How Much Is a Private Jet?

Are you a frequent flyer? Do you find even airlines' first-class service more frustrating than fulfilling? You can charter a jet, but the greatest freedom comes when you own one. Before you buy, though, you should consider whether the investment is truly justified.

Depending on size, range, model, and features, a private jet can set you back anywhere from $2 million to over $100 million. Much like used cars, private jets are subject to serious depreciation. If you are looking for a bargain, second-hand jets are significantly less expensive.

Things to Consider Before Purchasing a Private Jet

Hourly Rate

The first logical question that comes to mind is: How much do you fly? Aircraft vendors will tell you that if you spend 200 hours a year in the sky, it justifies the outright purchase of a private jet. Remember, they're also trying to sell you one.

Aircraft brokers who offer fractional ownership in a plane will say it’s more like 400 to 600 hours. They, of course, are also trying to sell you something. Fractional ownership is similar to a timeshare in real estate.

An unbiased rule of thumb is that an annual flight time of at least 240 hours is required to achieve a reasonable operating cost for a private jet.

Your Travel Routine

The type of travel you do might be even more important than air hours as a factor in whether to buy a jet. If, for instance, you frequently have to schedule one-way flights, then you’ll have to pay the cost of sending the plane and its crew back.

Alternatively, if you plan to remain at a particular destination for a week or more, the pilots, crew, and plane must be accommodated for the entire period or sent home. In both cases, the costs may well outweigh the benefits of buying in the first place.

Ongoing Costs

Regardless of where and how frequently you intend to fly, jet owners are faced with substantial ongoing expenses, beginning with routine maintenance and on-the-ground downtime.

Then there are unforeseen repairs. A blown tire can cost $2,000 to $3,000 to replace. There’s also hangarage—meaning a parking spot in a hangar—plus crew salaries and aircraft insurance. As the owner, you have to cover everything.

As a rule of thumb, you can expect to pay around $500,000 to $1 million annually in operating costs. You can find several nifty aircraft cost calculators online. One site even breaks down expenses involved with specific jet brands and models.

If you do decide to make a purchase, there are several buying consultants and aircraft management companies that can help you arrange the purchase and maintain it for you.

Other Options

If the running costs combined with the initial outlay simply don’t work in your financial favor, there are several far less expensive ways to join the private jet set. You could book a charter for a specific trip, purchase partial ownership in a jet, or buy a private flight club membership.

Book a Charter

Charting a flight can be a great option for travelers not wanting to fly commercially or subscribe to a private jet membership. To book a chartered flight, it is important to choose with whom the flight will be booked, the type of aircraft needed based on the number of passengers and destination, cost, and other factors.

A traveler can charter a flight directly with the jet company representative or with an independent broker, who has sufficient knowledge of the industry and its players and can aid in the selection of the best aircraft for the traveler's specific needs.

The costs to charter a flight range from approximately $1,000 to more than $10,000 per flight hour. For frequent fliers, however, it might be more feasible to consider charter club or private jet memberships.

Private Flight Club Membership

The private flight club membership enables short-notice booking for domestic or international flights on a range of jets at set hourly rates. To join, travelers purchase memberships from a charter company, which, in turn, makes available its fleet of jets. Subscriptions are typically sold in annual increments, with a minimum term of one year.

Any of these options provide the custom-craft experience without the management hassle and associated costs. It pays to shop around. There are many competitors offering charter flights, fractional jet ownership, and private flight memberships.

Unless money is no object, the steep annual costs of running a jet make it a cost-effective investment only for frequent flyers with specific needs.