When the ultimate luxury is required for traveling then a private jet is the only way to go. For those celebrities, movie stars, and wealthy families who wish to travel the simplicity of stepping out of their vehicle and walking straight up the steps to their waiting jet must be absolute bliss. The question is though, just how much are private jets to purchase?
Small, 6 seat private jets can cost as little as $400,000 – $500,000 for a used model that is several decades old. New private jets like the Cirrus G2+ can be purchased for as little as $3M and go all the way up to a Boeing 747-8 Business Jet costing well over $100M and able to carry over 100 passengers.
As with any aircraft, there are so many models to choose from and a vast used airplane market makes finding the right airplane for your budget a doddle, just remember the bigger the airplane, the more it is going to cost.
Here is the typical pricing of 15 of the world’s most popular private jets:
| Airplane Model | # of Seats | Price New $USD | Price Used $USD |
|---|---|---|---|
| Eclipse 500 | 2 Crew 4 Pax | Production Ended 2008 | 1.2M – 1.8M |
| Cirrus Vision G2+ | 2 Crew 5 Pax | 3M | 1.3M – 2.5M |
| Hawker 800A | 2 Crew 9 Pax | Production Ended 2013 | 1.2M – 2.5M |
| Cessna Citation Mustang | 2 Crew 4 Pax | Production Ended 2017 | 1.8M – 2.5M |
| Embraer Phenom 100 | 2 Crew 4 Pax | 5M | 1.5M – 3M |
| HondaJet HA-24 | 2 Crew 4 Pax | 5M | 2.5M – 4M |
| Pilatus PC-24 | 2 Crew 8 Pax | 11M | 5M – 9M |
| Bombardier Learjet | 2 Crew 7/9 Pax | 13M | 450,000 – 10M |
| Embraer Legacy 450 | 2 Crew 7/9 Pax | 15M | 9M – 13M |
| Gulfstream G280 | 2 Crew 10 Pax | 25M | 15M – 22M |
| Cessna Citation | 2 Crew 7/12 Pax | 7M – 27M | 500,000 – 25M |
| Dassault Falcon | 2 Crew 10 Pax | 41M | 1.5M – 35M |
| Bombardier Global Express | 2 Crew 8/19 Pax | 51M | 10M – 35M |
| Gulfstream G650 | 2 Crew 8/19 Pax | 66M | 40M – 60M |
| Boeing Business Jet Max7 | 2 Crew 25/50 Pax | 92M | 50M – 85M |
What Effects The Cost of Buying a Private Jet?
The older private jets with analog gauges and minimal automation will command the lowest price tags, but modern jets with state-of-the-art avionics, engines, and systems can cost tens of millions of dollars. Used jet price tags are based on the condition and time remaining on its components.
When looking to purchase a new private jet there will be many factors that dictate the final selection. These factors can be things like:
- No. of passenger seats
- Cargo Space
- Endurance
- Initial purchase cost
- Hourly running cost
- Insurance cost
- Power-By-The-Hour maintenance programs
For those of you that may be looking for more jet for your budget then a used jet can allow you to obtain considerably more aircraft for the same amount as a new aircraft.
When selecting a used private jet it is highly advisable to go through a reputable and experienced jet broker. All aircraft have many components that have a life limit to them which can fall under a calendar life limit or an hours used limit.
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Depending on how many hours are left of certain components can really affect the price of an aircraft. A great deal may not seem so great when the engine/s has to go for a complete overhaul only a year after purchase! Overhauled engines can start at $500,000 each and climb rapidly!
Most sales will list the hours remaining on the major cost items to allow the prospective buyers the ability to see how much life is left before that expense is incurred.
Typical Sales listings will include details as follows:-
Key:
TTSN – Total Time Since New
CSN – Cycles Since New
MPI – Major Periodic Inspection
AIRFRAME
Total Hours: 14,949.8
Total Cycles: 11,600
C of A Date: November 29, 1978
Base: New Century, KS
Regulation: FAR Part 91
ENGINES
Honeywell TFE-731-5AR w/Thrust Reversers
SN P98138 SNP98161
TTSN 6020 – Remaining 4521.4
CSN 5485 – Remaining 3140
MPI 1743.4 – Remaining 439.7
APU
SUNDSTRAND T62-T40CSN 795015
TSN 4993.3
CSN 11835
By looking at these numbers the buyer, along with their broker and maintenance technician can see if the listing price is fair compared to how much time is left before heavy maintenance will be required.
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How Much Does it Cost to Own a Private Jet?
In addition to purchasing a private jet additional costs need to be budgeted for crew, fuel, maintenance, hangarage, insurance, and landing fees. Most aircraft run on a cost per hour where these costs are broken down based on the number of hours flown per year. 200, 500, and 1000 hours per year are common.
Although the initial purchase cost of a private jet may seem very high, what catches out many people is the annual operating cost of the aircraft once it has been purchased. No matter how many times the aircraft is flown there will be some costs associated with it, even if it sits for most of the year.
The more it is flown, the more the hourly operating cost will be reduced, but the larger and newer the jet, the higher its operating costs will be.
For Example:
Crew
Depending on the aircraft type it may be flown by the owner once they have passed all of the pilot certificates and type ratings or 1, 2, or more pilots may be required. Professional jet pilots can easily cost between $80,000 – $200,000 per pilot for an annual salary.
Fuel
Even a small jet like the Embraer Phenom 100 has a range of around 1,100NM. On a 1,000NM flight with 4 passengers, baggage, and a pilot it will burn around 280 gallons of jet fuel. At today’s average Jet A cost of around $3.30/gallon that flight will cost $925 in fuel.
Increase the jet to a Gulfstream G650 and that same trip will cost $2,970 just in fuel!
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Maintenance
Older, smaller jets can be serviced just like a regular private airplane by a certified aircraft mechanic at a local airport, service center, or home hanger, however, they may require more maintenance due to their age.
As the jets become larger and more modern the maintenance will have to be completed at authorized service centers with appropriately sized hangers to accommodate the size of the jet.
There are numerous maintenance programs available for aircraft today that are based on the ‘Power-By-The-Hour’ methodology. The predicted hours flown for the year will be set and then a maintenance contract for certain components or the entire aircraft will be undertaken to ensure the best possible value to the customer.
For the Embraer Phenom 100, those maintenance costs based on 500 hours flown per year can result in a cost of around $70/hour each time it is flown.
For the G650 those costs can be up to $1800/flight hour, just for maintenance.
Hangarage
The bigger the jet, the bigger the space required to park it or store it. The small jets can easily fit in a small hanger found at most regional airports and take off from even the smallest runways costing only several hundred dollars in rent per month.
When the jet becomes considerably larger the owner will have to look for suitable hangarage at airports with runways long enough to accommodate the airplane. Hangers to house large private jets can be built or purchased for several million dollars or be rented for several thousand per month.
Insurance
Typical insurance rates for a private jet are based on roughly 14% of the aircraft’s hull value. A $5m jet will look to cost the owner around $15,000 per year.
Layover Fees
When flying to a location, unless it is for business, the owners will usually be staying for a period of time. During that time the owners are faced with two options:-
- Send the jet back to home base and return for their pickup, or
- Park the jet and have it wait
Either way incurs costs and depending on the distance back to the home base the choice may be simple. However, if the jet is to wait then there will be costs associated with parking it and having it readied for the owner’s return flight.
The most common costs to wait are:
- Crew accommodation and daily diems
- Airport Parking Fees
- Airport Landing Fees
- Servicing Fees (Food, Alcohol, Water, Septic)
If the monthly ownership costs and the initial purchase cost of a private jet are just out of reach then there are other options available that can provide all the benefits of private jet travel but without the ownership hassles.
Alternative Options To Owning a Private Jet
To allow the ownership of a private jet to return on the investment most owners are advised only to buy if they plan to use the airplane for at least 100 hours each year for a 4-6 year period, depending on the aircraft.
For those who do not wish to fly that much then one of the following options may be better suited:
Chartering
Chartering a private jet is just like booking a taxi. You call to reserve an aircraft and crew to take you from point A to point B on a set date. That flight is then calculated based on the routing, distance, and airports then invoiced to the customer.
This is by far the best am most popular option for those who only wish to travel a few times per year.
Fractional Ownership
An owner can look at purchasing a 1/16th or fractions of that for an aircraft. This co-ownership will allow the buyer an allotted amount of flight hours per year based on a multi-year contract upon which they will then pay an hourly fee for every hour flown.
There are many of these programs around with all sizes of private jet available. Once brought in you are locked to that size of jet for the duration of the contract.
Leasing
This is a way to block-book a jet for a set amount of time. Most leases will include the crew, hangarage, services, etc with a levy based on the latest fuel prices. For owners who know they will be requiring a set amount of hours to be flown each year a lease agreement could be the most cost-effective.
Memberships
These are a hybrid of all the options mentioned above but give the purchaser the opportunity to not be locked into a single type of aircraft. Memberships will allow the purchaser to use any of the fleet, whenever they wish to book, to go anywhere in the world.
Many of the large memberships have aircraft available all over the globe so you can find the best deals to suit your journey.
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