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.