June 10, 2021
Costs to Consider When Buying a Private Jet
Owning a Personal Jet Comes with a Variety of Expenses
On its face, buying a private jet doesn’t seem terribly expensive, especially for businesses looking to optimize executive travel. Some used private jets have a reasonable purchase price, sometimes less than a million dollars, especially if they’re older or on the smaller side.
But private jet owners know that the expenses add up quickly. If your company is completing a cost-benefit analysis for purchasing a business jet for sale, be sure that you’re considering these expenses, and any others that come up in your research during your fact-finding process as you consider luxury private jets for sale.
Personal Jet Price
The cost of a personal jet varies greatly, with most private jet owners opting for a pre-owned aircraft to save money. Variants in the number of cycles, age, and whether the jet has undergone any updates in recent years are just a few reasons price is so different from plane-to-plane, even the same make and model.
It is widely accepted that companies and individuals seeking to buy a business jet should not do so unless they’ll be flying at least 150 to 200 hours per year. It is not a cost-effective purchase, otherwise.
Personal jet owners must pay for multiple types of insurance policies, including hull insurance and single limit liability insurance. Hull insurance is generally more costly than single limit liability.
Insurance costs can vary based on flight hours, age of the aircraft, and even jet size; in general, the larger the payload, the higher the insurance premium you’ll need to pay.
In total, anticipate insurance premiums to cost you tens of thousands of dollars per year. Contact a reputable aviation insurance provider for an estimate on your jet’s premiums.
Each time you fly in your private jet, anticipate paying fees directly to the airport, plus fees to fixed-base operations.
FBOs take care of your jet when you land, and often provide amenities like “snooze rooms” for pilots, meeting spaces, business centers, and lounges for a cost. Not all FBOs offer the same amenities, nor do they charge standardized prices for these services.
Airports often charge landing fees, which are used to maintain buildings and runways. The amount depends on the size and weight of your business jet, usually a maximum of a few hundred dollars. If you choose to refuel at the airport, they may waive the landing fee.
If you need to park your private jet at the airport for a length of time, you may also need to pay ramp fees. Again, these will vary by aircraft size, but also by how long your jet will need to remain parked.
Maintenance and Operating
If you own and operate a large private jet, you’ll have higher maintenance and operating expenses than a small or light jet.
Large jets necessitate hiring, paying, and training a crew, and tend to use more fuel and oil, which ups operating costs.
Many private jets for sale will require, upon purchase, APU allowance, subscription to a navigation chart service, avionics maintenance, and more, and these costs increase with hourly usage.
Most private jet owners also opt to purchase a maintenance plan, which keeps their aircraft in top condition and creates a paper trail of upkeep. Well-documented maintenance can often positively influence the resale value of a jet.
When it’s not flying, your private jet will need to be parked somewhere safe and protected. Private hangars can cost you tens of thousands of dollars, and more if they’re large.
If you wish to leave your jet in a hangar at a major airport, you can anticipate paying much more.
Cabin and Avionics Upgrades
Private aviation offers so many upgrades to private jets that you could, in theory, completely change every aspect of your jet after you purchase it. In some cases, upgrades are necessary; you may need to bring your avionics and sat nav up-to-date, especially if you plan to buy a used private jet for sale.
You can even upgrade the cabin management systems, entertainment options, and interior finishes. The cost of upgrades can vary year-by-year, depending on the project, and if you’re doing major updates, expect to budget hundreds of thousands of dollars for larger-sized business jets.
Finding a Luxury Private Jet for Sale
If your business isn’t deterred by the fixed and annual costs of private jet ownership, then your next step is determining the size of jet you need, as well as the amenities you expect to have on board.
Start the purchase process by contacting a reputable aircraft dealer, like those accredited by the International Aircraft Dealers Association (IADA). IADA Accredited Aircraft Dealers promise to uphold the highest ethical standards and work with the best interests of their clients in mind. Only three percent of all aircraft dealers in the world have earned IADA accreditation.
Contact an IADA Accredited Aircraft Dealer for more information on how they can help you find and purchase a private jet.