The Costs Involved In Buying A Private Jet

Buying a private jet could prove to be an expensive affair. There are many different costs involved in it and at the end of the day if your business needs demand for a jet, the profits should justify the costs of maintaining a private jet.

Wages of the Pilot and crew

It is true that airline industry is not exactly swelling and some pilots and airplane crew are out of jobs. But to hire them, you still need to give good wages. If you need a pilot and crew who are professional and are good at taking the stress involved in frequent flights, you might have to set aside a good amount of money.

Insurance coverage

More expensive your vehicle more is the cost of insurance coverage. For jets, the monthly premium could work out to be massive. Since the risk involved in private jets is higher than the commercial planes, the premium could be greater too.

Actual Jet Charges

Buying your own private jet could incur a huge up front charge. Depending on whether it is 4 - 8 seater or a luxury model, the cost might vary between 1 million dollars to 50 million dollars. You can get it for lesser cost if it is not a brand new model. However, the used jets might not really suit your requirements. So it is a trade off. In addition, your flying distance will determine what jets you will need. Light jets costing up to 8 million dollars are good enough to carry up to 8 passengers across 2000 miles. Mid-size executive class jets for up to 9 passengers and 3000 miles could cost between 9 - 16 million dollars. The larger executive jets belonging to Cessna, Gulfstream or Dassault Falcon carrying up to 12 passengers across 4000 miles might cost 45 million dollars.

Fuel Charges

With increasing fuel prices, you might as well start worrying about the highly expensive aviation fuel that your jets need.

Parking

A private jet provides a lot of flexibility because you can enjoy your own executive lounges at airports, have your own security check posts and parking spots on the airports. However, all of these cost money and must be included in your own private jet expenses when you buy it.

Miscellaneous Overhead

Your private jet might need a whole lot of other expenses that usually go unnoticed but could be a major drain on your purses. You will need to pay take off and landing fees at airports. Periodic mandated overhauls are absolutely critical for the jets. Licensing fees, storage and flight mechanic costs are also required. You will need to pay for regular checks on the condition and defects, if any in the jet. Such services could prove very expensive on an ongoing basis but are mandatory for the safety of the passengers and the crew.

Federal Regulations

There are many airports where you need a jet compliant with Stage 3 federal aviation regulations to land. Converting your private jet to comply with the rules and regulations will mean an expenditure of thousands of dollars. The repair times involved could also hamper your business for a long time.