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“Shaircraft Solutions designed and negotiated a fractional program that I didn’t even know was possible…My best investment was the one I made in Shaircraft Solutions.” More... Scott Verplank PGA Golfer |
“Keep An Eye on The Clock” — James Butler Tells Fractional Owners How to Get the Most Flight Time for Their DollarBethesda, Maryland • October 2008
Looking back on one of Shaircraft CEO, James Butler’s, earliest contributions to the “Inside Fractionals” column of Business Jet Traveler magazine, we are reminded of some oft overlooked factors fractional owners should consider when calculating how much flight time to purchase. Careful consideration is critical because, says Butler, “[I]f you buy too few [hours], you’ll later pay a premium for additional time and if you buy too many, you’ll pay substantial amounts for time you don’t use.” Among the most often overlooked factors to consider are:
With so many considerations, and so much money at stake, having an advisor negotiate these conditions up front is the only way to ensure that you’re making the best deal. For more information about how to maximize your fractional flight time, download the full text version of this article below. Business Jet Traveler: “Keep An Eye on The Clock”
“The Fundamentals of Fractional Ownership” — James Butler Demystifies This Private Air Travel ‘Staple’Bethesda, Maryland • October 2008
Butler emphasizes the key components of any fractional jet program:
Is fractional the best solution for you? Butler explains, “The general rule of thumb is that if you fly fewer than 50 hours per year, jet cards or charter may be better options; and if you fly more than 400 hours per year, purchasing a whole aircraft may be the way to go. If you’re in between, fractional may be the way to go, but the number of hours you fly is only the starting point of the analysis.” Butler goes on to explain other key considerations as well as the pros and cons of fractional jet ownership. He concludes with some cautionary advice, “Remember, in the private air travel business, a mistake can cost you hundreds of thousands, if not millions, of dollars.” To read the full discussion of fractional jet ownership, download the full text version of this article below. Business Jet Traveler: “The Fundamentals of Fractional Ownership”
“Looking Back…and Ahead” — James Butler Comments on the Past and the Future of Fractional Jet OwnershipBethesda, Maryland • October 2008
While the major players in the fractional industry have remained the same (NetJets, Flexjet, Flight Options and CitationShares), according to Butler, the biggest change has been that “as the fractionals have struggled to achieve profitability, the business model has continued to evolve — mostly to the detriment of shareowners.” Whereas cost certainty has been touted as a major benefit of fractional share ownership, Butler explains that, “[S]lowly but surely, the fractional providers have shifted the variable-cost risk to the owners.” Providers are tacking on exorbitant fuel surcharges, and some have instituted new surcharges for insurance and pilot salaries. At the same time, guaranteed share repurchase prices have been eliminated. As to the future, Butler says, “The key question is whether private flyers will continue to be willing to fund the capital cost of purchasing aircraft and assume the market risk associated with owning this asset, or will instead prefer to pay higher flying rates in order to leave that cost and risk with the providers.” For an in depth look at the fractional jet industry, download the full text version of this article below. Business Jet Traveler: “Looking Back…and Ahead”
“Yet Another Reason to Fly Privately” — James Butler Tells Commercial Travelers Why the Grass Really is Greener on the Other SideBethesda, Maryland • September 2008
Citing the cost and stress associated with delays, security hassles, cramped aircraft and poor service commercial carriers provide today, Butler points out that, “[A]irline passengers are more dissatisfied than at any time since 2001.” “Contrast this nightmare with flying on a private jet,” says Butler. “You fly where you want to fly, when you want to fly and with whom you want to fly. You fly direct (not through the airlines’ arbitrary hubs). No long layovers. No redeyes. No lost luggage. No intrusive searches.” As one Shaircraft client said, “Flying privately used to be a luxury, but today it’s a necessity.” To read more about the “horror show” that is commercial air travel today, and the benefits of flying on a private jet, download the full text version of this article below. Halogen Guides Jets: “Yet Another Reason to Fly Privately”
“Can a Fractional Jet Card Work for You?” — James Butler Profiles the Typical Fractional Jet Card TravelerBethesda, Maryland • September 2008
Butler describes the travel profile of a good candidate for a fractional jet card program:
To learn more about whether a fractional jet card is right for you, download the full text version of this article below. JustLuxé: “Can a Fractional Jet Card Work for You?”
James Butler Wins Top Prize for His “Inside Fractionals” ColumnBethesda, Maryland • August 2008
The ASBPE editorial contest, judged by business editors, designers, consultants and academicians, is considered the largest U.S. business press competition. This year's competition attracted more than 2,300 entries from a wide-range of business periodicals. “I am honored to receive this prestigious award,” said Butler. “As private air travel consultants, our business has its roots in the fractional ownership community. The ‘Inside Fractionals’ column is a natural extension of the work we do for private air travelers and gives me a great platform from which to share my expertise and insights with fractional jet owners.” “Survival Tips — What to Do if You’re Stranded” — James Butler Helps Private Air Travelers Handle the UnexpectedBethesda, Maryland • August 2008
Referring to heavy demand periods such as summer and holidays, Butler says, Butler arms you with some helpful survival tips:
For more insight into how best to handle service problems, download the full text version of this article below. Halogen Guides Jets: “Survival Tips — What to Do if You’re Stranded”
“When One Jet Isn’t Enough” — James Butler Offers Advice on Determining the Best Fractional InvestmentBethesda, Maryland • August 2008
Butler explains that, typically, analyzing your travel profile (i.e., where you fly, how long your trips are, how many passengers you carry, how much luggage you take, what aircraft you prefer and how much you’re willing to spend), leads to “a single, best solution.” However, in the case of one Shaircraft client whose travel patterns and requirements were rather complex, Butler explains that no single program could fully meet his needs, In such a case, Shaircraft leaves no stone unturned in finding and negotiating a combination of solutions that can accommodate the full breadth of your needs — whether that be a mix of programs from the same provider (the solution employed in this case), or perhaps a combination of programs from various providers. Either way, Shaircraft’s goal is the same: Deliver maximum flight time on the right aircraft at the lowest cost. For a more detailed look at this case study, download the full text version of this article below. Business Jet Traveler: “When One Jet Isn’t Enough”
“Four Must-Read Documents” — James Butler Explains What Every Fractional Owner Should KnowBethesda, Maryland • July 2008
Butler closes by saying, “It’s your contract documents, not the slick brochures or sales pitches, that govern your rights and obligations as a fractional owner. Read and negotiate them carefully or you may make a very costly mistake.” Inside Fractionals: “Four Must-Read Documents”
“Point A to Point ‘Whee!’” — James Butler Explains the Benefits of Private Air TravelBethesda, Maryland • July 2008
Butler describes the host of private air travel options — from on-demand charter to jet cards and fractional ownership. “For our clients, it’s all about convenience, flexibility and reliability. The world opens up when you fly privately.” Butler emphasizes some of the more practical benefits of flying privately, such as fewer security hassles and complete control over scheduling, noting that, “Private jets fly into more than 5,500 airports in the United States alone, while commercial airlines are limited to only 500 airports.” James Butler Returns as Analyst for Robb Report’s Annual “Best of the Best” IssueBethesda, Maryland • June 2008
Butler commented on what he thinks are the créme de la créme of fractional, jet-card and charter programs. Judging the providers on service, value, reliability and safety, Butler emphasized share repurchase value as a key consideration in evaluating fractional programs and, in general, encouraged private flyers to thoroughly research any potential investment. Shaircraft Negotiates Over 150 Changes to “Standard” NetJets ContractsBethesda, Maryland • June 2008
“I am very proud of our recent NetJets contract negotiations,” said Shaircraft CEO, James Butler. “As an attorney, I cannot emphasize enough how critically important it is to question even so-called “boilerplate” contract terms — particularly with fractional contracts that include many such seemingly innocuous provisions. A well-negotiated contract will maximize the value of your investment, protect your rights, and ultimately may save you hundreds of thousands, if not millions, of dollars.” Shaircraft achieves similar success with all the major providers including Flexjet, Flight Options, CitationShares and Avantair. “How to Find the Right Charter” — Shaircraft CEO, James Butler, Helps You Make the Best ChoiceBethesda, Maryland • May 2008
The question is how you identify a good operator from among the 1,000 charter companies flying in the United States. Here are a few of the key questions you should ask before you take off:
Butler counsels, “Our goal is to find our clients the best price for their flight with an experienced operator on a well maintained and appropriately equipped aircraft flown by top notch pilots, all with a spotless safety record. That should be your goal as well.” Click here for a full text version of this article. Shaircraft Solutions Sponsors Team for Redskins Radio “True Heroes” Charity Golf TournamentBethesda, Maryland • May 2008
“The Jet Set” — James Butler Gives Wells Fargo’s Elite Clientele Reasons to Consider Private Air TravelBethesda, Maryland • May 2008
Citing long time client and pro-golfer, Scott Verplank, Butler offers classic examples of the time-saving benefits of private air travel including fewer security hassles, virtually no delays and access to thousands more airports than commercial airlines. “When the hassle and inconvenience of traveling is eliminated, an athlete or business traveler is more relaxed and better able to perform,” he says. “By investing in himself, Scott Verplank gives himself the best chance to succeed.” In finding the best private aviation solution, Butler recommends that you start by answering the following questions as part of a thorough needs analysis:
Answers to these questions will help you identify the private air travel program that best suits your needs. Your Legacy: “The Jet Set”
Shaircraft Solutions Partners with Air Serv International to Facilitate Charitable Contributions of Flight Time on Private JetsBethesda, Maryland • April 2008
Shaircraft recently established the ShairGive Shaircraft’s CEO, James Butler, explains, “Shaircraft has long been committed to bringing together private flyers and seriously ill patients, wounded servicemen and their families and others who can’t fly commercially. Our partnership with Air Serv extends that commitment even further.” Air Serv CEO, Chris Johnson, adds, “Our partnership with Shaircraft Solutions’ ShairGive™ program will help Air Serv in our mission of saving lives.” For more information on how you can donate unused flight hours through our ShairGive™ program, contact James Butler. “Fractional Jet Primer: Navigating the Contracts” — James Butler Offers Halogen Guides’ Readers Food for Thought When Negotiating Fractional ContractsBethesda, Maryland • April 2008
“Your salesperson will do his best to convince you that everyone signs the same simple contract,” says Butler. “Don’t be fooled.” Butler lists the following “critically important documents,” which should be reviewed and well-negotiated prior to signing:
Butler concludes, “These documents, and not that beautiful brochure, will govern your rights and obligations. The contracts may look simple, but if you don’t read and negotiate them carefully, you may make a million dollar mistake.” Halogen Guides Jets: “Fractional Jet Primer: Navigating the Contracts”
“Fly Me to the Moon” — James Butler Tells DemoDirt.com Why Private Air Travel’s Popularity Continues to SoarBethesda, Maryland • April 2008
In addition to the obvious appeal of flying privately (access to more airports, flying when you want and the peace of mind of knowing who’s on the plane), Butler points out that new options offering lower price points also are attracting new customers. “We’re seeing very light jets becoming less expensive, and a rise in air taxi services, which is a hybrid of scheduled and private air travel. For instance, you can book a seat to Nantucket, or to Martha’s Vineyard. Also, there are jet cards and block charter programs in which you buy a certain number of flight hours. And, of course, there’s fractional ownership in which you actually own a share of a plane.” Butler notes that, “The industry is not settled, and there are now lots of ways to get into it. We’ll see who’s going to succeed.” But, he adds, “Once people fly privately, it is hard to go back to the Delta counter.” Click here for a full text version of this article. “Ferry Fees Could Be On the Way Out” — James Butler Shares Promising News for Fractional FlyersBethesda, Maryland • April 2008
Butler writes, “Ferry fees [charged to reposition an aircraft when flying outside of your service area] stick in the craw of fractional owners. Having purchased their share precisely to enjoy greater convenience flying to out-of-the-way places, owners are frustrated to find that they have to pay extra to get where they want to go.” Butler cites two providers, NetJets and FlexJet, who both recently have expanded their ferry-free service areas. He adds, “[C]itation Shares and Flight Options may soon have to follow suit or risk losing customers to their competitors. In the end, it may well be that for many owners, ferry fees will become a thing of the past.” Inside Fractionals: “Ferry Fees Could Be On the Way Out”
“How Celebrities Fly” — James Butler Explains the Lure of Private Air Travel to Halogen Guides JetsBethesda, Maryland • April 2008
As he tells Halogen Guides’ new Jets feature, it’s more than just extravagance. “Private jets fly into over 5,500 airports in the United States alone, while commercial airlines are limited to only 500 airports,” says Butler. “Add to this that private air travelers can fly on their schedule rather than the airlines’ and you have an extremely attractive service that’s reliable, convenient, safe and private.” For example, Butler notes, “A professional golfer like Scott Hoch gets to every tournament with his clubs, when he needs to be there, so that he can honor his commitments to the tournament, the fans and his sponsors. Scott can get home from a tournament the same day, spend time with his wife and kids, and when he returns to the tour, he’s relaxed and ready to play. This is part of his support system, like his coach, his caddy and his equipment.” The bottom line? “The world opens up when you fly privately,” says Butler. Click here for a full text version of this article. “Contract Provisions You Shouldn’t Ignore” — James Butler Cautions Fractional Investors to be Wary of “Boilerplate” Contract TermsBethesda, Maryland • March 2008
Inside Fractionals: “Contract Provisions You Shouldn’t Ignore”
“A Fractional Life” — Fractional Ownership Expert, James Butler, Offers Advice to Potential InvestorsBethesda, Maryland • February 2008
As he does for all of his clients, Butler advises readers to do an assessment of their needs, which includes where and when you fly, how often, how much luggage you carry and so on. While there are exceptions to the rule, Butler notes that, typically, fractional is best for people who fly between 50 and 200 hours per year. Highlighting the benefits of private air travel, Butler explains, “Private jets are like time machines…They make time, you get there with no delays in airports waiting for connections, going through security, packing plastic bottles, etc. It often shaves a day or two of travel.” Valley Magazine: “A Fractional Life”
“The Ideal Fractional Program”—James Butler Reveals His “Wish List” of Changes for the Fractional IndustryBethesda, Maryland • January 2008
“Considering that the fractional-aircraft field was borne of a new business model and has been around for more than 20 years, it is perhaps surprising that the basic structure remains fundamentally unchanged…” Butler writes. “[I]t’s worth pondering how one might design a better fractional model.” Butler highlights three industry-wide changes he would make:
Butler counsels that, “Without these changes, fractional programs may find it difficult to survive the onslaught of jet-card and other non-ownership programs that many are turning to, in large part because they don’t believe they’re getting a fair shake from the fractionals.” Inside Fractionals: “The Ideal Fractional Program”
“Year-End Private Jet Deals, Only Fools Rush In”—James Butler Warns Helium Report Readers Against Rushing Into Year-End DealsBethesda, Maryland • December 2007
Butler cautions against rushing into year-end deals that tout significant savings and other incentives. He writes, “[D]on’t necessarily hold off on making a deal but rather do your homework…” Butler’s recommendations include taking the time to thoroughly understand your needs and budget, identifying the best program for you, shopping around, understanding the cost and, of course, reading the fine print. In closing, Butler notes, “The cost of making the wrong deal will far outweigh any year-end benefits and incentives.” Download the full text version of this article below. Halogen Guides Jets: “Year-End Private Jet Deals, Only Fools Rush In”
“Beware of Buyback Provisions”—James Butler Explains the Traps Facing Owners When Reselling Shares to Their ProviderÂBethesda, Maryland • October 2007
“[P]roviders generally try to buy back shares at a discount from fair market value,” writes Butler, an expert who’s represented many owners in fractional repurchase disputes. “[Y]ou’re at a distinct disadvantage. Comparable sales information is hard for the layman to come by, and the information offered by the provider, which is difficult for the novice to decipher, may be misleading.” Butler offers advice as to how to structure your contract at the outset to make sure that you'll get a fair shake at the end. Inside Fractionals: “Beware of Buyback Provisions”
“Taking Your Jet Travel Private”—Shaircraft’s ShairRide
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Shaircraft CEO, James Butler, recently interviewed by Yahoo! News and the LA Times, offers insight into how recent terror threats have sparked an increased interest in private air travel—particularly for business travelers. Butler notes a big increase in inquiries and echoes his comments to CNN immediately following 9/11, "The peace of mind we get from this service is that we know who is on the plane, we know what is in the luggage, we know who is flying the plane." The Yahoo! News article, "Beyond First Class," also notes the expense of private air travel and asks Butler if the emergence of very light jets could make private air travel accessible to more business travelers. Butler comments, "[Very light jets] may lower hourly costs below a thousand dollars, but they are just coming in to the market.''
“Buying
Your Share from Another Owner” – What to Look Out For |
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| Bethesda, Maryland • September 2006 |
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In his June 2006 “Inside Fractionals” column for Business Jet Traveler, Shaircraft CEO, James Butler, explains the benefits and the risks of buying fractional shares from an owner rather than from a provider. While some providers restrict owners from selling their own shares, Butler indicates, “[U]nder many existing fractional contracts, the owner is relatively free to sell his share to a third party with reasonable restrictions.” In addition to lower fees, Butler cites other advantages for the buyer, “The contract may include short-leg waivers, peak-travel and upgrade guarantees, ferry-fee waivers and simultaneous-use rights, some or all of which may no longer be available under the provider’s program.”
Noting potential complications, Butler cautions, “[I]t’s important that you confirm the contract’s business and legal terms. Understand that, for good or ill, you’ll be stuck with them; you won’t be able to renegotiate with the provider.”
Inside Fractionals: "Buying Your Share from
Another Owner "
Download
in PDF format (190K)
“Where is
the Fractional Industry Headed?” – James Butler Examines the Industry's Uncertain
Future
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| Bethesda, Maryland • May 2006 |
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In his May 2006 “Inside Fractionals” column, Shaircraft CEO, James Butler, takes stock of how the fractional industry has evolved and explains how its business model has fundamentally changed.
Butler recalls that early on, when the providers bore most of the variable cost risk, owners enjoyed “relative cost certainty and guaranteed liquidity.” Increases in variable costs were capped, fuel costs were stable and many providers guaranteed a minimum price for buying back shares. “Thus, it was fairly easy to determine what flying fractionally would cost.”
However, as Butler explains, increases in maintenance, pilot, insurance and other costs, as well as a down market in preowned aircraft values made it difficult for providers to turn a profit, while still guaranteeing relative cost certainty to owners. This reality prompted providers slowly but surely to shift the variable cost risk to the owners, by instituting various operating cost surcharges and by eliminating guaranteed resale valuations.
Butler notes, however, that consumers have reacted to this cost shifting. “[T]he rising popularity of jet cards reflects the willingness of owners to pay a premium to shift the variable-cost risk back to providers,” says Butler. He predicts that “[T]his tango of shifting costs between owners and providers seems likely to continue,” and advises fractional owners to “stay on their toes.”
Inside Fractionals: "Where is the Fractional
Industry Headed?"
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in PDF format (190K)
“Jet
Cards May Be Overstacking the Deck” – James Butler Addresses Growing Concern Over
the Impact of Jet Cards on Fractional Owners
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| Bethesda, Maryland • February 2006 |
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In his February 2006 “Inside Fractionals” contribution, Shaircraft CEO, James Butler, investigates the growing concerns of owners who fear that increasingly popular jet card programs are hurting service and devaluing their aircraft.
Because they provide additional revenue, providers love jet card programs, which typically provide 25 hours of flight time without a long term ownership commitment. But how are these programs affecting the fractional owner? Butler cites complaints such as strained capacity, increased charter and other fleet management problems, service delays, added wear and tear on the aircraft and more. As one NetJets owner confided, “At times service has gone to hell… They’ve taken all of the joy out of fractional ownership." A Flight Options owner expressed concern that hours flown to service jet card holders are decreasing the value of his aircraft.
The providers’ response? Former Flight Options executive, Cameron Gowans, insists that aircraft are limited to 800 flight hours per year and that hours sold through its jet card program come from unsold capacity. Butler points out, however, that it is commonly known that fractional aircraft are flown as much as 1,200 hours per year. Sanjay Saihgal, of Flexjet, admits that card programs can have a negative effect on fractional owners, "We learned pretty quickly…that you cannot have too big a share of your total fleet sold out to fractional cards."
Butler’s take: “Some providers seem to be managing the growth in their card programs carefully. However, faced with the allure of additional revenues, it seems likely that providers will continue to grow these programs to the limit of what fractional owners will tolerate.”
Inside Fractionals: "Jet Cards May Be Overstacking
the Deck"
Download
in PDF format (300K)
“Should
You Sign on with a Small
Provider?” – James Butler Explains
the Hard Questions You Should
Ask Before Buying a Share
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| Bethesda, Maryland • December 2005 |
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In his December 2005 “Inside Fractionals” column for Business Jet Traveler, Shaircraft CEO, James Butler, reveals how smaller fractional programs stack up to the larger, “Big Four” programs and reveals the key issues to investigate before buying a share.
Butler explains, “Smaller fractional programs may be a good option for you if you tend to take short trips and know well in advance when you’ll need to fly, as these providers typically use small jets and require more flexibility in flight scheduling than the Big Four.” He adds that these programs may be more cost-effective than the larger ones, but only if the ability to fly on short notice, access to more airports and travel to and within Europe are not must-haves. “Smaller programs generally lack the longer track records of the Big Four," Butler explains, "so it’s even more important that you do your due diligence before you buy.”
Butler emphasizes the key issues to
investigate before signing up with a smaller
provider: Financial Strength (Do you understand
the company’s
financial resources and backing?), Management
Team (Who makes up the management team and what is their experience
in the aviation business?), Growth Strategy (Rapid growth may impact
service.) and Service Restrictions (What are the limitations and can
you live with them?).
Inside Fractionals: "Should You Sign on with a Small
Provider?"
Download
in PDF format (300K)
“Picking
the Best Payback” – James Butler Highlights Alternatives to
Extra Flight Time Concessions When Service Doesn't Measure
Up
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| Bethesda, Maryland • October 2005 |
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In his October 2005 contribution to Business Jet Traveler's “Inside Fractionals” column, Shaircraft CEO, James Butler, explains that, when fractional service falls short, as in the case of an extended flight delay, the standard concession offered is additional flight time. Unknowingly, the majority of travelers believe simply accept this offer. However, as Butler explains, “In many cases…additional flight time offers little or no benefit. That’s because owners frequently don’t use all of their flight hours.”
Additionally, Butler reminds owners, “You have to pay the hourly rate for that ‘free’ flight time when you use it, as well as fuel surcharges, excise taxes and more. So it’s really not free. There may be other concessions that can save you money or provide you with greater benefit.” Some of these alternatives include: Short-leg waivers, ferry-fee wavers, guaranteed peak day travel, guaranteed upgrades and simultaneous use.
“Consider
benefits that will truly add to the value and enjoyment of your investment,” Butler
suggests. “More flight time may be the way to go, but as you
can see, several other possibilities deserve consideration.”
Inside Fractionals: "Picking the Best Payback"
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in PDF format (108K)
"Are
We Getting Hosed by Fuel
Surcharges?" – James Butler Exposes
One of the Fractional Industry's Best Kept Secrets
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| Bethesda, Maryland • August 2005 |
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In his August 2005 "Inside Fractionals" contribution
to Business Jet Traveler, Shaircraft CEO, James Butler, reveals how
fractional providers pass on the pinch of skyrocketing fuel costs to fractional
owners. The article asks: "Are we getting hosed by fuel surcharges?"
Such surcharges, previously considered a minor annoyance by owners, "now add
significantly to the price of fractional flights—as much as $1,100 per
hour." Noting calls from several agitated owners, Butler related comments like, "I
know the price of fuel has gone up, but these surcharges are outrageous. Can
they charge me like this?" And: "How do they come up with these numbers?"
Butler explains that, while fuel costs certainly have risen, providers may be
doing more than just recouping these increased costs. Factors that determine
these surcharges—"base rate" cost of fuel (determined at the beginning
of the contract), "retail cost" currently paid for fuel, and "burn rate" at which
the aircraft uses fuel, may be calculated by the provider so as to recoup the
increased cost and make a profit. Butler stresses that "what's needed
is transparency. The providers should clearly spell out how they calculate and
charge for fuel. If a profit or recoupment of unrelated costs is built into this
aspect of the program, they should disclose it."
Inside Fractionals: "Are We Getting Hosed by
Fuel Surcharges?"
Download
in PDF format (35K)
James Butler Tells Fractional Owners Why "Sometimes Fair Market Value Isn't So Fair"
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| Bethesda, Maryland • April 2005 |
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In his debut contribution to Business
Jet Traveler's "Inside Fractionals" column,
Shaircraft CEO, James Butler,
offers advice to owners challenging
providers' low
share valuations.
Many
fractional owners wonder if their shares have gone
down in value as the providers claim, in some cases
as much as 60%. Butler emphasizes that owners have
the right to contest these valuations through the
appraisal process provided in their Purchase Agreements.
Is it worth it? "The larger the share and the bigger the aircraft, the more
likely it is that it will be worth your while to contest the provider's valuation," Butler
advises. "On more than one occasion, we've told owners that the potential rewards
may not be worth the cost. In other cases, we've fought for and obtained significantly
higher valuations by making the most of the owner's contractual rights and by
using appraisers who understand all the aspects that make fractional aircraft
unique."
Owners can put themselves in the best position by anticipating this contest and
negotiating changes in the standard boilerplate Purchase Agreement with regard
to how the process will work and, most importantly, what is meant by "fair market
value."
Inside Fractionals: "Sometimes, 'Fair Market Value' Isn't
So Fair"
Download
in PDF format (35K)
James
Butler Asked by Business Jet Traveler Magazine to Take
Over “Inside Fractionals”
Column |
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| Bethesda, Maryland • March 1, 2005 |
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The editors of Business Jet Traveler magazine
have asked Shaircraft CEO, James Butler, to contribute editorials for
the periodical’s “Inside Fractionals” column.
This column serves an educational resource for fractional owners—addressing
industry trends and shedding light on key issues facing owners and providers.
“My intention is to use this forum to further Shaircraft’s goal of
informing, and thereby empowering, fractional owners,” says Butler. “We
keep our finger on the pulse of the industry and I am pleased to contribute my
expertise—both from a legal and an aviation perspective.”
Editor-in-Chief of Business Jet Traveler, Randall Padfield, says of
the news, “Our editorial staff is always on the lookout for people who
know the industry well and can provide unbiased opinions about it. For several
years now, James Butler has been one of the experts we regularly contact for
comment. When we needed a new writer for the ‘Inside Fractionals’ column,
we immediately thought to ask James if he’d be interested. He agreed and
we’re very happy to now count him as one of BJT’s “Contributing
Industry Experts.”
Butler’s first contribution, which appears in the April/May 2005 issue,
offers advice to owners in challenging low share valuations offered by providers
in share repurchases. Future columns are expected to address the mysteries surrounding
fuel surcharges and the effect of new FAA regulations on fractional owners and
providers.
James
Butler Describes Today’s Fractional Owner
to Aviation International
News
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| “Ownership Alternatives: Fractionals Adapt to an Ever-Changing Market” • July 2004 |
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James
Butler Makes Sense of a Transitioning |
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| “Charter Industry Continues to Evolve” • July 2004 |
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Chartering
a Plane for Vacation? Shaircraft CEO |
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| “The Private Jet Set” • June 2004 |
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In a special anniversary edition of Business Jet Traveler, Shaircraft CEO, James Butler, uses his “Inside Fractionals” column to reflect on where the fractional jet business has been and, more importantly, where it’s going.
In his recent article for Halogen Jets, Shaircraft CEO, James Butler, describes the common frustrations of commercial travel and offers a look at the private alternative.
In his debut contribution to the online luxury portal, JustLuxé, Shaircraft CEO, James Butler, focuses on popular fractional jet card programs, encouraging you to look beyond the flashy marketing to make certain they’re right for you.
As recently reported in the Washington Examiner, Shaircraft CEO, James Butler, was awarded the top prize in the “Regular Column, Contributed” category at the 30th annual awards competition of the American Society of Business Publication Editors (ASBPE). This award recognizes his “Inside Fractionals” column for Business Jet Traveler magazine — an expert review of the fractional jet ownership industry.
Speaking to readers of his Business Jet Traveler column, Shaircraft CEO, James Butler, explains why some travelers require a hybrid approach to meeting their private air travel needs.
For a special “Luxury Edition” of Inside Magazine, Shaircraft CEO, James Butler, explains why, for those who can afford it, private is the best way to fly. “Wealthy clients have a range of options,” says Butler, who analyzes clients’ budgets and travel habits to find the options that best suit their needs. 
Shaircraft CEO, James Butler, once again lent his expertise to the “Personal Aircraft” section of Robb Report’s 20th annual “Best of the Best” issue — a special feature focusing on top performers in private aviation.
Fractional ownership specialists, Shaircraft Solutions, recently completed negotiations on two NetJets contracts — one for a share of a Citation Sovereign, the other for a share of a Citation X. In each case, Shaircraft was successful in negotiating over 150 changes to the standard contracts provided by NetJets that added significant enhancements for our clients.
Shaircraft Solutions is sponsoring a team in the 1st Annual Redskins Radio “True Heroes” Charity Golf Tournament, that will be held on June 17th at the Landsdowne Resort in Leesburg, Virginia. Proceeds of the tournament will benefit “Operation Second Chance” — a non-profit organization whose mission is to support injured soldiers and their families in their transition back to civilian life. Shaircraft CEO, James Butler, explained, “Through our ShairGive
program, we’ve become involved with many organizations that are helping our veterans. This tournament gives us a chance to extend our commitment to helping America's true heroes.”
In a feature article for Your Legacy — a periodical exclusively distributed to private banking clients of Wells Fargo Bank — Shaircraft CEO, James Butler, underscores the value of flying privately. 
Through its ShairGive
Shaircraft CEO, James Butler, recently lent his expertise to DemoDirt.com’s “Affluent” section, explaining that private air travel is becoming “less of a luxury and more of a necessity.”
Valley, LA’s premier luxury magazine, recently asked Shaircraft CEO, James Butler, for his advice on investing in the fractional jet market. Having “gotten many fractional owners out of hot water and saved potential investors from getting in over their heads,” Butler encourages potential fractional investors to get expert help before taking the plunge. “Buyers need a specialist to make sure they get the deal that’s right for them,” he says. “Especially first-time buyers.”
In his debut contribution as an analyst for Helium Report’s “Private Jets” guide, Shaircraft CEO, James Butler, sheds light on end of the year fractional and jet-card offers and identifies key considerations for those contemplating such an investment.
Shaircraft CEO and trusted private air travel authority, James Butler, recently spoke with the Wall Street Journal about the
growing interest in affordable private air travel options. “We find more people who are cost-sensitive and don't want to make a big capital investment in a plane, but want to dip their toes in the water,” he says.
“Once you do it, it's hard to go back to the US Airways counter, to long security lines, to lost luggage.”
Shaircraft CEO, James Butler, recently was interviewed by Bloomberg.com on the FAA’s newly proposed rules that would ease interior design restrictions for private aircraft, resulting in more luxury and style options, especially in larger jets.
Recently interviewed by the Boston Business Journal, Shaircraft CEO, James Butler, comments on the expanding use of private air travel by corporations.
A recent article in the DC Examiner highlights the money-saving benefits of Shaircraft’s new ShairRide
Shaircraft
CEO, James Butler, contributed his expertise to the Personal
Aircraft section of Robb Report's annual “Best
of the Best” issue.
Shaircraft
CEO, James Butler, recently was interviewed by globeandmail.com
about the growing popularity of charitable travel programs. 
In a special column written for the Professional Business & Financial Network (PBFN)-a
Web-based organization that serves professional athletes—Shaircraft CEO, James Butler,
answers the question, "Which [Private Air Travel] Investment is Right for You?"
Quoted
by NBAA Convention News, Shaircraft CEO, James Butler, justifies fractional owners'
concerns over the effects of jet-card programs on fractional service. He explains, "Common
sense tells you that accommodating 32 jet-card members per aircraft is more difficult
than servicing eight owners."
Interviewed
for a special feature on fractional ownership, James Butler helps Aviation International
News make sense of the fractional industry’s struggle to balance service, value
and profitability. In line with his owner-centric focus, Butler explains, “Owners
are willing to pay a fair price for service, but they don’t like the lack of cost
transparency – the hidden costs. They want providers to be more straightforward and
they want to be treated like owners, not passengers.” He adds, “Ultimately,
the owners want the providers to be sustainable.”