Summary
- A new Cirrus Vision can be bought for around $2 million if budget is doubled or can be chartered for $3,000 an hour.
- Costs of extra features to pre-owned jets: Wi-Fi $500,000+, Carpet $50,000 to $100,000, Leather seat cover replacement $200,000.
- Buying a pre-owned private jet under a million dollars is possible, but include the extra ownership costs such as fuel and maintenance.
Everyone knows investing in private jets is an expensive matter and not for the fainthearted. With popular private jets such as the Gulfstream G700 and the Bombardier Global G7000 coming in at between $72 and $80 million, it is not a decision to be taken lightly. A Boeing Business Jet or Airbus Corporate Jet straight off the assembly line costs around $110 to $120 million.
What is in the budget?
For those of us without such deep pockets, is it possible to buy a private jet for less than a million dollars? You might be surprised to know it is actually possible with lots of research and advice from a specialist in the private jet sales field. The cheapest new private jet is the Cirrus Vision, which can be bought for around $2 million or chartered for $3,000 per hour, but it will have the latest in technology. So, with that in mind (and on a budget), it might be worth looking at pre-owned aircraft.
Why buy in the first place?
The first thing to consider when buying a private jet is the reason for its use. Is it for personal and family use to charter out or for business trips? What routes will be flown? Are they for short-haul or long-haul trips? How many passengers will be traveling? This will narrow down your choices. A Cessna Citation X might be perfect for short business trips, but for consistent long-haul flights, a Gulfstream G550 would be a more comfortable alternative. Of course, having a private jet is the ultimate in luxury and convenience.
Photo: Jeff Schultes | Shutterstock
Pre-owned private jets
Pre-owned aircraft are another option and a great way of finding an aircraft for under a million dollars. Buying a pre-owned private jet is economical, but it also depends on the condition of the aircraft and if it needs refurbishment or equipment upgrades and maintenance. Although the aircraft may be a bargain, those extra costs add up. A pre-buy inspection is crucial. Potential costs for upgrading an aircraft:
- Fitting Wi-Fi would cost over $500,000 plus $100,000 for the antenna.
- Replacing the carpet would cost between $50,000 and $100,000.
- Recovering leather seats would cost $200,000.
Real-time examples
In AvBuyer:
Cessna Citation 500 (1976) $385,000 plus tax
Cessna Citation II (1979) $350,000
Cessna Citation III (1985) $580,000
Astra Gulfstream 1125 (unknown) $895,000
At Globalair:
Cessna Citation II (1981) $450,000
Beechcraft Beechjet 400A/ Hawker 400 (1992) $750,000
Cessna Citation 500 (1976) $385,000
The initial outlay for the aircraft is not the final cost for new or pre-owned aircraft. You will also have to pay for fuel, staff (pilots and cabin crew), insurance, hangar space, and maintenance. Operating costs for private jets can be found at Liberty Jet. These are the estimated operating costs for the Cessna Citation II.
|
Cost |
Flying 200 hours/year |
Flying 400 hours/year |
|---|---|---|
|
Direct Operating Costs (DOC) |
||
|
Fuel Cost @ $7.23/gal Updated to Nat’l Avg Each Week |
$261,726 |
$523,452 |
|
Maintenance |
$105,993 |
$211,986 |
|
Engine Overhaul |
$94,005 |
$188,010 |
|
Misc Crew/Landing/Handling |
$40,000 |
$80,000 |
|
Miscellaneous Variable |
$5,000 |
$10,000 |
|
Total Direct Operating Costs (DOC) |
$506,724 |
$1,013,449 |
|
Fixed Costs |
||
|
Crew |
$201,787 |
$201,787 |
|
Crew Training |
$16,798 |
$16,798 |
|
Hangar |
$28,038 |
$28,038 |
|
Insurance |
$10,957 |
$10,957 |
|
Jet Management |
$48,000 |
$48,000 |
|
Miscellaneous Fixed |
$9,983 |
$9,983 |
|
Total Fixed Costs |
$315,562 |
$315,562 |
|
Total Annual Budget |
$822,286 |
$1,329,010 |
Alternative options
Of course, there are alternatives to buying. Chartering a private jet may be a better option if only traveling a few times a year. You can hire a private jet for anywhere between $2,000 and $14,000 per hour. Empty-leg flights are a cheaper option if you are flexible with travel plans. They can be found on the operator’s websites for a reduced rate. They are ferry flights with no passengers when the aircraft repositions to the base or to meet passengers down the route.
It is possible to lease an aircraft through jet membership programs, so you have the flexibility of using a private jet without all the extra operating costs. These offer a fixed number of hours that you can buy. Fractional ownership is another option, where you own a share in a private jet. For example, a share in a Hawker 800XP aircraft was advertised for $995,000 with an ownership of 37.5%. Shares can start from 1/16th and 50 hours up to 1/2 and 400 hours.
In conclusion
A private jet can be bought for one million dollars if you buy a pre-owned aircraft. However, you have to consider the price of any refurbishment or upgrades required. You also have to look at the operating costs of the aircraft and see if it’s a worthwhile investment. There are some aircraft under budget on the market at this time, mostly business jets from the 1970s and 1980s. If you doubled the budget, you could buy a new Cirrus Vision with all the latest technology. If buying is not an option, it is still possible to charter a flight, buy hours or buy shares in a private jet.