The Real Cost of Owning a Private Jet: Is There an Alternative?

Professionals and business moguls fly frequently to offer services in new locations or meet investors and business partners. Commercial airlines provide first-class service to executives and individuals who want to enjoy an improved travel experience. However, these airlines have many passengers, and some clients might find them or their services unappealing. So, some decide to charter a jet while others choose to buy one to enjoy the ultimate freedom.

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Is buying a private jet a sound investment decision? To determine if buying one is justifiable, potential buyers should consider relevant factors and evaluate alternative options. A private jet might cost anything between $2 million and $110 million, depending on the model, features, range, size, and year of manufacture. With this investment amount in mind, a potential private jet buyer must weigh their options correctly to avoid making costly mistakes.

Private jets depreciate like cars, which means buyers can get a less expensive, used private plane. However, used ones might attract additional maintenance costs. This article will discuss the actual cost of owning a private jet and alternatives potential private jet buyers can consider.

Consider Flying Distance and Frequency When Buying a Private Jet

One critical question a private jet buyer should ask is how much they fly and how frequently they do. A typical aircraft vendor will likely convince a potential buyer who flies at least 200 hours to own a private jet. However, potential buyers need to dig deeper since the vendor is in business and wants to win customers.

Generally, travelers who fly between 200 and 600 hours annually can choose to buy or opt for a fractional jet option. Fractional ownership is more or less like a timeshare arrangement in real estate where many people buy one property and decide when each should use it. So, flying 200 hours or more is a justifiable reason to consider looking for a private jet or alternative options.

Is Travel Routine an Important Factor to Consider?

A traveler who usually books a one-way flight and travels back after a few weeks might spend too much money if they buy a private jet. This is because the jet owner will need additional costs to send the plane back home after arriving at the destination.

If they choose not to send the crew back, they will cater to their food and accommodation in the new location, which increases jet ownership costs. In this case, the costs of owning and operating a private jet will likely be higher than using a charter jet or fractional ownership options.

Ongoing Costs of Owning a Private Jet

Another key factor to keep in mind before buying a private jet is the ongoing expenses. Jet owners have to pay for aircraft insurance, maintenance, and downtime costs, even when the plane is on the ground. Therefore, the ongoing costs can quickly accumulate and exceed the potential benefits of owning the plane.

For instance, a tire burst can cost about $2,000 or more to fix. Additional costs include hangar fees and crew salaries, which the jet owner will incur even when the private jet is not in use.

A typical private jet can attract ongoing expenses of between $500,000 to $1 million annually. Potential jet buyers can use only expense calculators to estimate the cost based on the jet model and other factors. Aircraft management companies can also provide a breakdown of expected expenses. They can also help aspiring private jet owners buy and manage the aircraft at a fee.

What Alternatives Do Potential Private Jet Buyers Have?

If the cost of owning a private jet does not align with one’s budget, there are other affordable ways to enjoy the convenience of owning one. The most popular alternative depends on travel routine, distance, travel frequency, and budget. The options that provide an affordable and reliable jet experience include joining a private flight club, fractional ownership, and chartering a flight.

When to Book a Charter

Travelers who dislike travelling with commercial airlines and want to avoid costs and commitment of ownership can book a chartered flight. The cost will vary depending on the number of passengers, the destination, the service provider, and the travel duration.

Travelers who book chartered flights with the jet company are likely to pay less than those who book through independent brokers or agents. The cost of a chartered flight ranges from $1,200 to $10,000 per flight hour, which is still expensive for frequent and long-distance travelers.

When to Choose Fractional Ownership

Fractional private jet ownership reduces the costs and barriers of owning and operating an aircraft. It is ideal for frequent travelers who do not like the hassles of commercial airlines or full jet ownership. Members only pay the initial investment amount, monthly management fee, and affordable hourly rate. This allows them to enjoy short and long-distance private flights without the extra costs or commitments of buying and maintaining a private jet.

When to Join a Flight Club

Just like the fractional ownership option, private flight clubs give members access to private jets for local or international flights at short notice. The members pay an hourly rate besides the annual membership fee. Charter companies sell memberships for easy access to their fleet and convenient booking. However, travelers should shop around and compare the costs and benefits of each option to get value for money.

Is Buying a Private Jet a Good Investment?

The correct answer depends on the individual, but alternatives suit the needs of most travelers. Private jets are generally expensive to buy and maintain. Owning one jet means one might need to hire a different one when there are more passengers or when flying over longer distances than theirs can travel. However, alternative options such as fractional ownership and flight clubs improve access to private jets without additional commitments or hassles.

Owning a private jet is a good option for frequent travelers with a generous budget. However, alternative options such as flight clubs, chartering flights, and fractional ownership can increase access to private jets without the commitments of ownership. Therefore, people who fly frequently should weigh their options correctly to make informed decisions.