Are you a frequent flyer who finds even first-class commercial flights more frustrating than enjoyable? While you can charter a jet for your trips, the ultimate freedom lies in owning one. However, it’s crucial to determine if this investment is truly worth it.
Private jets vary significantly in price, with costs ranging from $2 million to over $100 million, depending on size, range, model, and features. Similar to used cars, private jets depreciate considerably over time, making pre-owned jets a more budget-friendly option.
Key Points to Consider
Price Range: A private jet can cost anywhere between $2 million and over $100 million.
Ongoing Expenses: These include salaries and expenses for flight crew, routine maintenance, unexpected repairs, hangar rental, and aircraft insurance.
Alternatives: Options include private jet charter services, fractional jet ownership, and membership in private jet clubs.
Chartered Flights: Rates range from a few thousand to over $10,000 per flight hour.
Factors to Consider Before Buying a Private Jet
Hourly Flight Time
The primary question is how often you fly. Vendors suggest that if you spend around 200 hours a year flying, purchasing a private jet is justified. Brokers who sell fractional ownership might argue for 400 to 600 hours per year. However, a more unbiased estimate is that 240 annual flight hours can make the operating costs of a private jet reasonable.
Travel Patterns
Your travel habits might be more critical than the number of flight hours. For instance, if you often need one-way flights, you’ll bear the cost of flying the jet and its crew back. If you stay at a destination for a week or more, you need to cover the accommodation or return travel for the crew and the plane. These costs can add up, potentially negating the benefits of owning a jet.
Ongoing Costs
Jet ownership comes with significant ongoing expenses, including routine maintenance, unexpected repairs, hangar space rental, crew salaries, and insurance. For example, replacing a blown tire can cost between $2,000 and $3,000. Annually, operating costs can range from $500,000 to $1 million. Several online calculators can help estimate these expenses for specific jet models. Buying consultants and aircraft management companies can assist with the purchase and maintenance of a jet.
Cost-Saving Options
If the expenses associated with owning a jet are prohibitive, consider these alternatives:
Charter Flights
Chartering a jet is a viable option if you prefer not to fly commercially or commit to a private jet membership. When booking a charter, consider the aircraft type, cost, number of passengers, and destination. You can arrange a charter through a jet company representative or an independent broker who can help select the best aircraft for your needs. Charter rates range from about $1,000 to over $10,000 per flight hour.
Private Flight Club Membership
Membership in a private flight club allows for short-notice bookings on various jets at fixed hourly rates. These memberships, usually sold annually, grant access to a fleet of jets without the management hassles and costs of ownership. Comparing different providers offering charter flights, fractional ownership, and flight memberships can help you find the best deal.
Cheapest Private Jet
The least expensive new private jet is the Cirrus Vision Jet, priced at $2 million. However, used jets can be found for as low as $200,000.
Is a Private Jet a Good Investment?
If your annual flight expenses exceed the cost of owning a private jet or if you fly 240 or more hours per year, owning a jet might be a worthwhile investment.
Ongoing Costs of Ownership
Ongoing expenses include maintenance, repairs, storage, and fuel, typically ranging from $500,000 to $1 million annually.