how much does it cost to build a jet

How Much Does It Cost To Build A Jet? How much does it cost to buy a private jet? Let’s review the private jet prices list. Long lines at airports, delayed flights and shrinking seats and legroom on planes have made commercial air travel an unpleasant chore. And while flying by private jet used to be a privilege reserved only for the ultra-rich, more people are taking private jets now because they’re becoming more accessible. But make no mistake: Buying or chartering a plane can still climb into the tens of millions of dollars.

Some key takeaways to consider before buying a private jet include:

  • New private jets can cost anywhere from $3 million to $90 million.
  • The cost to charter a private jet can be anywhere from $1,000 to $10,000 per hour.
  • If you’re considering purchasing a private jet, you’ll have to factor in maintenance, fuel and staff salary costs.
  • You may be able to fund a private jet purchase through personal loans, leasing options or private jet memberships.

private jet prices list

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how much does it cost to buy a private jet

The price for a brand-new private jet ranges from $3 million to $90 million. Though secondhand jets are cheaper, they still cost millions of dollars. For perspective, a pre-owned Gulfstream G650ER, the company’s flagship private jet, costs $33.5 million to $49 million on the Gulfstream website. With extras and customization, the price can soar to hundreds of millions of dollars.

Given the costs, it’s easy to see why so few opt for private ownership. The purchase price of a private jet represents only a fraction of the cost of owning one. Maintenance and repair costs depend on the size of the aircraft but typically range from $500,000 to $4 million per year.

The price of a private jet depends on its size, the number of passengers it can hold and the distance it can fly. Because of that, fuel is one of the highest costs for jet owners. Planes with larger fuel tanks for long-range flights require more fuel. For example, the Bombardier Global 8000 has a fuel capacity of nearly 50,000 pounds. Depending on how much the plane is flown, fuel costs can reach $400,000 to $900,000 per year.

How Much Does A Private Jet Cost? | Bankrate

The cost to charter a private jet

While renting a private jet is considerably more expensive than flying on a commercial flight, it is still much cheaper than buying your own jet. Flights on private jets are charged by the hour. Prices vary depending on the size of the jet, length of the flight and the number of people on board. The typical cost is between $1,000 and $10,000 per hour to charter a private jet. Renting a jet for an entire weekend can run $100,000 or more.

However, unless you spend at least 150 hours a year flying, renting is probably a better option than buying — that way, you avoid many of the yearly maintenance costs.

Can you afford a private jet?

Before you buy or charter a private jet, it’s important to evaluate the factors that influence the full price tag of a jet. Think ahead to the types of trips you want to take and the frequency at which you’ll take them; long trips with many people will likely require a more expensive plane than shorter, infrequent trips. When determining the overall cost of a jet, also make sure to factor in things like fuel, insurance, storage and maintenance.

How Much Does a Private Jet Cost? - Air Charter Service

Things to consider

When deciding whether or not you can afford a private jet, there are a few factors that you should keep in mind.

How many people will fly

Is your plane for you and a buddy or is it how you plan to travel with your family? The number of people on the aircraft will determine the size of the plane you’ll have to look for. The more people you need to fit into your plane, the costlier it could be compared to a smaller plane fit for a couple of people.

How often you will fly it

Some planes are good for quick getaways and others are made for longer trips. Take into consideration when you plan to use your plane. If you think you’ll use it every few months, you might fly a different type of aircraft than someone who flies every weekend.

Where you want to fly

Are you on the East Coast and hitting the Bahamas? Are you in California and wanting to head up to the Pacific Northwest? Shorter trips mean using an aircraft with a smaller fuel tank. If you’re heading overseas or on a trip with many stops, consider getting a plane with greater fuel capacity.

If you’re buying new or used

The cost of a brand-new plane might be higher than that of a used plane. However, the model and size of the plane also determine the cost. In general, older planes cost significantly less than newer ones, although keep in mind any additional maintenance, insurance or upkeep costs.

The number of staff members on board

You will also have to factor in the cost of hiring pilots and flight attendants, whether you’re buying or chartering your jet. According to Aviation Voice, you’ll have to budget upward of $200,000 per year for a skilled crew. You can find a crew through an aircraft management company or through the company chartering your jet.

How much maintenance you’ll need

In addition to fuel costs and flight crew salaries, you’ll need to budget for regular — and sometimes unexpected — maintenance expenses. A cracked windshield or a mechanical issue can cost tens of thousands of dollars, and that price may be higher for older models.  Minor maintenance should be performed regularly, just like with a vehicle.

How to finance a private jet

If you do decide to purchase a private jet, you’ll need to determine how you want to pay for it. Very few people can afford the cost of a jet in full, so our first recommendation is to get a personal loan.

Personal loan

With a personal loan, you can borrow money from a bank or credit union to pay for the jet upfront, then repay the loan over time. However, getting a personal loan for a private jet is much more difficult than getting one for a new car. Even the cheapest private jets can cost millions of dollars, and only select lenders will approve a loan for that much money.

If you approach a bank for a private jet loan, make sure you have a great credit score and a solid financial history. You can also look into getting a secured personal loan, which would require you to put down a valuable asset, such as your home. If you aren’t able to repay your loan, the lender would be able to legally seize your asset.

Some lenders cater specifically to loans for private jet financing, including 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.

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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

Another way to fly on a private jet without having to own one is to invest in a charter flight membership. With these clubs, people pay for a single seat on a plane rather than the entire jet, but it’s still a very pricey option. For example, Wheels Up, a popular jet charter company, charges members between $3,000 and $30,000 to join and $2,500 to $15,000 per year after that to get access to shared flights. Memberships in these clubs come with some advantages, though, including guest passes and discounted deals for an entire family.

Where to buy a private jet

If you’ve decided on owning a plane over chartering one and have figured out the type of plane you want, there are a few places you can browse through selections:

AeroTrader.com lets you buy or sell aircrafts. Potential buyers can browse by size, location, aircraft condition (new or used), manufacturing year and even price range.

Controller lets you search for planes by state, manufacturer and aircraft certification. If you’d like, you can search for multiple models at once rather than searching for one model at a time, giving you the option to compare different options at a glance.

While many websites let you browse for planes near you, you can also do a broad search of private jets in your area. Some sellers don’t list their planes on all websites, and you may find more luck reaching out to individual owners through businesses or marketplaces. If you have a specific model in mind, some companies like Gulfstream also advertise pre-owned aircraft on their websites.

I’m going to try to stick with my original five-part agenda—initial purchase price; maintenance and operating costs; insurance; parking; and upgrades/add-ons. But as we shall see, owning a business jet, doesn’t quite match up in all the categories. I’ll explain more on that later.

Let’s start with the easy one. I found that business jet prices range from $3 million to $90 million, though one source says that about 85 percent of business jet owners buy second-hand aircraft. As Steve Varsano founder of the luxury private aircraft company of The Jet Business, says, “If you’re not flying your airplane 150 to 200 hours a year, you really shouldn’t buy one. You should just rent one.”

Depending on your budget, age or size of the aircraft you need and more – the initial purchase price can vary tremendously. It’s also important to note that most owners switch jets every four to five years, much like car owners.

There’s also a significant variance among the many business jets out there so for this article, I decided to use the Gulfstream 450, more commonly known as the G450. With Honeywell’s Primus Epic cockpit, APU, weather radar, air and thermal management, navigation and radio and other available upgrades, you can see why this aircraft peaks my interest. Here’s an idea of what it costs to own a business jet.

Purchase Price

A new G450 can cost anywhere between $38 and $43 million brand new, depending on the upgrades you add at the time of purchase. On the other hand, a pre-owned model will typically cost you anywhere in the $14 million to $35 million range. A significant variance, depending on the flight hours, upgrades and features that are on the aircraft.

1. Maintenance & Operating Costs

With the Skyhawk all we had to worry about were fuel, oil, engine reserves and landing fees. But now we have crew salaries and benefits including a flight attendant. And once you’re flying with an aircraft of this size, a lot of other fixed and variable costs come into play such as APU allowance, navigation chart service, computer maintenance and catering, to mention just a few. Let’s not get bogged down in details and just say that our total cost of ownership per year, for a Gulfstream G450 is roughly $4 million. This is based on 423 hours of usage per year. This does not include insurance or parking which I’ve broken out separately to go along with my Cessna 172 analysis.

2. Insurance(s)

Let’s figure hull insurance at $34,520 and “single limit liability” at $12,500 for a rounded total of $47,000. However, it’s important to note that insurance can increase based on several factors not limited to average flight hours, age of the aircraft and more. And, as the jet gets bigger and carry a higher payload, you can almost count on a larger premium.

3. Hangar vs tie down

Well, clearly you’re not going to leave our multi-million dollar investment out in the rain — or, here in Arizona, in the sun—so we can count on a hangar fee of around $81,000 per year. If you want to park your plane at a large, international airport, such as Los Angeles International Airport (LAX), you may pay closer to $160,000 a year or $12,000 a month.

4. Upgrades/Add-ons

The amount of upgrades offered in the aerospace industry are almost limitless with options to change out almost every product on your plane. Considering Honeywell’s extensive portfolio of next-generation technology, we can add satellite communications, in-flight connectivity solutions such as JetWave, a cabin management and entertainment system like Honeywell Ovation Select cabin management system, the SmartView synthetic vision system and more.

And although they’re not ‘aesthetic’ upgrades that you and your passengers will get excited about, it’s important to count the equipment you’ll need to cover the ADS-B Out, FANS 1/A and other mandate requirements that are coming up before the Dec. 31, 2019 deadline.

For the Skyhawk we allowed $5,000/ year. But for our Gulfstream and other business aircraft alike, Andre Fodor of Avbuyer.com suggests it could be different every year depending on how you fly. After all, we haven’t covered the cost of paint, furnishing your aircraft and other cabin-related upgrades that will make our transatlantic flights that much more comfortable. To be conservative, let’s budget $100,000 to $500,000 a year to cover upgrades.

All told, you can figure an initial purchase price from $14 to 43 million and annual costs of $4,628,000.

As you can see, there are several options for those fortunate enough to purchase an aircraft of this caliber. Whether you purchase new or used is clearly a matter of personal preference and budgetary constraints. For more information on owning an aircraft please visit faa.gov.

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