Buying a private jet is certainly a monumental investment, and there are many things to consider beforehand to determine if doing so makes financial sense for you and your company. Most experts agree that unless you fly more than 350-400 hours a year, a private jet probably isn’t for you, although you can still look into fractional jet ownership – which allows you to share private jet services with other businesses and individuals. However, if you fly more that 400 hours a year, a private jet could provide your company with a significant cost savings over commercial airlines.
If you meet the flight hours criteria described above, you may want to begin the process of looking into the cost of buying your own plane. The price tag for a private jet can range between $3 million and $50 million, depending on the size and range of the jet you buy. A light jet usually costs between $3 and $8 million dollars, and can carry 5-8 passengers a maximum distance of approximately 2,000 miles. The next size up, a midsize executive jet, can carry up to 9 passengers and will cost approximately $9 to $16 million dollars. This size jet typically has a range of about 2,000-3,000 miles. Finally, there are large executive jets that can carry about 12 passengers with a range of 4,000 miles, at a cost of about $17 to $50 million dollars.
After you’ve decided what size, cost, and flying range best fits your businesses needs, it’s time to start looking for the perfect jet. One of the best ways to find a jet nowadays is online – there are many private jet websites that offer pricing online, as well as information on the jet’s specifications. You may also be able to find a used or repossessed jet that meets your needs at a better price than a new plane.
However, don’t think that the cost of the plane itself is all you’ll pay – there are many other costs associated with owning a private jet that you may not think about initially. Insurance, catering, fuel, and pilots call all add up to be hundreds of thousands of dollars each year. If this sounds overwhelming, you may want to look into a jet aircraft management company that will take of these needs for your company, typically for a fee of around $100,000 to $200,000 a year. Of course, this fee will vary depending on how much your company uses the jet and how large the jet is.
If you choose to operate without a jet management company, you’ll need to find your own pilot. Depending on how often you fly and the type of jet you purchase, you can expect to pay $20,000 to $120,000 a year for a pilot. While private pilots don’t usually make an equivalent salary of a traditional airline pilot, it’s still a pretty significant investment.
Many businesses, after running the numbers associated with buying a private jet, decide that the cost and maintenance fees of owning a plane are simply too much. However, don’t give up hope yet – fractional jet ownership may be a more cost-effective means of private air travel for your business. These programs allow you to buy a share in a jet from a jet management company – essentially, you’re paying to share a private jet with other companies. All you pay is a monthly fee and an hourly operation cost. Many times, you can have a jet ready within just an hour’s notice, depending on where the management company is located.