25%
or charges
for unoccupied hours |
| Hourly
cost |
$1500 ( FUEL
& RESERVES ) |
$1800.00 |
| Available
annual hours |
200: hrs. per
year |
200 hrs. Per
Year |
| Overnights |
Parking & Crew
Cost Only * |
$2,544. RON &
ferry costs** |
| Depreciation |
$1,500,000.OVER 36 months |
$1,50000 over
84 months |
| Flight crew |
2 high time
airline pilots Permanently assigned to your
aircraft |
One corporate
pilot and a trainee. You will likely never
see them again |
| Maintenance |
The best,
Second to none |
Factory MX by
whoever is on duty. Little accountability |
| Personal
attention |
Very Personal
Operation. Your name or company name plates,
aboard on your flights. etc. Your aircraft
is always based at your local airport. You
can visit it and kick the tires anytime it's
not flying. Your
aircraft does not fly thousands of miles to
pick up owners. |
The crew
doesn’t even know your name. You will never
even see the plane you bought except by
accident. You will be paying for 40%
unoccupied hours to pick up owners spread
all over the united states. |
Note:
Depreciation is computed on the Astra as a used
aircraft to a salvage value of $1000,000 over 3
years/ 4 owners. Depreciation in most of the
fractional is based on a 7 year commercial schedule
rather than 3 years under private usage.
* Caribex
allows any owner to RON for 3 nights before
incurring ferry costs and only then if another owner
has scheduled a flight..
** One large
fractional Company charges the owner the greater of
either 3 hours at $850.00 per hr if the aircraft
remains RON (overnight) plus $300.00 or actual hours
required to de and re-position the aircraft.
Review of Large
Fractional legal package
The following review and
comparison was done by a fully independent Aviation
Consultant for and on behalf of Caribex while under
commission of a feasibility study into shared
aircraft ownership.
I have read the Comparison
Fractional Ownership package and have the following
impressions:
The product is over priced by
comparison
The legalese and sheer volume
of the agreements, contracts, etc. render the
package almost incomprehensible. In fact,
having read them, I’m still not sure what they said.
One fact seems to stick in my
mind is that the buyer purchasing a 12.5% interest
in a Citation Ultra for $825,000.00 with a $75,0000
un-refundable deposit can only fly his aircraft only
150 hours a year for which he is charged a monthly
management fee of $7608.00 plus $1242.00 per bh
and, if he goes over the 150 hours in any 12 months,
he has to pay $3045.00 per hr for the first 25 such
overage hours and then $3745 for all hours above the
25.
The costs here seem remarkably
high.. The aircraft is selling new for $6,600.00,
The AIRCRAFT is free and clear for which each
owner pays $825,000 for a 12.5 % interest plus
$1242.00 an hour and $7608.00 / month compared to
the Caribex Falcon-10 at $340,000 for 20% ownership
and $5000.00 a month plus $ 940.00 per BH.
Clearly in any comparison, the
caribex paperwork and end product are allot more
user friendly and workable. The owners can use the
aircraft whenever they wish and for as many hours as
they wish. There are no unfriendly rules
determining the use of the aircraft and the overall
costs benefit package is certainly superior. The RON
and ferry rules in the Management contract we
reviewed are especially onerous.
The overuse of standard legal
jargon and boilerplate terminology is a definite put
off and I doubt that any executive earning enough to
afford his own jet aircraft will have the time to
wade though the package himself.
There is another very costly little rule that an
owner might easily overlook. This one involves the
aircraft arriving at the airport where they have
asked to be picked up and, if the owner has not
called to inform the management company that he will
be late, waiting only one hour and then flying away
and charging him for the positioning flights
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