Share transfers

Transferring a fractional jet share

A fractional jet share can be transferred with the program's consent: sold to an outside buyer, moved into the owner's own company or trust, passed to a family member or business partner, or settled by an estate.

The receiving party changes which approvals are required, whether the right of first refusal applies, what the transfer costs and how long the management fee runs.

We advise only the owner, review the agreement before action is taken and compare the timing and cost of the available transfer routes.

Discuss your share transfer

What the program's consent requires

Program consent and the incoming owner's obligations

Under the exchange agreement, every owner leases their aircraft to every other owner. Each appoints the same program manager under the management agreement. A new owner becomes a party to these agreements, which is why every transfer needs the program's consent.

Program agreements condition consent on the incoming owner meeting the program's standards for identity, creditworthiness and entity structure. In the agreements we have read, consent also requires the owner's account to be current. The incoming owner signs the management and exchange agreements and the operational-control acknowledgment every fractional owner gives.

The program may condition consent on amending the remaining agreements, so the incoming owner can inherit terms that differ from the seller's. In a sale, most agreements also give the program a right of first refusal, which lets it buy the interest on the third party's terms within the agreement's decision window. The program may therefore buy the share in place of the buyer who made the offer.

Who receives the share

Buyers, holding entities, family members and estates

A sale to an unrelated buyer requires program approval and may trigger first refusal; the sale economics account for transfer charges, continuing fees and the proceeds under each route.

A transfer to the owner's own company or trust changes how the interest is held. It still needs consent, may carry a transfer fee and may be treated as a sale for first-refusal purposes. Choosing the holding entity before purchase usually costs less, because changing it after signature can require consent, a fee and a registry filing.

The incoming holder must meet the FAA registration and ownership requirements, with counsel confirming the entity or trust structure before program consent is requested.

A transfer within a family or to a business partner also requires the new owner to qualify. A transfer fee applies where charged, and the right of first refusal applies if the agreement treats the move as a sale. Tax questions on each route belong with the owner's tax advisor.

On the owner's death, the interest becomes an asset of the estate and does not pass automatically within the program. The fee obligation continues, and a transfer to an heir still needs the program's consent. The estate’s authorized decision-maker chooses between the available routes, with counsel advising on admission and exit rights.

The owner's position in the term

Remaining hours, renewal and holding periods

Remaining hours and transferable benefits affect the amount a buyer receives, with their economic effect explained in selling a fractional share.

The renewal election and notice deadline can affect the commitment the incoming owner receives if a transfer crosses term end.

A minimum holding period may restrict repurchase or transfer; the restrictions and any exceptions depend on the agreement. NetJets states a 36-month minimum commitment for its Share. The owner's executed agreement governs the applicable holding period.

A partial transfer is possible only where the agreement allows it, and the program is not obliged to permit a split. Whether a smaller interest qualifies is for the program and the owner's counsel to confirm.

Approval and closing

Program approval, legal transfer and FAA registration

Program approval and the legal conveyance are separate parts of a transfer. The program considers the incoming owner’s identity, credit and entity structure under the agreement; a sale may also trigger a right-of-first-refusal window.

The incoming owner enters the required program agreements. A financed share adds lender consent, payoff and lien-release conditions before the buyer can take clear title.

Counsel handles the bill of sale and FAA registration filings. Management fees can continue until the effective transfer date, so approval and closing delays affect the net result.

How we evaluate the transfer

Transfer, repurchase and a smaller share can lead to different outcomes

We compare the permitted transfer with repurchase and, where flying has fallen rather than stopped, a smaller share. Remaining hours, continuing fees and the terms the incoming owner would receive can change the preferred route.

For an estate, continuing obligations and the heir’s ability to enter the program make timing consequential. We help organize the program records needed by the executor and counsel.

We coordinate the commercial information with the owner’s counsel and tax advisor. Counsel determines registration eligibility and handles the legal transfer. We do not hold funds, act as a party to the transaction or take operator commissions or referral fees.

We compare the timing, costs and program requirements of the available transfer routes. Speak with us about the proposed change; legal and tax advice remains with your own advisors.

Discuss your share transfer

Common questions

Frequently asked questions

Yes, with the program's consent, and each move between companies in the same corporate group is a transfer. The receiving company must be eligible to register the interest and enter the program agreements. The agreement may treat the move as a sale for first-refusal purposes and charge a transfer fee.

Only where the agreement allows it. The program is not obliged to permit a split, and whether a smaller interest qualifies is for the program and the owner's counsel to confirm.

The interest is an asset of the estate and does not pass automatically to anyone within the program. The estate’s authorized decision-maker chooses between the available routes, with counsel advising on an heir’s admission and the estate’s exit rights. Management fees continue in the meantime.