From Buy to Fly: What to Know Before Buying a Private Jet

For luxury travelers considering a first-time PJ purchase, Jet Linx has released its essential guide on everything you need to know before buying a private jet.

What to Know Before Buying a Private Jet

1. Costs of Investment and Variable Costs

• Beyond the initial price tag, private jets come with several variable costs. Depending on whether an aircraft is new or used, private jets can range in price from $3 million to $90 million.
• However, the purchase price does not include the cost of ownership per year, which can hover around $1.5 million (depreciation included).
• Variable costs depend on the number of hours operated and miles traveled, but a typical Phenom 300 owner could anticipate $800,000 in variable costs when flying 400 or more hours per year. Fuel, maintenance, crew expenses, catering, parts and landing/parking fees contribute to variable costs.

2. Hiring and Managing Flight Staff, Plus Other Fixed Costs

• The cost of a private jet also includes pilot salaries ($100,000 or more per pilot plus benefits), insurance ($30,000 or more), the cost of renting a hangar ($30,000), as well as a variety of other fixed costs such as refurbishing, recurrent pilot training, computer maintenance, avionics maintenance and navigation chart service.

3. New vs. Pre-Owned

• Deciding between new and pre-owned aircraft is up to the buyer. While the cost of a new private jet is higher upfront, warranties that come with them can help reduce the cost of maintenance in the short term. Purchasing a new jet also comes with the latest technologies, conveniences and comforts – preferences that the buyer must decide whether to invest in.
• Many pre-owned aircraft offer the same capability as new aircraft, but with a lower upfront cost and the promise of slower depreciation. It is important to work with the right partner to identify and inspect used private jets, but the immediate savings that come from a pre-owned jet can be significant. The term ‘pre-owned’ does not always describe a 10-year-old private jet with thousands of hours flown. Some pre-owned aircraft are barely a year old with only a few dozen flight hours under their wings.

4. Maintenance and Service History

• A damaged aircraft can be repaired, but you need to know what kind of damage occurred and who fixed it, among other details. Perhaps more important for buying a private jet is the maintenance record. Knowing that the plane has been properly maintained provides peace of mind for such a large investment.
• Along the same lines, verify the total time on the airframe, total time on the engines, and the amount of time passed since a major overhaul. If any major overhaul to the aircraft has occurred, you need to know the details surrounding what was done. Your advisor should provide this information to you and determine how it might affect a purchase.
• Make sure to gather a complete listing of all additional installed equipment, including strobes, engine monitors, oxygen, special performance-enhancing kits, articulating seats, or anything else that may affect the jet’s performance or safety.

5. Aircraft Management & Revenue Generation 

• There is a major benefit to hiring aircraft management companies like Jet Linx to help acquire, because it has the experience managing over 100 different types and categories of private jets and can leverage its scale to reduce most costs a private jet buyer will face – including all maintenance, fuel and hangar fees. In total, Jet Linx aircraft owners can expect to save a minimum of 15% on these costs, saving thousands of dollars annually.
• Jet Linx offers a built-in revenue stream with its Jet Card program. All aircraft owners’ planes are released for use in the Jet Card program, where revenue hours are used to offset the costs of ownership. On top of the Jet Card program, its fleet can also be released to the wholesale charter market for added revenue. Jet Linx aircraft owners enjoy two separate revenue streams, ensuring their costs of ownership are reduced.