Jet Expert is a column from experts in the field like Craig Bowers. Craig is the President of JetForward Aviation, an aviation portfolio management firm. He has a BS in Mechanical Engineering from Georgia Tech, and an MS Degree in Aviation Systems. A former Marine attack pilot and instructor test pilot, he is a rated ATP with over 3,000 hours in 35 different aircraft and extensive experience in Part 91, 121 and 135 flight operations. You may email him at craig@jetforwardaviation.com.

There was a time when comparing the “all in” hourly rates of a couple fractional ownership private jet programs was as simple as 1-2-3 – determine the share price, monthly management fee and occupied hourly rate and you pretty much had it. Behind the curtain, however, it was far more complicated than that as providers had to deal with things like distant ferry charges, fuel costs and residual value issues. At the same time, private jet shareowners started screaming for more transparency in the pricing equation – in essence wanting to be treated more like owners than just another retail customer.

Many fractional ownership providers have adopted an innovative approach to the price equation – aimed both at shareowner concerns as well as hoping to differentiate themselves in an increasingly competitive marketplace.

Flight Options’ “Fractional First” program, launched earlier this year, offers a number of key features including the elimination of taxi time deductions, distance-based pricing and a more transparent fuel surcharge policy. Most notably, however, is the Flexible Use Option, which allows owners to fly from 80-120% of their share hours in any one year and pay management fees on only those hours flown.

At Flexjet, flexibility is spelled “Versatility Plus” – a new fractional ownership program that provides owners a “pool” with which to sell unused flight time or purchase additional hours should the need arise. While there is a small cost for the service (either on the buy or sell), the fractional program is a better option than allowing unused hours to expire or having to borrow from future years.

CitationShares Citelines fractional ownership program offers a more radical pricing approach, eliminating monthly management fees and occupied hour charges altogether. Instead, owners pay all operating expenses into one annual payment, regardless of where you fly. (The fee may be broken out in 12 monthly payments as well.) An even bigger innovation is the offering of four different packages, based on the number of travel days per year. Thus, a person who does not need access on 365 days per year can elect the 320, 330 or 350 Day option, and save thousands of dollars by avoiding peak periods.

So far, market leader NetJets has held the line on pricing policy in terms of share price, management fees and hourly rates, preferring to keep it simple. However, they are not immune to market forces as is evidenced by their recent announcement eliminating ferry fees to many parts of the world. (Read more about that here.)

And just to show that size doesn’t trump all, fractional share provider XOJet has a completely different spin – eliminating fixed fees altogether. However, with the current offering of only a half- or full-share in the super-fast Cessna Citation X, this program has a unique target audience.

It’s all good, right? In the long run, certainly. Nothing like a little competition to get people thinking of ways to build a better mousetrap. However, in the short run, it means you are going to need to spend some time doing your homework. First, you need to make sure you have considered the various program options and what they mean to you. Secondly, make sure any cost analysis accounts for the programs under considerations. Flexible Use vs. Traditional Pricing, Versatility Plus hours required, and Citelines’ annual fuel index are all elements that require careful analysis.

The advantages of fractional jet ownership make this the ideal format for many travelers; the Helium Report Decision Guide to Private Jet Travel provides an excellent method to determine if it’s the right fit for you. However, with the recent pricing schemes being introduced, it is going to take a little more homework to determine a level field for comparison.