Charter Flight Cost per Hour

More information about the prices for chartering privately can be found in our complete cost statement, how much does it cost to rent a privately owned aircraft?

Do your planes get subsidies? Business Jet Travelers

The new G450, which was operated just over 400 hrs a year, will cost about $6.8 million a year, based on the accounting amortization method, according to aircraft information provider Conklin & de Decker. In the case of depreciations on the markets (with a longer amortization period), the register card amounts to 4.2 million dollars. That' more than $15,500 or $9,500 an hour of flying.

Meanwhile, you'll find the latest G450' on the charter boat charter business for about $5,600 per hour, with most of the extensive stock below $7,000 per hour - and that's before brokerage starts raising it. An Embraer Phenom 300 that is operated approximately 400 hrs per year has operating expenses of more than $2 million or $1.5 million per year and approximately $4,500 or $3,500 per hour with accounting or commercial write-off.

However, 300s can charter for less than $2,500 per hour, with latecomers available in the $3,000 area. Is it really going to cost the owner more than you are paying if you let your jet combust for a few minutes? To a large extent, the response will depend on whether the aircraft comes from a administered aircraft or from a separate one.

U.S. charter planes come from two fundamental resources. Enterprises such as Executive Jet Management, Clay Lacy Aviation and Priester Aviation have signed contracts with operators to lease their jet liners and turbo-props. In addition, XOJet, JetSuite and VistaJet own and run their own aircrafts (O&O) and only use them for chartering.

A G450 will cost about $9,500 to $15,500 per hour of flight, based on how you handle it. Nevertheless, on the charter business you will find the latest models of a G450 for $5,600 per hour. Charter revenues in the administered aviation industry are no longer seen as a way to bear part of the property and operational overhead.

In the case of historic prices, it is acceptable that shareholders cannot really benefit from the charter of their planes - regardless of the O&Os. Emollient of the implied pecuniary impact is the fact that the owner does not really have a cheque for the discrepancy between all their expenses and your charter installment.

However, the additional use contributes to the overall flight duration and while most aircraft operators restrict the number of operating flight times they can charter their aircraft, this use still affects the value and cost of the aircraft when they finally resell it. O&Os, which are far outperformed by the fleet under management, face particular challenge.

Nobody subsidises their own vehicles, paying them a managerial charge or relieving them of liability for servicing outlay. For this reason, some charter managers have long suspected that their own aircraft models cannot outlive them. Lower yearly operating expenses of this assets can make the charter for an O&O at the above mentioned installments viable and remove your charter grant.

Remember, however, that many planes in administered fleet have not been newly bought, which also reduces operating expenses. A further principle: "You have to believe in driving pricing," says Stewart, pointing to the possibility of adjusting charter prices due to fluctuations in market demands. This is a policy used by airline companies, but until recently largely ignored by the charter world.

Does this mean that managers of airplanes really subsidise their charter clients? No matter what the real cost of chartering is, its real value, like that of used planes or something else, is what someone will be paying for it. It may be useful for the owner to allocate the cost to the times-of-use from an accountancy point of view, but not from the owner's point of view. However, this is not the case.

Owners pay not only for usage but also for usage times, totalling 8,760 per year (365 x 24 hours). Split the expense accordingly, and the cost of property is only about $775 or $480 per hour for the G450 and $230 or $170 per hour for the Phenom 300, with accounting or inventory write-off.

These figures make the charter income appear more appealing. It can be said that if you are a charter client, your on-board period should cost less than if you were an owning charter client. Finally, you have no guarantee of having full flight control over these flight times, while the proprietors can use them at any given moment.