The first question you should ask yourself before buying a private jet is why. Why do you want to own a personal jet? At first it may seem that this is the best way to travel, but you have no idea what is behind the luxurious curtain. Of course, this does not mean that the dream of an airplane should remain unrealizable. But if you familiarize yourself with all the reasons described in this article, and still dream of your own plane, then go and do it. However, if the worm of doubt creeps in the very first paragraphs, then know that this chartering a private jet is much easier and cheaper.
To begin, let's analyze your answer to the question of why you want to buy a private jet. Apart from the fact that you need the privilege to have luxury, is there really a need and a need for it? The initial purpose of buying any vehicle is transportation directly, the ability to deliver from point A to point B. Therefore, if you do not have an urgent need to move between distant points of the planet as soon as possible, then the desire to have a business jet is probably contrived.
The simplest solution in this case is to rent the plane when you are not using it. But can you trust those who will charter a jet? These people can damage natural leather upholstery or spill a drink on a luxurious carpet and leave stains. Are you ready to deal with such consequences? Therefore, if you do not often have to travel long distances, then your own plane will not become a necessity. There are also other ways to plunge into luxury without problem consequences. Keep reading and find out.
The highest paid movie stars, politicians and Formula 1 racers do not buy jets; even taking into account the fact that their way of life and sphere of activity imply constant movements, the lease of the aircraft remains the best way out. And the point is not that they cannot afford such expenses - they can, they just understand that the purchase will cost them much more than the direct cost of the ship. We discuss the costs in the following paragraphs.
As mentioned earlier, the purchase of a private jet will cost you more than you spend directly on the purchase. There are other expenses that will fall on your shoulders. And the main cost item is a luxury tax, officially extended to citizens of some countries. France, the United States, Australia, Mexico or some other countries impose a high tax on the possession of luxury goods to their wealthy citizens. For other countries it is just a matter of time. The tax rate on luxury varies in different countries, and, as a rule, is 5-30% of the value of the luxury item itself.
To paint a picture, imagine that by buying a used Gulfstream G280 jet (2014) for $ 15 million, you have to pay an additional $ 1.5 million in 10 percent tax.
In addition, some countries, such as Italy, apply a tax on luxury even to passengers of such aircraft. So, if you fly from New York to Rome in a private jet, you will have to pay an additional € 200 as a tax. The same amount will have to pay for the return flight.
In addition to the obligatory tax, another necessary item of expenditure is insurance. Saving on insurance can be left without anything at all. Especially when it comes to luxury items such as a private jet. Insuring a plane is more important than issuing an insurance policy for any other vehicle. It may seem that the flight has less risk than driving a sports car, since the rules of flight are an order of magnitude more stringent than the rules of the road. However, no rules and requirements can insure against the risk of damage.
As with any vehicle, components and parts of the aircraft can break and become unusable. Insurance will cover unexpected expenses for which you can not be held responsible. In addition, like any transport, the aircraft can get into an accident. Aviation accidents are more risky than other movements, not only in terms of passenger safety, but also in terms of physical damage.
How much is insurance? On average, insurance companies charge about 0.3% of the hull value. Thus, for a jet worth 10 million dollars, the annual insurance will be $ 30,000.
Maintenance costs are very high.
Expensive equipment needs exclusive maintenance. And, unfortunately, exclusive service implies its high cost. But you have no other options. You need to keep your business jet in top shape. You do not want to risk your precious life by flying on a faulty plane, do you?
Therefore it is necessary to adhere strictly to the maintenance schedule. And this question is not only your personal safety, but also the lives of other people. That is why the deviation from the schedule of repairs and maintenance entails the possibility of losing the flight license. And what good is a plane if it can't fly?
Even if you do not use the aircraft very often or do not use it at all, some parts still need to be replaced. Yes it is. Some of them need to be changed quarterly. In addition, you need a service based on the hourly flight schedule. This means that expenses are waiting for you as long as you have a private jet.
On average, private jet owners spend at least $ 100,000 a year just to cover maintenance costs. This does not include the restoration of parts and additional equipment. This is something that can not be put aside. Otherwise, you risk your license, or, even worse, your own life.
Commanders of private liners earn about $ 200,000 per year, subject to scheduled flights and only within one country. If you are looking for a pilot who will control the aircraft at any time and at any distance, you should allocate a budget of $ 300,000 per year. And if you prefer to have on board a flight crew capable of satisfying any need, you will have to pay another $ 50,000 in expenses.
To own a private jet do not need a driver's license. But as soon as you are ready to fly, paperwork will begin to boil here. The captain and navigator are not the only people who need a license. As mentioned earlier, a business jet must also have a flight clearance. This is a security certificate, but that's not all. First, you need the credentials of the airport where the vessel will be based and repaired. If you are thinking of leaving the country, this also requires permission. And insurance. In addition to this, aircraft registration is required.
Without this information, your dream of comfortable flights can turn into a bureaucratic nightmare in a matter of minutes. Without them, you are waiting for huge fines, or even the confiscation of the liner.
So, you learned about the cost of owning a private jet in addition to the direct cost of buying it. You got an idea of ??how much you will have to spend per year just to keep the ship safe and sound? Now let's draw a more specific picture: how much will you get on a plane flight, which you own?
The biggest cost of operating the aircraft is fuel. Of course, its consumption depends on the type of aircraft that you want to buy. The smaller and lighter the aircraft, the less fuel it will burn. For example, an 8-seater Cessna Citation X liner consumes about 1,400 liters of fuel per flight hour, which means that you will only have to spend about $ 2,000 per hour on fuel. An even more compact four-seater Cirrus Vision SF50 will cost $ 700 per flight hour. Now let's compare these costs with the cost of a ticket for a regular flight of a commercial airline. A first class ticket from New York to Washington will cost about $ 400. It is almost two times cheaper than flying the smallest and less luxurious aircraft.
Not using a plane doesn't mean paying for it.
Earlier it was mentioned that the jet is not designed to stand in the hangar. The plane must fly. And this is one of the reasons. If you think that idle time will be cheaper, then you are mistaken. For example, you already know that some parts need to be changed on a regular basis depending on the number of flight hours. So, in the sky or on the ground, a private jet is very expensive.
Even before the need for repairs arises, the first thing you, as the owner, need to decide is where you plan to leave your aircraft. If you do not own a huge garage with direct access to the runway, then you need to rent a place in the hangar of the airport. Some air harbors practice parking in the open air. It is much cheaper than a public or private hangar. But you think that this is a wise decision, to leave a luxury liner under the influence of extreme weather conditions without proper protection?
We have already discussed how difficult a deal to sell a used private jet can be. And its cost, most likely, will fall in comparison with the purchase price. Therefore, you should know that a private jet is not an asset, and buying it is not an investment.
You, probably, somewhere read about this kind of investment. But understand correctly: investment in aviation implies buying an old ship, restoring it and bringing it to a more valuable asset. Then you can either resell it, or replenish your collection, or arrange commercial flights. This is an investment. But buying a private plane to fly around the world from time to time, and then sell it as soon as you get tired of it - this is not an investment. You will definitely lose money. Even if you manage to sell it more expensive than you bought, it will not cover the costs of operation and maintenance.