How much does a private jet cost? 2021 Estimated Cost

Commercial air travel has become a laborious and unpleasant experience as a result of long lines at airports, delayed flights, and overcrowded aircraft. And because COVID-19 is still rampant, you might want to consider booking a flight with a smaller passenger count the next time you travel.

Private jet travel used to be a privilege enjoyed only by the world’s wealthiest individuals; however, as private jets have become more affordable in recent years, an increasing number of people are choosing to travel via private jet. But make no mistake about it; whether you choose to buy or charter a plane, the cost can easily run into the tens of millions of dollars.

Key takeaways

• The price of a brand-new private jet can range anywhere from three million to ninety million dollars.

• The price of chartering a private jet can range anywhere from $1,000 to $10,000 per hour depending on the size of the aircraft.

• If you are contemplating the purchase of a private jet, you need to take into account the costs of fuel, maintenance, and salaries for the crew.

• You might be able to finance the purchase of a private jet by taking out a personal loan, exploring your leasing options, or joining a private jet membership programme.

How much does it set you back to purchase your very own private jet?

There is a wide range of pricing points available for brand-new private jets, from $3 million to $90 million. Even though buying a used jet would save you money, these planes still cost millions of dollars. To put this into perspective, the price of a pre-owned Gulfstream G450 on the Gulfstream website is around $14.75 million. When you factor in all of the optional additions and customizations, the price can easily reach the hundreds of millions of dollars range.

It is not hard to understand why so few people choose private ownership given the costs involved. Only a small portion of the total cost of owning a private aircraft is represented by the purchase price of the jet itself. The expenditures of maintenance and repair are proportional to the size of the aircraft, but they normally range from half a million to four million dollars each year.

The price of a private jet is determined by factors such as the size of the aircraft, the capacity for passengers, and the range it can cover. As a result of this, jet owners have one of the highest costs associated with their hobby. Long-distance flights necessitate larger fuel tanks in aircraft, which results in increased fuel consumption. Take, as an illustration, the roughly 50,000-pound fuel capacity that the Bombardier Global 8000 possesses. The amount that must be spent on gasoline each year might range anywhere from $400,000 to $900,000 depending on how frequently the aircraft is used.

What kind of budget do you need to set out for a private jet charter?

Even while hiring a private aircraft is quite a bit more costly than going on a commercial flight, it is still a significantly more cost-effective option than purchasing your very own plane. Flights aboard private planes are often billed on an hourly basis. Prices change depending not just on the distance travelled but also on the size of the jet, the duration of the trip, and the number of passengers. When you charter a private jet, you may expect to pay anything from $1,000 to $10,000 per hour as a common fee. It is possible to spend more than $100,000 to rent a jet for the entire weekend.

If you don’t fly at least 150 hours per year, however, renting a plane is usually a better alternative than buying one because it allows you to avoid many of the yearly maintenance expenditures. Buying a plane also requires you to pay for the initial purchase price plus a deposit.

According to Justin Crabbe, CEO of the private jet charter business Jettly, “with on-demand charter, you don’t pay expenditures such as hangar fees, maintenance fees, crew salaries, insurance, depreciation, interest, and not to mention the cost of locking up cash in a multi-million dollar asset.” “The math makes it fairly evident that chartering is a significantly more cost-effective alternative to outright purchasing an aircraft if your annual flight hours are less than 100,”

If I wanted to book a seat on a private plane, how much would it cost me?

According to Crabbe, the typical capacity of a private jet for a “light” flight is roughly six passengers. In order to calculate the price of a seat, you must first determine the hourly rate of the aircraft, the length of the entire flight, and the total number of seats on board.

For instance, a six-seat plane that costs $5,000 an hour, or $15,000 for a voyage that lasts three hours, would cost around $2,500 for each seat individually.

This cost might be much higher or much lower depending on the company, but it illustrates the difference between flying on a private jet and travelling on a commercial flight. Depending on the company, this cost could be much higher or much lower. It’s possible that travellers who are more comfortable in first or business class won’t see much of a difference between using a private plane and flying commercially. However, passengers flying commercial airlines in economy may view this pricing as being prohibitively expensive. It is dependent upon the kind of flier that you are.

What exactly does it mean to be a member of a private jet card?

Memberships in private jet card programs are services that grant you access to and benefits aboard the aircraft operated by your service provider. Membership can be purchased at a variety of tiers and levels, depending on the company. A membership to Jettly’s Jet Card will set you back close to one thousand dollars every month.

“The jet card membership opens a secure designated trust account in the member’s name with monies placed by the member that can be used to charter aircraft anywhere in the world,” Crabbe explains. “The funds can be used to charter aircraft at any time, day or night.”

This could sound like a wonderful advantage for someone who fly relatively frequently. However, if a person only travels by air a few times a year, it’s possible that this won’t be worth the expenditure.

How do private jet applications work?

The process of using a private jet app is quite similar to that of using a standard flight booking app; after inputting your departure location, destination location, and travel dates, the app will match you with available private jet booking possibilities. You will most likely be required to make a login, however doing so will allow you to sign up for alerts and promotions. There are certain organisations that do not require membership, but if you do join, you may be eligible for additional savings.

You have the option of browsing by the kind of private jet you would want, the number of seats you would like on the aircraft, and the time of day you intend to fly. When you have made your choice, you can then add your credit card information and complete the purchase using the app.

How do empty leg transactions actually function, and what exactly are they?

Flights that are considered to be empty leg flights are those that depart a location without any passengers on board. Since the plane is designed to take off with or without people on board, anyone can book a seat on one of these flights. According to Crabbe, booking one of these jets can save you a significant amount of money—sometimes up to 75 percent less than the cost of a normal private jet rental.

There are several private jet firms and applications that give you the ability to look for aircraft with empty legs and sign up for notifications when one arrives at an airport in your area.

This enables you to book a private jet for a cost that is a fraction of what it would have been otherwise. However, you must possess a high degree of adaptability. For instance, you might find out about a flight with empty seats only twenty-four to forty-eight hours before it is scheduled to depart (although some flights are available a few days from when you search). You are going to be responsible for finding your own way back. Empty leg flights are exactly what they sound like: a single segment of a longer journey.

Can you afford a private jet?

It is essential to conduct a thorough investigation into the components that contribute to the total cost of a private jet in the event that you choose to either buy or charter one. Think ahead about the kinds of travels you want to take as well as the frequency with which you want to take them; longer journeys with a larger number of passengers will likely demand a more expensive plane than shorter trips that are taken less frequently. When calculating the total cost of a jet, it is important to remember to take into account additional expenses such as fuel, insurance, storage, and maintenance.

When determining whether or not you can afford a private jet, you should take the following into consideration:

• How many passengers are expected to fly: Is the plane you bought for you and a friend, or do you want to take it with your family when you go on vacation? The size of the plane you’ll need to search for will be determined by the total number of passengers on board the aircraft. When compared to a smaller plane that can only accommodate a few of passengers, a plane that needs to accommodate a larger number of passengers would likely have a higher price tag.

• The frequency with which you plan to use it: While some aircraft are designed for shorter flights, others are better suited for journeys of a greater distance. Take into consideration the times when you intend to use the plane. If you just plan on using it once every few months, you probably won’t want to fly the same kind of plane as someone who goes flying every single weekend.

• The destination that you wish to fly to: Are you currently located on the East Coast and planning a trip to the Bahamas? Are you currently located in California and planning a trip to the northern part of the Pacific Northwest? When travelling shorter distances, it is necessary to utilise a vessel that has a more compact fuel tank. If you are going to be travelling internationally or making a lot of stops, you should think about renting a plane that has a larger capacity for gasoline.

• Whether you’re purchasing a new or used item: It’s possible that the price of a brand-new plane will be significantly more than the price of a used jet. However, the price is also dependent on the type of plane and its passenger capacity. Older planes, on average, cost a great deal less than modern ones do; however, you should account for any additional costs associated with their upkeep, maintenance, and insurance.

• The total number of crew members who are present: Regardless of whether you opt to own your aircraft yourself or hire a charter service, you will still need to figure in the expense of hiring pilots and flight attendants. The publication Aviation Voice estimates that you will need to allot upwards of $200,000 annually to pay for a professional crew. You are able to find a crew for your jet by working with either an aviation management company or the company that is chartering your jet.

• The amount of upkeep that will be required of you: In addition to the expenditures of fuel and the salaries of the flight crew, you will also need to include normal maintenance costs, as well as any unforeseen maintenance charges, in your budget. It is possible for a windshield chip or a mechanical problem to cost tens of thousands of dollars to repair or replace, and the cost might be even greater for older vehicles. As with a vehicle, it is important to do routine preventative maintenance on a regular basis.

How to fund a private jet

If you do come to the conclusion that you want to buy a private jet, you will need to plan out how you intend to pay for it. There are very few people who are able to afford the total cost of a jet, so it is possible that you will be required to take out a loan.

Personal loan

You can get a personal loan from a financial institution like a bank or credit union to pay for the jet all at once, and then you can make the payments on the loan over a period of time. On the other hand, obtaining a personal loan for a private jet is significantly more challenging than obtaining one for a brand new automobile. Even the most affordable private jets can run into the millions of dollar range, and only a select group of lenders will agree to provide financing for such a large sum.

If you plan to approach a financial institution for a loan for a private jet, you should ensure that you have an excellent credit score as well as a stable financial history. You could also investigate the possibility of obtaining a secured personal loan, which would necessitate the placement of a valuable asset, such as your house, as collateral. If you are unable to repay the loan, the lender has the legal right to take possession of the asset used to secure the loan.

There are financial institutions that focus solely on providing loans for the purpose of financing private jets. These financial institutions include JetLoan Capital, JetLease Capital, and Global Jet Capital. The Aircraft Owners and Pilots Association also offers an online loan financing calculator to help estimate your monthly payments.

Leasing

If you’re not quite ready to purchase a private jet, consider leasing, which has many of the same benefits of owning a private jet. Leasing a private jet is similar to leasing a new car, with the option to sign a lease from several months to several years. Most aircraft companies allow you to choose between a few different types of leases:

• Wet lease: The lessor pays for the aircraft itself and at least one crewmember. Wet leases are a more expensive option because of the added cost of paying for a pilot or crewmember services.

• Dry lease: The lessor pays for the aircraft without the cost of a crew but is required to use their own crewmembers. This is a cheaper option if the lessor already has a pilot and crewmember they can hire for flights.

Leasing a private jet is also a great way to test out different aircraft before making the full investment in purchasing one. And because lessors don’t legally own the aircraft, they don’t have to deal with depreciation or reselling the plane if they decide to purchase a new one.

Private jet memberships

Purchasing a membership on a charter flight is still another option for those who like to travel via private jet but do not own their own aircraft. People pay for a single seat on an aeroplane rather than paying for the entire jet when they use these clubs, but it is still an extremely premium alternative for travel. For instance, in order to have access to shared flights, members of Wheels Up, a well-known jet charter firm, must pay an initial fee of between $3,000 and $30,000 and then an annual fee of between $2,500 and $15,000 thereafter. However, membership in these clubs does come with certain perks, such as complimentary passes for guests and special offers that apply to the whole family.

How to get your hands on a private jet.

There are a few different locations where you can look through available aircraft if you have made the decision to purchase a plane as opposed to chartering one and if you already know what kind of aircraft you are interested in purchasing:

• You have the ability to buy or sell aircrafts on AeroTrader.com. Prospective purchasers have the ability to search by aircraft size, location, manufacturing year, aircraft condition (new or used), and even price range.

The Controller gives you the ability to search for aeroplanes according to the state, manufacturer, and aircraft certification. You have the option of looking for numerous models at once rather than searching for one model at a time, providing you the ability to compare various choices in a single glance if that is something you would like to do.

You may conduct a comprehensive search for private jets in your region on several websites, including some that enable you browse for planes in your vicinity. You may have more success contacting individual owners directly through businesses or marketplaces because some sellers do not post their planes on all of the platforms where they sell them. On their websites, certain firms, like Gulfstream, also advertise pre-owned aircraft, so if you have a particular model in mind, you can look there.

The bare essentials

The acquisition of a private jet is a significant financial commitment that must not be treated flippantly. Even if you travel quite regularly for either business or pleasure, it will be many years before the cost of flying on a private aircraft is comparable to or lower than the cost of flying on a commercial airline. It is crucial to make sure that you can afford not only the fees that will be incurred immediately, but also the costs that will be incurred over the long run for things like gas, crewmembers, insurance, and repairs before you make the investment.

If you are planning to buy a private jet, you should consider applying for a personal loan from a reputable bank or investigating your possibilities with lenders who specialise in private aviation financing. You should shop around and receive quotations from a variety of lenders, just as you would with any other type of loan, to ensure that you are getting the best available price.