Should You Buy or Hire a Private Jet?
Even with the plummeting prices of private jets, you might be among the US firms re-evaluating travel expenses and whether or not it’s smarter to buy or hire a private jet. The short answer: You’d have to fly more than 400 hours a year, or eight hours a week, to make it worth buying versus chartering private jets. According to a recent report in The South China Morning Post, many among the business elite are letting go of the private jets they owned or their plans to purchase one, in favor of hiring private jets instead. To put it simply, buying flight hours–rather than the whole plane–saves money.
To Buy or Hire a Private Jet: The True Costs
To make owning a private business jet worth the fixed costs over deciding to hire a private jet each trip, you would have to be a very frequent flyer–at least an entire day in the air every week. Let’s do the math, and start with the purchase price of one of the most popular executive business jets, the single-engine, turbo-prop Pilatus PC12: $4.9 million new. (Source: Flying Magazine). Besides operating costs (fuel, maintenance, labour, parts and reserve), which depend on travel distance and fuel consumed, there are several other expenses: • Pilot and staff salaries • Training • Hull insurance • Liability insurance • Hangar/office
Depreciation values of new private business jets
Like a used car, private jets also depreciate in value over time. For example, that Pilatus PC12 you just bought is apt to run for about half its price tag in about eight years. However, as the market for private jets is cyclical, devaluation rates can change. Some newer jets may keep their value for a few years, but then drop suddenly.
How much does it cost to rent a private jet?
There are always heaps of factors to consider when answering the question of how much it costs to rent a private jet: the destination, the aircraft, the schedule, and how far in advance you’ve booked. But here are estimates for several popular US routes: And here’s a guide to what it costs you per hour, because when you hire a private jet you really only pay for your time in the air. In addition to spending less, when you hire a private jet, your team also lets go of all the headaches associated with maintaining aircraft, and there’s value to that, too. Your company might also want to consider a jet card for fixed rate pricing of private jets. Read our page How Much Does a Private Jet Charter Cost? Stratos Jets is one of the few jet charter brokers certified by ARGUS, which bases its charter broker ratings on the highest safety standards. Stratos has access to a selection of more than 3,500 pre-screened small, medium and large private jets worldwide.