You can buy a private jet now, but will you really be able to afford it later? The attractive convenience that owning a private jet can offer, like scheduling flights on your own and being able to access private airports not reachable by commercial planes, are premium perks. But with every huge investment comes bigger responsibilities, so it’s best to sit first and consider these crucial factors to private jet ownership:
Jet Broker Deals
Your private jet broker could offer you three options to private jet ownership: full ownership, fractional ownership, or enrollment in a private jet program. The difference is the cost and level of convenience.
With full ownership, you get what you pay for. That is, you are in charge of where and when your private jet flies. This also means that you are responsible for hiring crew, crew salaries, aircraft insurance, fuel costs, maintenance and repairs of your private jet. If you are traveling less than 300 hours a year, it is not a wise choice for you, since you won’t be able to keep up with the costs of jet operation. Private jets cost around $3 million to $90 million and that isn’t including the operating costs.
With fractional ownership, you can split the costs of ownership, but you will have to check the availability of the aircraft because you are sharing schedules to fly as well. You will have to decide on a breakdown of the costs with other jet owners and agree to invest a certain amount for the upkeep of the private aircraft.
Jet Card Program
For business executives, groups and individuals who fly 25 hours in a year, a jet card program is a travel-friendly option. Owners deposit at least $150,000 on the jet card and use it as payment for flying per hour, fuel surcharges and taxi fees for the aircraft. Jet card programs vary per jet provider, so make sure to search for the best deals.
Operating costs depend on the type of private jet ownership you are getting and there are a lot of factors that increase the costs such as:
Crew Salaries and Training
For full and fractional jet owners, hiring pilots and flight attendants costs at least $150K. The size and category of your jet will determine how many crew members you need on board, so it’s best to ask your private jet provider about it. Aside from the salaries, training is also needed to keep up with the standards set by the Federal Aviation Administration (FAA). Training includes customer service, handling emergency situations and other security measures. Aside from these, if you are booking a one-way trip, then you have to send your crew back to where they came from. If you are planning to stay for a few weeks at your destination, you have to provide accommodation for them, too.
Parking Fees and Other Airport Fees
For both fractional and full jet owners, there is a need to rent hangars at the airport for parking the private aircraft. This costs around $18K. Ramp services for transporting your passengers and crew to the airport terminal costs $10K yearly.
Maintenance and Repairs
General maintenance of a private jet is around $60K a year while engine and APU maintenance cost $45K a year. Don’t forget to have your aircraft insured at an estimated $8K a year.
If you can find cheaper private aircraft vendors, then that would be best, as long as they maintain high standards of operating the private jet. Second-hand private jets could be considered too, but just like a car, jets can depreciate in value over time.