Should I buy or hire a private jet?
So your business competitor has a private jet? Maybe you are planning to travel a lot next year? Whatever the case, there are pros and cons of buying your own private jet. But most importantly, in order to make the right long term decision, it is important to account for different variables; especially the range of your business or travel requirements and the projected hours you will be in the air on an annual basis.
There is no doubt that owning a private jet is an exciting idea, but you need to know that there are strict maintenance schedules that apply, training that needs to be handed out to the pilots, you actually need to find the pilots (and pay them), and insurance and hangerage costs, just to name a few. And most importantly, you need to buy the airplane, a cost that can go as high as 15 million dollars for a new average size jet, although there are much cheaper options when buying used ones.
But let’s focus on how much you will use the jet, arguably the most important variable to justify the investment. Normally you will need to fly between 200 and 300 hours a year to make owning an aircraft more cost-effective than actually chartering one. This is explained because when you charter an aircraft, the owner of that jet and the company that operates it is in a way “funding” your flight.
How? Well, the fixed costs mentioned before; management fees, pilot salaries, insurances and maintenance have all been paid for, including the aircraft acquisition and depreciation. So you are only paying the fees of fuel, handling, airport and a margin for the owner of the aircraft and the company that operates the charter.
Furthermore, there’s another catch. 4 weeks of schedule maintenance a year is the standard in this industry; a month worth time were your plane will be grounded. And jets also suffer unexpected malfunctions and will also need maintenance. So in the end it will be almost a must to charter other aircraft to be able to meet your travel requirements. Owning one private jet might not be enough…
In conclusion, from a financial standpoint, buying a private jet will, in most cases, be more ineffective that chartering one. But if your decision is non-financial all you need to do is remember the long checklist for all the variables that need to be accounted for and enjoy your exclusive and luxurious private aircraft.
Get an instant quote for a private flight at monarchairgroup.com.
Article written by Felipe Reisch, PR Manager for Monarch Air Group of Fort Lauderdale.