Blame it on the increasing rush at the commercial airports or the unavailability of flights at the last moment, the fact remains the same that an increasing number of people are flying by private jets to save time and enjoy the unparalleled comfort. The question many people face is, whether it is logical to own a private jet or would it be more sensible to rent one. The answer to the question depends on a number of dynamics, such as the frequency of flights, the value of time, and various other factors. To answer the question better and help you make the right decision, this post weighs both the options.
The cost of a private jet varies between $3 million to $90 million, depending on factors such as seating capacity, maximum flying range, amenities, and level of comfort. Buying a preowned aircraft is more economical as compared to buying a new one, but may cost more in terms of upkeep. Small sized private jets, such as the Super King Air Turboprop, cost in the range of $4 million to $7.5 million. Bigger planes that can carry more than 50 people cost in upwards of $50 million.
Though cost may not be a concern for those who prefer travelling by private jets, it’s advisable to do a cost-benefit analysis and compare the cost of owning a private jet to renting one. While the cost of hiring a private jet is also notably higher than first-class fares, it is certainly a lot more economical than buying and maintaining a jet. The hiring cost varies with the size of the aircraft. For instance, the approximate cost per flight hour is $2400-$2700/hr. for light-cabin jets (1-7 passengers), $3400-$3700/hr. for mid-size jets (1-8 seats), $3900-$4500/hr. for super mid-size jets (1-9 passengers), and $5000-$12000/hr. for large jets (1-16 passengers).
Cost Benefit Analysis
If you buy a $10 million private jet, it depreciates to a residual value of approximately 20 percent in 8 years. The average annual depreciation is 10 percent, amounting to $1 million every year. The cost of annual maintenance is around $200,000 and a non-scheduled maintenance costs approximately $50,000. The total cost of annual ownership comes out to be roughly $1,250,000, which is equivalent to nearly 400 hours of flying, if we consider $3000 as the average hourly private charter rate. The calculation shows that if the total number of flying hours exceeds 400 hours, owning a plane is the more beneficial option than leasing.
Need an Expert’s Advice?
Deciding whether to lease or buy a private jet can be confusing, and that’s when you need an expert to help you make the right decision. If you too are unsure about which way to go, you can rely on our aviation consulting services. Horizon Air Group not only helps you get the best prices on all types private aircrafts, but can also provide expert guidance on all aspects of leasing. Let us know your requirements and rest assured the job is in safe, competent hands. To learn more about how we can help, give us a call at (877) 720-2770 or write to us at firstname.lastname@example.org.