Frax Aircraft Values Dropping, Says Charter Broker

CharterAuction.com is claiming that “many [fractional] customers who were sold [shares] five years ago on the basis of a 90-percent aircraft resale value are receiving less than 60 percent.” This is, in many cases, in addition to a 5- to 10-percent remarketing fee charged by the fractional management company. Also, many corporations have depreciated the asset over the five years, which triggers capital gains taxes upon resale, noted CharterAuction.com.