Why Chartering A Private Jet Is Better Than Owning
Gulfstream Peetlesnumber1 via Wikimedia Commons.
While we would all love to own our plane, the costs and hassles associated with it are much more than you ever imagined. OK, you have researched and found the aircraft that perfectly fits you. Now, it's time to go out and buy your dream aircraft. Did you know that a secondhand jet aircraft, never mind a new one, can cost you anywhere from $2 million for a Very Light Jet to $418 million for a VIP Airliner? Once you have made a purchase, you now have the following operating costs to consider:
Insurance
Like a car, all aircraft need to be insured, but unlike when insuring a vehicle, there are far fewer options when it comes to aircraft. The least expensive option is with a monthly limited liability policy. While this will make the insurance less costly, it will not help cover the costs should something get damaged or need replacing. You are probably familiar with the term "hull loss," which refers to a plane that will cost more to repair than replace. For this reason, consider a policy that covers you for hull loss, and yes, you are talking about tens of thousands of dollars a year. The cost of private jet insurance can range anywhere from $10,000 to 500,000 a year depending on the coverage amount.
Pilot Wages
If the aircraft is anything more significant than a tiny jet, it will need both a captain and a co-pilot to fly. Wages vary depending on the type of aircraft the pilots experience and where they want to fly. For suitably qualified pilots, you are looking at $70,000 to $100,000 annually, with some highly experienced pilots demanding more.
Parking and Hangar Fees
Depending on the airport, hangar fees can be anywhere from $81,000 to $160,000 annually.
Every time you takeoff and land at an airport, you pay a fee to the airport based on the weight of your aircraft. Takeoff and landing fees can cost as much as $150 to over $2000 dollars.
If a private jet flies 500 hours a year based on a price of $5 per gallon, the typical burn will be $3,500 gallons, equating to $17,500. Also, remember the price of aviation fuel fluctuates, and if the price of oil were to go up, your fuel costs could increase dramatically.
Maintenance Costs
The Federal Aviation Authority (FAA) mandates that all private jets undergo a thorough yearly examination by an FAA-certified mechanic. The cost of this will depend on the size of the plane and the make. Besides the annual maintenance, private jets need to be inspected by a mechanic every thousand hours of flying time. Depending on the mechanic and where the inspections occur, it can cost thousands of dollars.
Now, what if something needs to be replaced? A simple flat tire on a private jet can cost between $1,000 and $2,000 to repair, while if a jet engine needs to be replaced, you are looking at hundreds of thousands of dollars.
You don’t need to own a private jet to fly on one
As you can see from the costs above, you would need to be quite wealthy to own a private jet and even if you could afford private jet ownership it is only feasible if you fly more than 120 hours a year. However, there are ways that you can fly on a private plane without owning it. When chartering a private jet, you pay a one-off quoted price for the trip. Also, to ensure you get the best price, do not go directly to the jet charter operator; instead, use a broker like Paramount Business Jets and benefit from having dozens of safety-approved operators compete for your business.
Gulfstream Peetlesnumber1 via Wikimedia Commons.
Paramount Bussiness Jet has a vetted list of over 4,000 aircraft it uses for private jet charters located at airports worldwide. Tell Paramount how many people there are in your party and where and when you want to travel, and they will find the perfect aircraft to suit your needs for the best possible price.
Many people are selling their planes and chartering instead, because of all the expense and hassle involved in private jet ownership, many people have sold their private jets and now just charter aircraft when needed.
A great example of this is golfer Phil Mickelson, who used to own a Gulfstream V that he used to ferry him from one golf tournament to the next.
When talking with Forbes magazine about selling the plane and now chartering a private jet when he needs one, Mickelson said it was one of the most intelligent decisions he ever made. He said his stress level has gone down exponentially, explaining:
“When Amy and I would travel to the mountains to go ski, I would need to know months in advance when I was going to go so that I could get a hangar. Otherwise, if the plane sits outside, things freeze, and there is a huge additional expense that always comes up.”
He added, "Rather than having our plane fly back across the country to pick her up and fly back out, she just hops on a private jet charter flight, and we only pay for the hours that she was in the air.”
Sources: Forbes.
