Charter & Fractional
Many shocked as frax values drop
Fractional aircraft owners who were assured five years ago–when business aviation was booming–that their shares would retain 75 to 80 percent of their valu

Fractional aircraft owners who were assured five years ago–when business aviation was booming–that their shares would retain 75 to 80 percent of their value are discovering to their dismay that those shares have in some cases retained as little as 50 percent of the original worth. “It’s the first real test of the fractional-ownership system,” said one observer, “and some of the share owners aren’t liking what they’re seeing.”

According to Mike Riegel, founder of the Dallas consulting firm Fractional Insider, shares are not only being revalued at considerably less than anticipated; if the share owner opts to leave the program and sell his share back to the provider, “He’s being charged a resale fee of as much as 12 percent of the revalued share.”