There is a HUGE difference between buying a fractional jet card and owning and operating your own aircraft. There usually is a logical progression for most people who enter the world of private aviation for the first time. Many will begin with on demand charter and quickly realize the benefits that travelling privately has to offer. Next many will buy a block charter card which is offered by many different charter brokers. With a block charter card you pay one way rates and no repositioning fees. Also you are guaranteed an aircraft with a specific callout time. You cannot be guaranteed an aircraft with on demand charter since aircraft are always subject to availability. Block charter cards are usually offered by brokers who usually do not own or operate any of the aircraft they schedule. Instead they use a network of charter operators. Many people who are block charter customers fly anywhere between 30-100 hours a year versus on demand customes who fly usually less than 30 hours per year. For some the block charter route will be the solution that best suites their interest.
Even though a fractional jet card is on average about 30% more expensive than a block charter card it is an option that many people pursue for several different reasons. One is the fleet consistency. With block charter you never know which aircraft will show up. You could fly on as many as 10-20 different aircraft types, depending on which cabin category you choose, ranging in age from brand new to 30 years old. In addition there is inconsistency between operators, specifically crew training and maintenance. With a fractional jet card you buy into a specific aircraft type and the aircraft are operated, maintained, and crewed all by the same company. In addition they will usually have the same paint and interiors. Just to add a quick note there has never been a fatal accident on a fractional aircraft. There is a much higher degree of consistency with a fractional jet card than with a block charter card. The common fractional jet card owner usually flys between 25-50 hours per year and mostly for personal use.
For most people flying between 50-250 hours per year, fractional is a good choice. You actually purchase a portion of the aircraft, depending on the number of hours per year you fly, and are titled on that aircraft. This allows you to depreciate the aircraft which is a significant advantage for those using the aircraft for business purposes. With fractional you are guaranteed an aircraft with as little as 6 hours callout. Most fractional programs also have a provision for multiple use of aircraft as well. All the leading fractional providers offer an expanded service area that usually includes the Carribbean, Mexico, and Canada with the option to waive ferry fees to bring the aircraft back to the U.S. Netjets and Flexjet also offer ferry fee waivers to Europe. There are typically four costs involved with fractional which differs greatly from the debit model of jet cards. First you have the purchase price, which on the low side is around $400k, which will start you off flying in a 1/16th share that gives you 50 flight hours per year, the minimum required interest. Larger aircraft and multiple shares will reach high into the 7 figure range. Second you have a monthly management fee which will usually be around the $6k to $7k per month range for a light jet such as an Encore or a Learjet 40. Third you have a base hourly rate for costs such as engine maintenance, base fuel costs, catering, landing fees and so forth. Fourth there is the fuel component adjustment which fluctuates depending on current fuel costs. As you can probably imagine it is pretty high right know. When you compare all in costs per hour, fractional will be less than a fractional jet card but more than a block charter card unless you take into consideration tax benefits of owning the aircraft in which case the after tax all in cost per hour may be lower.
Then there is buying the whole aircraft. Depending on the costs of the fractional aircraft and program you may justify owning and operating an aircraft, or having your aircraft managed. This financial justification usually falls somewhere between the 200-400 hour mark. With whole aircraft ownership the aircraft is at your beckon call, you can keep your personal belongings in the aircraft while you conduct your business, and you can have one consistent crew. There are a number of other issues and benefits with owning your own aircraft which are too numerous to mention in this already lengthy post.
I hope this sheds a little light on the world of private aviation. Owning an aircraft is one of the most expensive purchases one can make and can be a very costly if the wrong decision is made. If you have any questions I would be more than happy to lend my .02 cents but at the least I would encourage you to consult with a knowledgable professional about the different options available and which one would best suit your individual situation.