Traveling via private jet is not only comfortable but also convenient, especially for high profile individuals like celebrities, businessmen, athletes, and basically millionaires. For this reason, many ultra-rich individuals choose to buy their own private jets to enjoy luxury flying. Having a private jet makes everything hassle-free; less time spent in long lines and a lot more legroom.
Now that private jets are more accessible, some may think, how much does it cost to buy a private jet? If you have the money, the cost of buying a jet may be worth it, especially if you travel a lot. However, because private jet chartering is also an option, you need to weigh the decision and find out where you'll save money long term.
So here we're going to look into how much a private jet costs, whether you plan on booking a private jet charter (one-off flight) or buying the whole damn plane. Read on to discover the costs involved with flying on a private jet and learn about the perks of owning one.
The Real Cost of Buying a Private Jet
The cost of private jets depends on the model, age, usage, capacity or range, and custom fit materials. There are two types of ownership: full and fractional ownership. Depending on your budget and requirements, you can either share the cost of buying a jet or take full responsibility for maintaining the private jet.
According to Bankrate, the range of buying a brand-new private jet is between $3 million to $90 million. Just like cars, used jets are cheaper compared to brand-new models. To give you an idea, the brand new Gulfstream G450 costs $40 million, while pre-owned models can cost around $12 million to $15 million, depending on the age and condition.
There are also smaller jets with limited seating capacity, which cost less compared to the Gulfstream G450. The Embraer Phenom 300 comes with a price tag of less than $10 million for the initial outlay and has a variable annual cost of less than a million dollars.
Aside from the cost of buying a private jet, you would also shoulder the cost of maintenance, crew salaries, hangar, insurance, training, fuel, and more. The monthly periodic charges are also high, considering a private jet is an aircraft.
This is where fractional ownership comes in if you wish to share the cost of maintenance, fuel, and the monthly periodic charges. With fractional ownership, the overall expenses are less because you are sharing the private jet with another individual.
Financing a Private Jet
Aside from cold cash, buyers can also choose to get a loan to buy a jet. With a personal loan, banks can pay for the private jet upfront then you will need to repay the loan with interest over a fixed term. However, note that some banks require a deposit or collateral before approving the loan, especially with the huge money involved in the transaction.
Private Jet Charter Cost
If buying a private jet is out of the question, you can do private jet charters to anywhere you need to go for both business and leisure.
For business, private jet hire allows you to fulfill strict schedules and complete multiple meetings in different cities in one day if need be. Not only that, they allow for a comfortable and sophisticated ride.
For leisure purposes, private jets allow you and your friends/family to travel in style, with both comfort and privacy. Whether you're going on a short weekend getaway or a long holiday overseas, going by private jet means you get access to private terminals, meaning no stressful queues.
The cost of a private jet charter varies depending on the company you choose and where you are going. According to Forbes, private jets can sometimes work out to be a better deal than flying commercial if you fly at least 150 hours a year.
In some cases you can save money on flights by joining a private jet club which start at around $1,000 per month plus charter fees. You can also get 30% to 75% discount off the regular charter price by grabbing a seat on an empty leg flight (when the jet needs to fly to another airport for the next planned route).
Typically, a private jet company like NetJets charges per hour. This company for example, offers a JetCard which covers approximately 25-30 hours per year and 3 types of flights: Light Jets, Mid Jets and Heavy Jets.
25 hours of flight on a light jet will cost $120,000 USD to $150,000 USD. The same amount of time on a mid jet will cost $170,000 USD to $200,000 USD and a heavy jet will cost $275,000 to $375,000.
Bottom Line
Buying a private jet may be the perfect solution to flying comfortably and avoiding the crowds on a regular plane. If you have the money to spare, roughly $10 million to $70 million, you can find a used or brand-new private jet with decent range.
Alternatively, you can save a bit of money by sharing the jet with someone else, also known as fractional ownership. An alternative to both of these options is to fly with private jet charters, which can cost as low as $4,800 USD per hour.
