Smart Investment Turns Chartering into a PC-12 Share
When considering private air travel options, chartering often seems like the most straightforward route.
However, if you're flying 50 hours or more per year, you might be surprised to learn that the financials lean heavily in favor of fractional ownership—especially when it comes to a versatile aircraft like the Pilatus PC-12.
Charter vs. Co-own: A Financial Breakdown
Let’s break down the costs using data based on annual hours flown, acquisition costs, management fees, and hourly rates:
50 hours annually is equal to:
An estimated annual travel distance of 12,500 Nautical Miles or 23,150 kilometers.
| Ownership Model | Charter | Co-Own (1/16th Share) |
|---|---|---|
| Aquisition Cost (one-time) | $0 | $362,500 |
| Monthly Management Fee | $0 | $108,000 |
| Hourly Rate | $250,000 | $75,000 |
| Depreciation | $0 | $10,875 |
| Total Annual Cost | $250,000 | $206,375 |
When you charter a PC-12 for 50 hours annually, you’re looking at an approximate cost of $250,000. In comparison, if you were to own a 1/16th share in the aircraft, your annual costs would include a one-time acquisition fee of $362,500 (or US$250,000 for a $4M valued aircraft) and annual operational expenses of $206,375, making co-ownership more affordable over time.
Keep in mind that the associated costs of a fractional interest in an aircraft may be treated as a deductible item for the purposes of corporate income tax and amortized over multiple years, where the use of the aircraft can be directly attributed to the purpose of earning income.
Why Co-Ownership Makes More Sense
While chartering allows for flexibility, owning a share in a PC-12 through AeroShares offers long-term financial benefits. Here’s why:
Cost-Efficiency: For an initial investment of $250,000, you own a 1/16th share in a PC-12. This is roughly the same cost as chartering the aircraft for 50 hours in a single year. However, unlike chartering, where costs are a one-time expense, ownership gives you a lasting asset. You can continue using the aircraft for many years with reduced annual costs.
Exclusive Access: As a fractional owner, you have access to the aircraft when you need it. No more competing for availability during peak travel seasons.
Flexibility in Usage: Beyond 50 hours, the cost structure becomes even more favorable as a fractional owner. You gain greater flexibility to fly as your business or personal needs demand, without paying the higher rates typical of charter services.
Long-Term Value: Co-ownership gives you an equity stake in the aircraft. Unlike charter payments, which don’t accumulate value, your fractional ownership retains its worth over time, potentially offering a resale opportunity down the road.
Conclusion: Invest in Your Future Travel
By committing to an annual private flying budget of $250,000 —whether through 50 hours of charter or a 1/16th ownership share in a PC-12—you can make your travel more efficient and cost-effective. The difference is that, with AeroShares, your investment buys you not just flight hours, but an asset you can continue to use for many years to come.
Take control of your travel schedule, reduce costs over the long term, and invest in an ownership model that aligns with your lifestyle.
AeroShares offers you the freedom and reliability of private aviation without the hassle of full ownership. Ready to explore the benefits of a fractional share in a PC-12? Contact us today!