Buying a Long Range Corporate / Private Business Jet
| Private executive jets are becoming ever more popular with corporate users. In the business world where time is money, business jets provide extra comfort, security and flexibility than the standard business class and first class scheduled airline services. Let's consider the purchase of a long-range corporate jet... |
Jet charters and jet rentals are usually fine for infrequent users wanting to fly a couple of times a year. Fractional jet ownership is a step up and can be a relatively economical way of part-owning a business jet. However if your organisation needs over 500 hours per year flying it may be worth purchasing a private jet outright.
The following is a list of the larger business jets available for sale in the aviation marketplace and suitable for long range inter-continental travel. There are smaller and lighter jets available for continental use but we will focus here on the top end of the market.
Gulfstream G550 (Gulfstream
V)
Range 6,750 miles
passengers 14-18
Speed: Mach 0.88
List Price
$46 million
Gulfstream G500 (Gulfstream
V)
Range 5,800 miles
passengers 14-18
Speed: Mach 0.88
List Price
$38 million
Boeing Business Jet (based on
Boeing 737)
Range 6,800 miles
passengers 25 (up to 50 depending on seat
configuration)
Speed: Mach 0.82
List Price $48 million
Airbus
A319CJ (Airbus A319 with extra fuel tanks)
Range 6,500 miles
passengers
25
Speed: Mach 0.85
List Price $45 million
Bombardier
Global Express XRS
Range 6,150 miles
passengers 19 max
Speed: Mach
0.89
List Price $46 million
| Alternatively it is possible to buy an even larger plane such as a used Boeing 767 which can be re-fitted to your precise specification. Boeing want to replace the 737 based BBJ by the Boeing 767-300ER, which will have 50 flat seats as standard. In the future the Boeing 787 Dreamliner will be available as a private jet - Swiss based PrivatAir has 2 aircraft on order. |
Costs
Owning an execuive business jet carries both fixed and operational costs. In terms of fixed overheads you will need to have crew of pilots which will cost around $500k annually. Insurance costs of circa $400k will be incurred and service and training costs add another $400K.
Your jet operator can look after all aspects of the management of the aircraft including certification for around $120k - $250k. They can also charter out the plane when not in use - so you will recoup some of the investment.
For year end accounting purposes, depreciation will be a factor - Boeing estimate depreciation of $5-6m for their BBJ.
With the price of oil heading higher, fuel charges will be considerable - expect to pay from $1,500 upwards per flying hour on fuel. So expect the total operational costs to be at least $2-3m for the year.
Executive jets can be ordered directly from the manufacturers. Alternatively there are dealers and brokers that have both new and used corporate jets for sale. These type of long range jets can be a good investment for multi-national corporations and high net-worth individuals - you should always talk to an aviation professional to discuss your options.
Air Travel Articles & Resources > Private Jets Resources > Buying Long Range Corporate Jets
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