What's Happening with Fractional Ownership of Airplanes?

This past month, we've seen Rich Santulli resign from Net Jets and Jet Republic cease their European operations.

What does this mean for the future of aircraft fractional ownership?

In my opinion, a few things:

• Jet Republic started operating at a very difficult time--namely last fall. I would surmise their funding dried up (as is happening to funding everywhere) and they were unable to proceed with their aircraft order for Bombardier Lear 60's.
• Net Jets has operated for years without making a profit. I  can recall one quarter in the last 10 years where they reported a profit. At the end of Q2, 2009, they were posting a loss of 250 million. There was no way they could continue on this path of 'non profitability'.  I'm sure that's why Rich Santulli resigned. They need to consolidate and cost-cut and an outsider would be more able to get this done.

The flaw of the fractional model is aircraft acquisition. The current environment is much more accepting of a model where you don't own anything.