By Jeffrey Reis
If you have more than one fractional agreement, you have the benefit of options. Every flight is a chance to choose and a chance to save. But every flight also runs the risk of unintentionally overspending, depending on which contract you use at that time.
From our experience, we know that multiple contracts may look pretty similar. Same terms. Same conditions. Same deals, right? Nope. Every contract is different, and each one will provide its distinct opportunities to save – or risks to leave money on the table.
The truth is that fractional agreements are so packed with small print and dense terms that most owners often overlook some of the key details that could spell costly oversight.
You may not have the time, the patience or even the knowledge to see, recognize and understand the subtle differences between the contracts and terms – and that’s why we do the work for you.
Here’s a recent example of what we did for a client’s benefit.
A Tale of Two Shares
One of our clients owns two shares in Gulfstream G450s:
- A 75-hour share purchased in 2021
- A 50-hour share purchased in 2022
Both contracts included the ability to “downgrade” to smaller jets when a lighter aircraft made more sense. But when we reviewed the fine print, we noticed something that many owners might miss:
The downgrade pricing ratios were significantly better on the newer contract.
Plainly speaking, the same flight on the same smaller jet cost less when booked through the 2022 share versus the 2021 one.
Making Sense (and Lots of Cents) of the Deals
Let’s say you’re trading down from the G450 to a Challenger 350. With the newer contract, you’d pay about 5% less than if you used the older one. Take the Legacy 450 or Praetor 500 and you’re saving around 8% just by booking through the right contract. Even on the Phenom 300, there’s still a 3% saving with the more recent share.
So what was the lesson here for our client?
- When downgrading to a smaller aircraft, use the newer 50-hour share
- When staying with the 450, stick with the older 75-hour share
Simple right? Yes, but only when you sweat the details and know how to do the math.
Real-World Impact
During our very first invoice review for this owner, we flagged an upcoming 4-hour trip set to be billed under the older 75-hour share. By simply reassigning the trip to the 50-hour share (a light jet downgrade), voila … $1,100 back in our client’s pocket.
Multiply that saving across the client’s typical 160 hours of flying per year—and his annual saving rocketed to $44,000. No small change for anybody, but the kind of optimization that gets overlooked in the details.
Why Many Owners Miss This
This may have been one client’s experience, but it’s replicated every day by those using multiple fractional contracts. We’re not exactly surprised and here’s why:
- Contract creep: different shares purchased at different times have different terms, and often the differences are so subtle that they go unnoticed.
- Set-and-forget habits: the people planning and booking owner trips, not being fractional contract experts, tend to default to one contract for simplicity and efficiency, but simplicity can lead to complacency, and that leaves money on the table.
- Complex math: downgrade ratios affect both cost of flights and hours remaining, making the true impact hard to see if you don’t know what you’re looking for.
The Bottom Line
Owning multiple fractional shares should give you more flexibility, not opportunities to overpay.
With the right analysis, you can:
- Stretch your annual hours
- Reduce your per-trip outlay
- Preserve premium cabin time for when it’s genuinely needed
Hiring a professional with expertise in fractional (and membership and jet card) agreements will almost always pay for itself, and especially when negotiating a new contract. It’s one thing to figure out which existing share to use, and quite another to even know what you can ask for to maximize your benefits.
Ready to see how much you could save?
If you need assistance untangling your share agreements or negotiating a new one, MyFlight Advisor is here to help so that you can focus on enjoying travel instead of overpaying for it.