When Buying A Private Jet …
At a certain point in your career and a certain level of success, owning your own aircraft may is not a far-fetched idea.
Experts advise starting with chartering a private jet, and if it is available entering into a fractional ownership arrangement that allows the use of an aircraft for a certain number of hours a year.
That way you can try out different aircraft and see what’s involved before deciding if you want to buy your own jet.
The Big Q: At what point does ownership make economic sense?
The Big A: As a rule of thumb, if you spend over 300 hours a year in the air, that is when you might want to start shopping around for your own “Bird”.
Anything less and a charter or fractional ownership may make more sense.
One of the Key advantages of owning your own aircraft is that you can customize it to suit your needs and tastes.
If work is priority in the air, you can set up a conference grouping on board. But if flying is the only time you can get any real sleep, then installing a bed with your favorite mattress is the ticket.
Remember, when you charter, you will not always get the same aircraft..
So, if you are set on owning a private jet, there are 2 Key paths to making the purchase. If you have done your homework and know which make you want, you can approach the manufacturer directly.
But, if a jet newbie, then engage a professional consultant or broker to help help through what could be a complex process.
Qualified aircraft brokers, like luxury yacht brokers, can help to not only find and negotiate the best deal on an aircraft, and they save you time and money in the process of completing the transaction.
Brokers are well educated in the process of buying and selling aircraft, which will save you time and money in the process.
There are 3 basic types of jets available: Light, medium and heavy.
- Light jets usually have a 1,000 nautical mile range and can seat up to 6 people.
- Medium jets have a 1,500-2,000 nautical mile range and can seat 8-10 passengers.
- Heavy jets usually have a 2,500-3,500 nautical mile range and can seat 12-16 passengers.
Choose the one based on how far you need to fly and how many people you usually travel with.
If overseas travel is required, the aircraft will require the longer range aircraft.
It is also advisable to get a plane that seats more people than you intend to take with you to allow for comfort during longer haul flights.
There are many companies and banks that specialize in aircraft financing.
Like most loans, the company or individual will have to qualify for a loan as well as provide some form of a guarantee.
Lenders typically have a certain niche that they finance. Some will offer higher loan amounts, some will only finance newer aircraft.
A good broker will be able to assist you in finding the right financing solution
The cost of the aircraft varies depending on how large the plane is, how old it is, and its maintenance history.
If you do notmind a pre-owned model, older used jets can be purchased a a big price savings.
Below is the list that will give you an idea of the real cost of private jet ownership once you own one, as follows:
- Annual insurance premium.
- Hangar Space
- Maintenance
- Salaries and benefits for crew
- Landing Fees, handling fees and even navigation fees
- Catering
- Fuel
Professional management companies handle all aspects of owning an aircraft for the owner. They will maintain the aircraft to the manufacturer’s requirements as well as handle hiring pilots.
Some can even offer the aircraft for charter to help offset some of the maintenance costs while you are not flying it.
Note: a downside to chartering your aircraft out is that it will put wear and tear on the aircraft and with every hour it flies it moves it closer to its next maintenance schedule.
Everything from colors and carpeting to lighting and cabinetry is open to customization. Interior design aside, planes can also be fitted out with entertainment systems and Wi-Fi access.
Manufacturers can offer you their in-house consultants to help customize your aircraft, but very often buyers bring their own designers into the process.
Check out “The Legend of Gulfstream” by it tells the story of how Gulfstream Aerospace grew from a division of Grumman, maker of the World War II-era Wildcat and Hellcat, to the premier manufacturer of personal and corporate jet aircraft.
Nose down, tail up and head into the wind.
Happy landings,
Paul Ebeling
HeffX-LTN
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