If you’re thinking about purchasing a private jet, and are fortunate enough to do so, it’s essential to understand that it comes with a whole new world of responsibility.
The biggest thing to consider is the expenses. A lot more goes into determining your private jet cost of ownership than just the initial price tag.
So, how much does a private jet cost? Keep reading to find out.
How Private Jet Cost is Determined
The average cost of a private jet depends on quite a few factors. It certainly isn’t the same as buying a home; in fact, many business jet owners report that their aircraft far exceeds the value of their primary residence, and the initial private jet price isn’t the only variable that goes into your purchase.
Let’s take a closer look at what really goes into the cost of buying and owning a private jet:
#1 The Cost of the Actual Aircraft
One of the biggest things to take into account is whether you plan to buy, lease, or charter a private jet.
Buying a private jet outright isn’t just expensive, but it involves an overall sense of responsibility. First, you must consider the make and model of the aircraft. Then the age of the plane and any added features or amenities you plan to add. Lastly, you must consider the costs of maintaining a private jet, which could equate to a cool million or two—annually.
Keeping these factors in mind, the price of private jets can range anywhere from a few million to 90 million.
#2 The Insurance
You can’t fly without insurance, and the amount you will pay for your premium will depend on how often you fly, the year, make and model of the jet, and more. The average rate is about fourteen percent of the hull value, which could cost up to $50,000 annually—or more.
#3 The Operational Costs
Fuel is arguably the priciest variable, aside from purchasing a private jet outright. Fuel is considered a direct cost that will depend on the type of aircraft, its fuel burn rate, the duration of the flight, and of course, so are the landing and handling fees.
Another thing to consider is the salaries and benefits of the captain and crew. You may not need a flight attendant, but you certainly need a pilot. Depending on how many people you plan to staff, you’re going to want to set aside a relatively large budget to pay for your new staff, keep them trained, and don’t forget you’ll need a backup pilot or two just in the event there is a conflict.
#4 The Ongoing Maintenance
On average, private jet owners only keep their planes for about five years. That’s five years of airframe and engine maintenance, annual, hourly and calender checks, oil changes, detailing, component replacements, and so on.
You must adhere to your scheduled services, even if you haven’t flown your plane in a year. Failure to maintain your aircraft can result in a loss of airworthiness.
#5 Don’t Forget About Hangars
You’re going to need a place to store your aircraft, and you can’t use just any facility. This means you’ll need to find a hangar space to store your jet. Depending on where the hangar is and the amenities with Fixed Base Operators (FBOs), you’re looking at anywhere from several to tens of thousand dollars a month.
It doesn’t hurt to get a second opinion for private jet cost determination. If you’re still looking to buy a private aircraft, we can help. Contact us and our team of experts can work with you to analyze and crunch the numbers on your future private jet.