Originally Posted by
Allegheny
There was a study done by KPMG in 2008. The 26 page report surmises that the problems in the Fractional industry have to do with pricing models more than strictly operational factors. I say surmises in that none of the big Fractional operators, NetJets, Flexjet, are publicly held so they don't report detailed financials.
The report is very interesting and it shows the revenue problems with the Fractional aircraft service model. It is worth reading.
https://www.irmi.com/docs/default-so...p.pdf?sfvrsn=4
I’m no NetJets cheerleader but that report was written a long time ago. NetJets has been consistently profitable for much of the last decade. Although the report lists some interesting factors that will always affect the business model, overall its assumptions and conclusions are woefully outdated.