Buying a private jet for personal or business use is a major investment. Aircraft, of course, are expensive to purchase – but also to maintain and operate. A private aircraft can offer many advantages, but getting the costing right is very important to make the most of it.
Guides For Private Jet Owners
Maintenance & Storage
Regardless of the level of use, there are many costs associated with aircraft ownership. Without even considering flying-related costs, aircraft will need to be securely stored at an airport throughout the year. Elite Traveller quotes average monthly fees for hangar use of $3,000. But at major airports, this could be much higher. Honeywell estimates fees at LAX as high as $12,000 per month.
Maintenance and upkeep need to be considered too. Aircraft need to undergo regular checks and certification to stay airborne. You will need to hire ground handling agents or ground handling services to help maintain your jet. There are also unexpected maintenance costs, or part replacement, just like with any form of transport or machinery. Insurance also needs to be considered – around $50,000 would be typical.
Crew Costs
Unless you plan to fly the aircraft yourself, you will need to budget for flight crew. Depending on use, this could be a full-time crew or hired as needed. A larger jet may also need hostess staff onboard. Elite Traveller provides a guide of around $200,000 per year for crew – but this will vary depending on time requirements.
Variable / Flight Based Operating Costs
There are several other costs associated with any flight. Aviation Fuel is, of course, an obvious one and equates to a large proportion of the operating costs. Jet fuel currently costs around $2.00 per gallon on average. A large aircraft like the Gulfstream G700 will burn around 380 gallons per hour at the cost of $760.
You will also need to pay fees based on the route. Airports set varying landing fees for all aircraft, and authorities charge ‘overflight fees’ for airspace and ATC usage. These are calculated differently in every country. In the US, the fee is based simply on distance (currently set at $61.75 per 100 nautical miles). In Canada, aircraft weight is also taken into account. If flying internationally, some countries required the advance purchase of flight permits.
Overall Hourly Operating Cost
Putting all the fixed and variable costs together is not easy. There are large variations depending on aircraft use, location, and routes. As a good guide, some comprehensive estimates have been put together by the Aircraft Owner and Pilots Association, showing average total hourly operating costs for different aircraft. These include:
- Cessna Citian Mustang: $1,015
- HondaJet HA-420: $1,135
- Cessna Citation M2: $1,395
- Learjet 75: $2,172
- Gulfstream G150: $2,380
- Dassault Falcon 900LX: $3,588
- Embraer Legacy 600: $3,740
- Gulfstream G450: $4,747
Buying or Chartering Aircraft
With such operating costs in mind, many private jet users choose to charter aircraft instead. This is usually arranged on a per-hour basis, including all costs. There are often options for fixed purchases of numbers of hours per year or even fractional ownership schemes.
Chartering will not be as convenient as having constant access to your own aircraft, but bear in mind too that charter companies can offer a variety of aircraft that may suit different flight types. Availability during scheduled maintenance will also be easier. Many companies opt for corporate jet chartering to enable staff to travel quickly without having to use commercial airlines.
Final Thoughts
The costs not only to buy the aircraft but also to maintain and operate it should be considered when considering private jet purchases. There are many different costs of running a jet to take into account and different ways to approach these depending on aircraft type and usage requirements. This is hopefully a starting point for you to fully consider costs for aircraft of interest.
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If you have any questions about the costs of operating a private jet, feel free to contact our team today for more information.
