Owner billing
The fractional jet owner's monthly statement: what each line contains
A fractional jet owner's monthly statement combines two kinds of charge. The fixed charges are chiefly the management fee and any financing. The flight charges are the occupied hourly fee on billed time, a fuel adjustment and federal taxes, plus the premiums, positioning and ancillary charges the agreement allows.
The amount due can change with scheduled management fee increases, billed flight time and fuel adjustments. Charges must follow the applicable agreement, rate schedule and tax requirements.
We review statements against the agreement, rate schedule and flight record, and help the owner raise supported discrepancies with the operator.
Invoice components
Fixed fees and flight charges
Fixed charges continue whether the owner flies or not. Flight charges depend on the contracted rates and the agreement's terms for each trip. Those terms vary by program, so charges with the same name may be calculated differently.
The monthly management fee is usually the largest fixed line. The management agreement sets a fixed monthly amount per interest and a schedule of increases, commonly annual and tied to a percentage or index. The fee pays for crew, maintenance, hangarage, insurance, scheduling and the program's overhead. It is billed whether the owner flies or not, so each scheduled increase raises the cost of every month that follows.
The occupied hourly fee is the contracted rate for each hour the aircraft flies with the owner or the owner's passengers aboard. The rate applies to billed time, which may exceed actual flight time. Under most agreements billed time adds a fixed taxi allowance to each leg, set in the agreement rather than measured on the day, and Flexjet states an allowance of 2/10 of an hour. The taxi allowance applies to every leg, so its proportional effect is greatest on short flights. Agreements may also set a minimum billed time per flight or per day and round to a stated increment.
The fuel component is a variable adjustment to the hourly fee. It can track a published fuel index and is recalculated on the agreement’s schedule, such as monthly or quarterly, so it can change between statements. Some programs bill it as a separate line and some fold it into the hourly rate. A well-itemized statement shows the base rate and the fuel adjustment separately.
For illustration, two one-hour flights with a 0.2-hour taxi allowance on each leg produce 2.4 billed hours. At a hypothetical occupied rate of $3,000 an hour, that flight-charge line would be $7,200. This is not a Flexjet rate or a complete monthly invoice. Management fees, fuel, taxes and other applicable charges are additional; any minimums or rounding could change billed time.
Taxes and adjustments
Taxes and additional flight charges
A qualifying fractional program flight carries the federal fuel surtax in place of air transportation taxes. Taxable domestic charter, including applicable card flights, generally carries the percentage and domestic segment taxes, subject to exemptions. International treatment depends on the itinerary.
Peak-day and short-notice premiums are surcharges the agreement sets as a percentage of the hourly fee or a fixed amount. They apply to flights departing on the peak days the program names each year, or booked inside the notice window. An itemized statement may identify the peak date or booking notice that triggered the charge.
Positioning is the flight that brings the aircraft to the owner. Many programs do not bill it inside their primary service area, the region the agreement names for standard service, and do bill it outside, at a stated rate or as a share of the ferry time.
Interchange is the use of a different aircraft type from the one covered by the owner's share. It appears as hours drawn from the allocation at the exchange agreement's ratio, sometimes with a rate. Ancillary charges can cover catering above the standard provision, de-icing, international handling and permits, program-arranged ground transport and metered in-flight connectivity. The fee schedule or the underlying pass-through expense determines the amount.
Billing review
Discrepancies and recurring billing patterns
A review checks billed time, rates and the conditions for additional charges against the contract and flight record. It can also reveal a pattern across several statements that a single monthly total would not show.
New charges, fuel or interchange adjustments and outstanding credits can change the amount owed. An unfamiliar charge is not proof of an error, and the agreement’s dispute window may limit the time available to resolve it.
We explain supported discrepancies and help the owner raise them with the provider. Unresolved legal disputes belong with the owner’s counsel; tax questions stay with the tax advisor.
This review forms part of account management. It assesses charges against the agreement and is not a financial audit.
We review program charges against the agreement and flight record, and help owners raise supported discrepancies with the provider. Speak with us about the billing questions in your current program.
Discuss your program chargesCommon questions
Frequently asked questions
Statement lines are described as we read them in fractional program agreements and are stated as our own view; the owner's executed agreement controls. Flexjet's taxi allowance is from its fractional ownership page, read September 29, 2026 and rechecked October 14, 2026. The flight-charge illustration uses hypothetical flight lengths and a hypothetical rate, with arithmetic checked October 14, 2026. Federal tax rates (the fuel surtax of 14.1 cents a gallon under 26 U.S.C. 4043; the 7.5 percent tax on transporting persons and the domestic segment tax of $5.30 a segment for 2026 under 26 U.S.C. 4261) are from the IRS Instructions for Form 720, revised June 2026, verified 8 September 2026.
Sources: IRS air transportation tax instructions · Flexjet fractional billing terms
Prepared by Fractional Aviation Advisors. About our principals. Last updated October 2026.