|
|
© 2005 Integra Air
|
Fractional OwnershipFractional Ownership of Business AircraftA new option for business aircraft is fractional ownership, in which companies or individuals own a fraction of an aircraft and receive a turnkey flight department - management and pilot services associated with aircraft operation. Fractional ownership allows companies that have never before used business aircraft to experience many of the advantages of business aviation quickly and without the regulatory and operational considerations associated with traditional flight departments. It also allows existing flight departments to supplement their current aircraft as required.Fractional ownership was pioneered in 1986 in the US, and has quickly grown into a major part of the aerospace industry. For example, NetJets, the industry leader, has ordered 500 new aircraft in the past four years - 1/3 of the total business jets sold worldwide. In 1986, there were four owners of fractionally held aircraft by mid 1999 there were 1600. From January 1 through September 15 of 1999, the number of fractional owners increased 43% above 1998's level. The fractional ownership means that the investor has an undivided ownership (interest) in the aircraft. Therefore, if there were 8 investors, they would reflect 1/8th of the aircraft as an asset in their financial records. On the reporting period basis, the investor would receive a schedule indicating total revenue and total operating expenses and each investor would pick up their share of the net result. Interest and management fee expenses would be deducted at the investor level, and each investor would make their own decision of how much depreciation (CCA) they would claim based upon their own personal situation. Flexibility and VersatilityFor many businesses the thought of owning and operating their own corporate aircraft just seems to be out of reach when you consider the cost, the infrastructure, and the management requirements. The fractional ownership program at Integra Air gives you a guaranteed turnkey flight department - flexible, on-demand travel and hassle-free. All you need to worry about is to schedule the aircraft to meet your needs. The rest is up to us. Your aircraft and professionally qualified airline rated pilots are available when you need them. In the air, and on the ground, we cater to your every need - including, at your request, arranging ground transportation, in-flight catering and hotel accommodations.Allow Integra Air to be your company's flight department that coordinates flight crews, maintenance, hangars, insurance, logistics and other details involved with the ownership of an aircraft. With fractional ownership, you purchase an interest or a share of a corporate aircraft which comes fully operational and managed by Integra Air's experienced crews that currently operate a scheduled airline and charter service from Lethbridge, Alberta. Your aircraft and flight crews will be available 24 hours a day, 365 days a year. By owning a share of an aircraft, you can specifically meet your transportation needs without having to pay any extra. The minimum interest share is 1/8, which corresponds to 100 occupied flight hours per year. Additional interests above the 1/8 share can be purchased in 1/8 increment to increase the flight hours and investment. Unlike charter operations, you only pay for the hours that you occupy the aircraft and you do not pay for holding charges. This will simply make it a more affordable option, but it only gets better. As a fractional owner, you enjoy all applicable tax benefits associated with asset ownership of an undivided interest. You can sell your interest at any time or you have the option to sell a portion of your share to a fellow company or individual. Unused hours can also be carried forward to the next year so they will never be lost. THE CONTRACTParticipation in the fractional ownership program requires the execution of two agreements, the Purchase Agreement and the Operational Lease. These agreements provide for the purchase of a fractional interest in the aircraft, the lease of that interest of Integra Air and the day to day management of the aircraft by Integra Air. Our program affords you a level of aircraft availability and versatility that will lift your expectations.
|