Aviation is an industry governed by time - and flying commercial, even if you are in first or business class, means that you will be dealing with scheduled arrival and takeoff times, flight duration, boarding procedures, and of course delays. Flying is time-consuming, and when you are flying for work, that lost time translates into lost profits. 

For many, the solution is purchasing a private aircraft, whether for individual use or for the use of a company’s executives. Although seen as a symbol of status and luxury, private jets are often worth their weight when it comes to time saved. 

“Business jets are time machines,” VP of aircraft sales at Duncan Aviation Steve Gade says. “The majority of our clients own business aircraft because it helps their businesses be more efficient or helps them reach out to new customers and prospects. And it helps their executives be in multiple places on the same day.” 

In 2017, the National Business Aviation Association published a study that drew correlation between companies in the S&P 500 that deploy business aircraft versus those that don’t. They found that the companies with business aircraft outperformed the non-users by 70 percent. 

“There’s a huge business benefit by having access to a fleet of aircraft anytime, anywhere in the world at a moment’s notice,” Thomas Flohr, founder and chairman of VistaJet said. “I can use the executive time of my decision makers better by not flying commercial.” 

That being said, private jets come with costs far beyond the initial price of the plane, which is already ranging from tens of millions of dollars to more than $100 million. When considering the purchase of a private aircraft, here are some additional factors to consider. 

Fuel, pilot and flight staff, maintenance and more factor into the day-to-day operation of a plane. A smaller jet such  as the Embraer Praetor 600 which costs around $22 million is going to have a smaller operating cost than a larger jet such as the Bombardier Global 5000 with a price tag of around $41 million. While you may be able to justify a high initial price, be sure to keep in mind the ongoing costs of operation. 

“An airplane is going to cost anywhere from $500,000 a year for a very light jet to several million dollars a year as you get into the heavy jets,” Javier Walker, CEO of Jet Linx said. 

A general way to calculate yearly operational costs for a private aircraft is to budget around five to 10 percent of the purchase price per year. Fixed costs remain at around two to four percent, which includes pilot salaries, benefits, hangar fees and insurance. Variable costs such as fuel range from three to six percent of the plane’s cost per year, depending on the frequency of travel.

Keep in mind that you will not be making any money off of the aircraft itself either - depreciation rates for aircraft are high in the 7-12 percent range annually. 

A way to save money on a private jet initially may be purchasing a preowned jet. 

“Some of those prowled aircraft are barely used, almost new,” Walker says. “Preowned doesn’t necessarily mean 10 years old. It could be a year old. We try to encourage our clients to look at both.” 

It is important to weigh your options, as buying a new jet may come with more cost upfront, but requires less maintenance over the warranty period. Though purchasing a like-new jet for less than a brand-new, off-the-lot aircraft would result in significant savings across the board. 

If you are considering making the switch to private air travel, recognize that buying an aircraft is not your only option. While it may make sense for a large corporation or a frequent travel clocking in over 400 hours of flight time per year, there are ways to fly private without shouldering the cost of an entire plane. 

Fractional ownership models and private travel memberships are cost-effective alternatives to purchasing a private jet. For travelers when spend 150-200 hours traveling per year, these structures offer the same level of convenience and luxury without the hassle of yearly maintenance and operation costs, not to mention the price of the plane itself.