Fractional jet ownership programs offer the benefits of private aviation without the full cost of owning an aircraft outright. Companies like NetJets, Flexjet, and others sell shares in aircraft, providing owners with guaranteed access to jets without sole ownership responsibilities. But when crashes occur involving fractional aircraft, complex questions arise about who bears liability—the fractional company, the share owners, the pilots, or some combination of all three.
Understanding how fractional ownership structures affect liability helps accident victims navigate claims that can involve multiple parties, sophisticated corporate defendants, and substantial insurance coverage. These programs serve wealthy clientele, and the companies operating them maintain significant resources to defend against claims—but also to pay legitimate ones when liability is established.
How Fractional Ownership Works
Fractional ownership programs sell shares in aircraft, typically in increments representing a certain number of flight hours per year. A one-sixteenth share might provide fifty hours annually, while larger shares provide proportionally more access. Share owners pay acquisition costs for their fractional interest plus monthly management fees and hourly operating costs when they fly.
The fractional company manages all operational aspects—hiring and training pilots, maintaining aircraft, handling scheduling, and ensuring regulatory compliance. Share owners don't interact with pilots directly or manage any operational details. They simply book flights and show up at the airport. This operational control by the management company has significant implications for liability.
These programs operate under specific FAA regulations—Part 91K—that establish requirements for fractional operations distinct from both private flying under Part 91 and commercial charter under Part 135. The regulatory framework recognizes fractional programs as a unique category with their own safety requirements and operational standards. Violations of Part 91K regulations can establish negligence when they contribute to accidents.
The Management Company's Primary Liability
Fractional management companies bear primary responsibility for operational safety. They hire pilots, establish training programs, set operational procedures, maintain aircraft, and make day-to-day decisions about whether flights are safe to conduct. This comprehensive operational control creates comprehensive liability when accidents occur due to failures in any of these areas.
When pilot error causes a crash, the management company faces both vicarious liability for its employee's negligence and potential direct liability for its own failures. Did the company hire qualified pilots? Did training adequately prepare them for the conditions encountered? Did supervision catch warning signs of problems? Did operational pressure encourage risky decisions? These questions probe the company's own conduct, not just the pilot's immediate error.
Maintenance failures similarly implicate management company liability. Fractional programs maintain their own maintenance organizations or contract with approved providers. Either way, the management company bears responsibility for ensuring aircraft are airworthy. When mechanical failures cause accidents, maintenance negligence claims target the management company for its failures in this critical safety function.
Share Owner Liability—Limited but Not Zero
Individual share owners generally face limited liability for fractional program accidents. They don't operate aircraft, don't employ pilots, and don't control maintenance. Their role is essentially that of a customer purchasing flight services, which normally wouldn't create liability for operational negligence by the service provider.
However, share owners are technically owners of fractional interests in aircraft, which creates at least theoretical liability exposure. Aircraft ownership carries responsibilities, and arguments can be made that owners bear some accountability for how their aircraft are operated. These arguments typically fail against fractional share owners because the management agreements transfer all operational authority and responsibility to the management company—but the theoretical exposure explains why fractional programs typically include indemnification provisions protecting share owners.
Share owners may face liability if their own conduct contributes to an accident. A share owner who insists on departing in dangerous weather over pilot objections, who brings contraband that causes problems, or who interferes with flight operations could bear responsibility for resulting injuries. These situations are unusual but not impossible in private aviation where passengers sometimes try to assert control over operations.
Pursuing Claims Against Fractional Companies
Fractional management companies are substantial corporate defendants with significant resources. NetJets, the largest fractional program, is a Berkshire Hathaway subsidiary. Flexjet is owned by Directional Aviation Capital. These aren't fly-by-night operators who might disappear or lack ability to pay judgments. Their corporate stability provides assurance that valid claims can be collected.
These companies also maintain substantial insurance coverage appropriate to their risk profiles. Operating hundreds of aircraft flying thousands of hours annually requires comprehensive liability protection. Coverage limits are typically far higher than smaller charter operators carry. This insurance provides the primary source of compensation for accident victims, making coverage limits less likely to constrain recovery than in other private aviation accidents.
However, sophisticated defendants mean sophisticated defense. Fractional companies will vigorously contest liability, retain experienced aviation defense counsel, and fight hard in discovery and at trial. Plaintiffs pursuing these claims need equally sophisticated representation. The resources exist for substantial recovery, but obtaining it requires overcoming well-funded opposition.
Evidence and Investigation
Fractional accidents generate substantial evidence that must be preserved and obtained through litigation. Aircraft maintenance records, pilot training files, operational communications, and flight data must be secured before defendants have opportunity to control or sanitize them. Prompt spoliation letters demanding preservation are essential.
Government investigations provide valuable evidence but serve different purposes than civil litigation. The NTSB investigates to determine probable cause and improve safety, not to establish legal liability. Their findings can inform civil claims but don't resolve liability questions. Independent investigation by plaintiff's experts—accident reconstructionists, aviation safety specialists, and industry experts—supplements government work with analysis focused on legal responsibility.
Discovery in fractional accident cases often reveals systemic issues beyond the immediate accident. Training program deficiencies, maintenance shortcuts, operational pressure, and safety culture problems may emerge from internal documents. This evidence supports claims that the accident wasn't an isolated incident but a predictable result of inadequate practices.
Damages in Fractional Accident Cases
Fractional program passengers tend to be wealthy individuals—business executives, entrepreneurs, and high-net-worth families who can afford fractional ownership costs. When these passengers are killed or seriously injured, their damages often reach substantial amounts. Lost future earnings for successful professionals can total millions of dollars. Business interruption, lost opportunities, and similar economic losses compound the totals.
Non-economic damages—pain and suffering, loss of companionship, emotional distress—add to economic calculations. When families lose loved ones or when survivors suffer permanent injuries, these intangible losses warrant significant compensation regardless of the victims' wealth. The combination of high economic damages and substantial non-economic losses makes fractional accident claims among the largest individual aviation cases outside mass commercial disasters.
Punitive damages may be available when evidence reveals egregious conduct by the management company. Knowingly operating with unqualified pilots, deferring critical maintenance, pressuring pilots to fly in dangerous conditions—these behaviors can support punitive claims that multiply total recovery beyond compensatory damages.
Choosing Experienced Representation
Fractional accident victims should seek attorneys with specific experience in aviation litigation against substantial defendants. These cases require understanding of aviation regulations and operations, ability to manage complex discovery from sophisticated opponents, and resources to retain appropriate experts. General personal injury experience, while valuable, doesn't substitute for aviation-specific expertise in these technically demanding cases.
The investment in experienced counsel pays dividends throughout the case. Proper evidence preservation prevents spoliation problems. Targeted discovery efficiently obtains critical documents. Expert analysis translates technical evidence into persuasive presentations. Strategic negotiation leverages case strength into optimal settlements or, when necessary, favorable trial outcomes. Fractional accident cases reward sophisticated handling that matches the sophistication of the defendants.