Have you wondered what it would be like and even cost to own a private plane? Have you dreamt about waking up, picking up your bag, and calling your captain to take you to another country?
While millions of people dream about enjoying the luxuries and glamour of owning a private jet, but few live the dream of owning one or two private jets.
This article will discuss things to consider before purchasing a private plane, the average cost, and how much it takes to run and maintain it annually. Keep reading so that you learn how to make your dream of owning a private plane a reality someday.
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Things to Consider Before Buying a Private Plane
Spending millions of dollars on fulfilling your dream fantasy should be done wisely. Certain factors should impact your decision on whether or not you need to buy a plane. What type of plane, the form of ownership, and the cost price would be best suited to your finances?
Private aviation experts have highlighted 4 essential factors you must consider before buying a private plane.
How many hours do you fly?
This is more important than the high cost of purchasing a private jet. Why is that? Because it is only until you fly regularly would you require a private jet to fulfill your travel needs?
Ask yourself: How much do you fly? Aircraft manufacturers and their brokers will advise you to buy a plane if you spend 150-200 hours a year traveling by air. Well, that’s not a justifiable flight hour requirement for the outright purchase of a private jet.
Remember, these fine folks are particular about selling you their planes.
Some representatives of aircraft vendors may say it’s more like 100 to 150 hours. Remember, these friendlies are also trying to sell you their ‘birds’. These estimates usually come from brokers that offer high-net-worth individuals (HNWIs) and companies fractional ownership of a plane. Fractional ownership is similar to a timeshare in real estate.
Regarding the minimum flight hours, an unbiased rule of thumb is that if you fly at least 200 hours a year, you may opt for buying your plane or owning part of a plane in a timeshare with others.
It won’t make sense to buy a plane that will sit in the hangar for 6 months without usage. The aircraft will lose its value fast, and the essence of purchasing it in the first place will not be evident since you don’t travel a lot.
You can also become a travel agent to make money from people purchasing private planes. See how to make money from it. How Do Travel Agents Make Money?
Your Travel Routine
The second most important factor is the type of travel you do regularly.
For instance, if you frequently travel to a nearby state for business, buying a plane won’t be necessary to take short routes.
On the other hand, if you always travel coast-to-coast or to other countries to conduct business, then using a private plane to fulfill those trips will make your travel easier for you.
Also, if your travel routine comprises one-way flights all the time, you’ll not see the need to burden yourself with the financial cost of having to pay cost of sending your private plane and its crew back and forth.
If you’d refused to send it back, you will be burdened with the cost of caring for the accommodation and feeding of the pilot and hostess if you have one.
Alternatively, if you plan on quick two-way flights, maybe just for business meetings, tours, and supervision, you can buy a plane to hop in and out of those essential short trips you’ll often take.
Ongoing Costs
Regardless of where and how frequently you intend to fly, the ongoing costs of running a private jet are no joke.
Private jet owners face substantial ongoing expenses every time, whether or not there are using the plane.
The routine maintenance and on-the-ground downtime costs are unlike the few bucks you pay the mechanic for a flat tire or oil change.
For a private plane it costs more. A blown tire can cost $2,000 -3,000 to replace. Hangarage fees aren’t as cheap as your average $100 a year car park spot. The biggest expense goes to crew salaries and aircraft insurance is a must.
LibertyJet, a famous private aircraft broker reports that you can expect to pay around $500,000 to $1 million annually in operating costs.
Private plane owners can earn from using their planes for ambulance services. How Much Does An Air Ambulance Flight Cost?
Form of ownership
The two forms of private jet ownership are full one-man-squad and fractional ownership.
You buy and run the private plane in full ownership all by yourself, all from your pocket. You bear all the liabilities of the plane as it is your personal property.
On the other hand, fractional ownership means that you and other rich people have shares in the plane’s ownership.
Usually, some firms specialize in allotting the timeshare each owner can use. Thus, the plane may not always be readily available to you in this instance.
It is similar to a timeshare in real estate but the upside to it is that you share the cost with your part-owners under the regulation of the selected management firm.
Size of the plane
As a rule of thumb, the bigger the plane, the farther it can travel (high range distance) and vice-versa. But in like manner, the bigger the plane, the more money you spend on it.
Private planes are categorized based on their size into short-range, mid-size, super mid-size, and heavy jets. A small short-range jet like the Pilatus PC-12 may cost less to buy and run.
Also, it will consume like fuel and require maybe just one pilot.
On the flip side, a super mid-size jet like the Embraer Praetor 600 or a heavy jet like the Bombardier Global Express will cost several tens of millions to purchase and a few good millions to run it.
They will also require 2 pilots and an air hostess to operate the aircraft.
Asides from private plane cost, learn about helicopter costs. See the 10 Most Expensive Helicopters in the World | 2023.
How Much Does a Private Jet Cost?
A private jet can cost from low as $2 million to as high as $85 million, depending on its size and range.
The model, production year, and plane features can raise the price of one exact-looking plane over the other. So the price of a private jet can vary.
It can vary also due to the engine hours on the plane if it’s a second or third-hand plane. The more time the former owners spent traveling the lesser the purchase price and value of the plane.
In addition, the make and model of the plane can raise or lower the price. Old-time airplane brands like Gulfstream and Bombardier have costlier planes compared to Embraer and Honda. And the reason is simple, they have a stronger reputation and brand presence.
So you see that the cost price of a private jet can differ therefore, one must do his research before buying a private jet.
If you do decide to make a purchase, you have to meet with one of the several buying consultants some of which you can reach out to online. The expert will interview you and find out if your travel needs will be fulfilled with your choice.
A good consultant will break down specific jet brands and models’ expenses. Be careful with who you talk to because some may not have your best interest at heart and may rather be concerned about the commissions they’ll receive.
Many private jet owners hire aircraft management companies to help them arrange the purchase and maintain it in their absence. In addition, you can find several aircraft cost calculators online.
Do the math and check if your newly found millions will be able to afford a jet now.
The Cost of Operating and Maintaining a Private Jet
Sample Operating Budget sourced from LibertyJet.com
| Cost | flying 200 hours/year | flying 400 hours/year |
| Direct Operating Costs (DOC) | ||
| Fuel Cost @ $4.40/gal Updated to Nat’l Avg Each Week | $264,880 | $529,760 |
| Maintenance | $184,201 | $368,402 |
| Engine Overhaul | $118,742 | $237,483 |
| Misc Crew/Landing/Handling | $40,000 | $80,000 |
| Miscellaneous Variable | $5,000 | $10,000 |
| Total Direct Operating Costs (DOC) | $612,823 | $1,225,646 |
| Fixed Costs | ||
| Crew | $234,884 | $234,884 |
| Crew Training | $27,312 | $27,312 |
| Hangar | $31,195 | $31,195 |
| Insurance | $4,790 | $4,790 |
| Jet Management | $48,000 | $48,000 |
| Miscellaneous Fixed | $10,017 | $10,017 |
| Total Fixed Costs | $356,199 | $356,199 |
| Total Annual Budget | $969,022 | $1,581,845 |
Purchasing plane aid moving around countries. You can also move to another country and get paid. Learn how to Get Paid to Move to Another Country | 15 Best Places in 2022.
Bottom line
So buying your first plane after making big bucks in the markets is just one puzzle piece. The costs of operating and maintaining the plane are another piece. You may go with outright ownership or fractional ownership. In both cases, decide wisely so that the costs don’t outweigh the benefits of buying in the first place.
Remember you mustn’t own a jet to live the good life. There is also an option of the charter. Yes, you can charter a plane to your location and take all the selfies you want to post on social media.
FAQs on How Much Does It Cost To Own A Private Plane in 2023
The least expensive, new private jet for sale is the Cirrus Vision Jet, with a sticker price of $2 million. However, used private jets can sell for as low as $350,000.
The team at TheWealthCircle thinks that leasing a private jet is better because of its limited liability. The pros and cons of buying or leasing are yours to consider and so our opinion should be your decision.
If you spend at least 200 hours or more on flights, then a private jet might be a good investment in saving time. Moreover, if the annual cost of flying commercially or frequent chartering exceeds the cost of owning a private jet, you should shell out some dough to purchase a private plane. In either of these cases, a private jet might be a good investment with a high return on time and comfort, not ROI.
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