How much does it Cost to Lease a Private Jet

This is due to the growing run on passenger planes or the non-availability of last minute flight services, the fact that more and more passengers are using private planes to conserve travel times and experience incomparable levels of convenience is the same. Whether it is reasonable to own a private jet or whether it would make more sense to hire one is the issue facing many individuals.

Private jet costs vary between $3 million and $90 million based on seat size, reach, equipment and convenience. The purchase of a used aeroplane is more economic than the purchase of a new aeroplane, but may cost more in maintenance-wise.

The cost of small private aircraft like the Super King Air Turboprop is between 4 and 7.5 million dollars. Larger aircraft that can transport more than 50 passengers cost over 50 million dollars. Although the costs for those who choose to travel by private jet are irrelevant, it is wise to conduct a cost-benefit study and make a comparison between the cost of ownership of a private jet and that of hiring one.

Whilst the cost of renting a private jet is significantly higher than with first rate rates, it is certainly much cheaper than purchasing and servicing a jet. Rental costs vary depending on the airplane type. E.g. the estimated cost per flying hours is $2400-$2700/hr. for lightweight planes (1-7 passengers), $3400-$3700/hr. for medium-sized planes (1-8 seats), $3900-$4500/hr. for medium-sized planes (1-9 passengers) and $5000-$12000/hr. for large planes (1-16 passengers).

When you buy a $10 million private jet, it is depreciated in 8 years to a remaining value of approximately 20 per cent. Typical amortization is 10 per cent per year and amounts to $1 million per year. Expenses for service are approximately $200,000 per year and $50,000 per year for unscheduled service. Overall cost of operation per year is approximately $1,250,000, which is nearly 400 flight hour if we consider $3000 as the private one-hour mean charters hour.

Based on the calculations, if the overall number of flight operating time exceeds 400 flight operating time, ownership of an aircraft is the more advantageous alternative than lease. Choosing whether to rent or buy a private jet can be bewildering, and then you need an experienced professional to help you make the right one.