Buying a Mid-Size Corporate / Private Business Jet
| Private executive jets are becoming ever more popular with business travellers and high net worth individuals. Corporate jets provide luxury, security and high flexibility - something which the scheduled business class and first class service airlines cannot compete against. Companies are using private jets not only for directors but also for middle management. |
If you fly once or twice a year then jet charters and jet rentals will be fine for your needs. Clients needing more travel time will opt for block charter hours or a fractional ownership program. However if you have a need for more than 500 flying hours per year then purchasing a private jet outright will probably be your best option.
Let's consider some options for mid-size business jets available for sale in the marketplace and suitable for mid-range intracontinental travel of up to 3,000 miles:
Raytheon
Hawker 800XP
Range 2,600 miles
Passengers 6-8
List Price $13 million
Cessna
Citation X
Range 2,600 miles
Passengers 8
List Price $18 million
This
is one of the world's fastest executive jets with a flying speed of 0.92mach.
Bombardier
Lear Jet 60 XR
Range 2,500 miles
Passengers 8
List Price $12 million
Gulfstream
G150
Range 3.000 miles
Passengers 6-8
List Price $12 million
Note that buying your own business aircraft means you can also customise it to your own specification at extra cost.
Running Costs
1.
Interest charges for any financing
2. Depreciation of asset
3. Pilots (up
to $500k)
4. Insurance costs (up to $400k per year)
5.
Management company charges - your jet operator can look after all aspects of managing
the aircraft for around $120k - $250k. They can also charter out the plane when
not in use - allowing you to recoup a proportion of the investment.
6. Training
and maintenance (add another $400k)
7. Fuel bills
8. Hangar rent
9. Catering
10.
Landing fees
11. Weather forecasting
Expect the total annual operational costs to be at least $2-3m.
Where can you buy a corporate jet?
You can negotiate an order for an executive jets directly with the manufacturer. Alternatively there are dealers and brokers that list both new and used corporate jets for sale.
Ensure you do a full cost benefit analysis before purchasing a private jet and discuss all accounting and legal issues with a professional.
Air Travel Articles & Resources > Private Jets Resources > Buying Mid-Range Corporate Jets
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