The costs of owning a business jet should be given as much, if not more, consideration as the purchase price. The expense associated with maintaining, storing, and operating a business jet can be significant, and seemingly complex to a first-time buyer.
Private jet owners who do not gain at least a basic understanding of how these costs are calculated, and which costs are necessary and which are optional, will pay significantly more than jet owners who take the time to educate themselves. Business jet ownership costs are broken into two separate categories – fixed costs, and variable costs.
Fixed costs are items calculated monthly or annually and include pilot salaries and training, aircraft manager, hangar, and insurance. Depending on the make and model, fixed costs can be anywhere from $50,000 per year for a smaller jet like the Cessna Citation Mustang, to over $500,000 per year for a larger long-range jet such as a Gulfstream G550 or Bombardier Global 6000.
Variable cost is the expense associated with the operation of the jet and is calculated by the hour. Variable costs include items such as fuel, maintenance, inspections, engine programs, crew hotels and meals, landing fees, parking, etc. These costs typically range from $1,000 per hour on a small jet like an Embraer Phenom 100 to over $10,000 per hour on larger aircraft such as a Global 5000 or Gulfstream G650ER. High-profile celebrities, top-class business executives, politicians and touring musicians are the ones who can afford private charters.
Private jet prices are reasonable - considering the uninterrupted access to first-class facilities. Compared to booking seats via commercial aviation companies, the services of a private aircraft operators like EFI appears to be affordable only for the rich and famous. But, are they really? We think not.
The Main Cost Factors
Here are two factors that go into costing private jet prices: Aircraft range and size. The range, or the distance that an aircraft can fly during take-off until landing, is a major factor in the cost of private jet rental. This is due to the amount of fuel necessary during the entire operation. Usually, a bigger aircraft (with a higher passenger capacity) can reach a higher range. And the aircraft’s higher range, the costlier the rental.
Another factor is the aircraft size. Because it offers more room, a bigger aircraft is preferable for more convenience. Usually, a bigger aircraft (with a higher passenger capacity) amounts to a higher cost. The commonly available private aircrafts are: Light aircraft (6-8 passenger capacity), medium aircraft (7-9 passenger capacity), large, or jumbo aircraft (10-15 passenger capacity), helicopter (5 passenger capacity), ultra long range aircraft (15-17 passenger capacity).
Average Cost per Flight Hour – the total flight hours is the length of time an aircraft operates – from takeoff to landing.
Private jet operators charge rentals based on their per-flight hour rates. Your "meter" starts when the aircraft starts running. Depending on what you intend to do or where you are flying off to, you might be surprised that you can actually afford a private jet rental.