Owning a private jet can be liberating for those who need to fly often. Whether you own or charter, by flying private, you avoid the crowds and fly more comfortably. You optimise your travel time by flying directly, often coming closer to your destination than you would with a commercial airline connection.
But private jet ownership requires a considerable investment, both up-front and ongoing. Here are the costs you should consider when buying a jet.
Aircraft purchase price
Buying a private jet varies widely from $2 million to $100 million. The main up-front cost drivers are the model of aircraft you select and whether you buy a new or a pre-owned aircraft.
You can buy a pre-owned jet more economically than a new jet. Still, depending on the condition of the aircraft, you might have to invest in equipment upgrades, interior refurbishment, and maintenance. That will quickly add up.
Upgrading communications systems (installing Wi-Fi) can cost over $500,000, plus $100,000 for the radome antenna.
Replacing woodwork in the jet cabin can cost between $300,000 and $500,000
Covering the seats in new leather covers can cost $200,000
Replacing the carpet can cost anywhere from $40,000 to $90,000
Some jet owners spend millions of dollars refurbishing their pre-owned aircraft to suit their style and comfort preferences.
Maintenance costs can quickly increase to $500,000-$1,000,000 or more. For those considering a pre-owned aircraft, a pre-buy inspection is crucial. You need to know the maintenance investment required before you buy.
Before deciding, you should also consider the time the aircraft will need to be grounded due to maintenance and refurbishment. It can take months before you finally fly your pre-owned aircraft. That may still be a shorter timeline than waiting for a new jet directly from the OEM, but it’s best to know your options to ensure you are happy with your decision.
Ongoing Costs
Your choice of aircraft will also impact your ongoing costs. A general estimate of annual recurring costs for jet operations ranges from $500,000 to $1,000,000. But, if we break down those costs, it’s easy to see that they could be higher, particularly for older pre-owned aircraft, which may require more maintenance.
Fuel is a large portion of operations costs and fluctuates significantly based on local market prices. Expect higher fuel costs for larger jets that fly longer distances. At a jet fuel price of $5.00 per gallon:
A light jet can cost as much as $1,100 per flight hour, up to $275,000 per year if you fly 250 hours.
A midsize jet can cost $1,500 per hour or $375,000 per year (250 hours).
A super midsize can cost $1,900 per hour or $475,000 per year (250 hours).
A large jet can cost $2,700 per hour. As it is more likely that you would fly more hours by taking longer journeys, annual costs would also increase significantly.
Aircraft hangarage (storage) costs can range from $1,500 to $3,000 per month in rent.
Building your own aircraft hangar can cost anywhere from $30,000 to several million dollars, depending on your requirements.
Crew costs
An aircraft rated for a single pilot will have lower ongoing staffing costs than a two-pilot aircraft, though single-pilot planes generally fly shorter distances. Two-pilot operations may be preferable for safety and availability. Salaries vary based on experience and rank, ranging from a median of $86,000 to over $300,000 per year.
You may need to hire at least one cabin crew member, with salaries ranging from $50,000-$75,000 per year.
You will also need to provide accommodation and living expenses for the crew who remain at your away location waiting for your trip to conclude.
Routine maintenance can cost 2% of the original aircraft price per year for a pre-owned aircraft that may require heavier maintenance. Unplanned maintenance events like tire replacements and mandatory regulatory inspection costs can cost several thousand dollars annually.
Private jet insurance could cost as little as $10,000 or as much as $500,000 per year, based on liability limits, aircraft use, coverage, pilot qualifications, and other factors.
You will also need to cover FBO costs for catering, aircraft cleaning, ground handling, etc.
To get the most out of your aircraft investment, you should consult an experienced broker who can advise you on which aircraft type is right for your needs. Be sure to choose someone you can rely on to simplify the process, providing reliable and honest information while making the right connections for inspections, insurance, and financing. LunaSolutions’ aviation experts can help prospective aircraft buyers seamlessly navigate the complexities of the process.
Even as a jet owner, there will be times when you want to charter a jet to cover aircraft downtime or to fly a mission beyond the capabilities of your aircraft. LunaJets advisors are only a call away when the unexpected arises.
FAQs
A light jet can cost as much as $1,100 per flight hour, up to $275,000 per year if you fly 250 hours. A midsize jet can cost $1,500 per hour or $375,000 per year (250 hours). A super midsize can cost $1,900 per hour or $475,000 per year (250 hours). A large jet can cost $2,700 per hour.
What is the real cost of owning a private jet? ›
What Are the Ongoing Costs Associated With Owning a Private Jet? Ongoing costs with owning a private jet include maintenance, repairs, storage, fuel, and more. Costs can range between $500,000 to $1 million annually.
How much should you be worth to own a private jet? ›
How Rich You Need to Be to Own a BIG Luxurious Top-of-the-line Jet. The typical owner of large luxury private jet has a net worth between $60 million and $70 million. The average wealth of owners of midrange and super-midsize aircraft is around $120 million.
How profitable is owning a private jet? ›
“Much like cars, planes start depreciating the minute they're purchased. From the initial cost to ongoing maintenance, planes are not a wise investment for individuals. You're always losing money. When you own the aircraft you are always paying for it, even when it's not in use.
How much does shared ownership of a private jet cost? ›
The business model is successful with operators like Netjets, which have over 700 aircraft available for use by their clients. Shared ownership costs typically start around $350,000 upfront plus $2,000/hour but depend heavily on aircraft type and the negotiations between operators and prospective owners.
Is it smart to buy a private jet? ›
A good reference to consider is if you are spending 300 hours or more a year in the air, a private jet is a smart investment. If you are flying less, consider chartering until your needs require a private jet.
What is the cheapest private jet to buy? ›
The cheapest private jet on the market is the small but mighty Cirrus Vision Jet at $2 million. The Vision Jet is the world's first single-engine private jet, and is powered by a Williams International FJ33-5A turbofan engine, which produces 1,800lbs of thrust.
At what point is a private jet worth it? ›
Firstly, it's important to deduce how often you'll use the plane. Owning a private jet comes with steep annual fixed costs. It makes little sense to buy a personal jet if you are not a frequent flyer. As a rule, if you don't fly for over 400 hours per year, the cost of owning a private jet is rarely worth it.
Can a millionaire afford a private jet? ›
Private jet ownership is a considerable upfront and ongoing investment, and most millionaires can't even afford one.
Is it better to rent or own a private jet? ›
Cost savings: Chartering a private jet is significantly more economical than buying your own plane. When you charter, you'll pay only for the flights you use, rather than for the entire purchase price of an aircraft that may spend much of its time sitting in the hangar.
If you only fly a few trips per year, or indeed if you fly under 100 hours annually, charter is the smarter option. By chartering a private jet, you can secure all the benefits and amenities of luxury air travel while paying only for upkeep proportional to how often you actually fly.
Can a private jet pay for itself? ›
If a company is aggressively marketing your aircraft to its clients, [covering all your costs] is certainly achievable." Rimmer agreed. "You're depending on the business that your charter company has," he said. "You want to make sure that it has the demand to keep your airplane as busy as you want it to be."
What is the minimum income for a private jet? ›
To fly private on a regular basis, it's best to have both a $1+ million annual income and $25+ million net worth. In years when your income drops below $1 million, even if you still have a $25 million net worth, fly commercial instead.
Do private jet owners rent out their jets? ›
Many owners enlist private jet management companies to oversee maintenance, crew training and retention and aircraft safety. Through many management companies, these owners can then rent their aircraft out for charter to help cover some of the annual ownership costs.
How much is it to own and maintain a private jet? ›
Your choice of aircraft will also impact your ongoing costs. A general estimate of annual recurring costs for jet operations ranges from $500,000 to $1,000,000. But, if we break down those costs, it's easy to see that they could be higher, particularly for older pre-owned aircraft, which may require more maintenance.
What is the starting price of a private jet? ›
The cost of a private jet is determined by its size and features. Typically, a private jet can cost up to Rs 20 crore, while some may even be worth one billion rupees. The Cirrus Vision Jet is considered the most affordable private jet, with a price of around Rs 16 crore.
Is it cheaper to own or rent a private jet? ›
As previously mentioned, it really boils down to frequency and value for money. Very few individuals spend more than 400 hours in the air every year. And so the short answer would suggest that, unless you are one of these people, renting is the economical option.
Is a private jet worth it? ›
Industry insiders claim that it's not worth buying a jet unless you expect to fly 150 or 200 hours a year. Anything less and the money you're going to spend for the purchase and repair of the aircraft is money you're never going to get back-even though you can resell the jet down the line.
How much does Taylor Swift's private jet cost? ›
Her jet of choice is the luxurious Dassault 7X. But even after paying around $54 million for the jet, it doesn't fly for free. The Dassault 7X consumes 385 gallons of fuel an hour. Assuming the fuel price is $5 per gallon, it costs $1,925 to fuel the craft for an hour.
How much does it cost to land a private jet? ›
1.1.
b) A minimum fee of Rs. 16,341 and Rs. 21,788 shall be charged per single domestic and international landing respectively for all types of aircraft/ helicopter flights, including but not limited to domestic landing, international landing and general aviation landing.
