Summary
- Storage costs, varying with location and type of storage, range from $18,000 to $36,000 per year.
- Crew expenses for pilots and cabin crew members can reach $400,000 annually, including accommodation and per diem charges.
- Aircraft insurance costs can range from $10,000 to $500,000 yearly depending on various factors, including aircraft use.
The demand for private jets has significantly increased in recent years. Purchasing a private jet has never been easier, particularly with the availability of a variety of aircraft management companies.
The purchase price of the jet is not the only cost owners have to worry about; operating and managing a private jet comes with a wide range of costs. This article focuses on some of the costs other than the initial investment.
1
Cost of storage
Yearly rental cost of storage: $18,000 – $36,000
- Open-air aprons are cheaper than closed hangars
- Storage can be rented on a monthly, yearly, or longer terms
Purchasing an aircraft, new or pre-owned, can be a complex task, but now that it is done, you need a place to store it securely. Many airports and airfields offer private aircraft storage hangars and aprons. However, depending on the type and size of storage, aircraft owners may pay a few thousand in monthly rent.
An open-air apron space may cost less than a covered storage hangar space. Some facilities also provide inspection and maintenance services as part of their storage package. That would certainly cost more, but you could probably hit two birds with the same stone.
Photo: Michael Derrer Fuchs | Shutterstock
LunaJets states that a typical storage space for a mid-sized private jet costs between $1,500 to $3,000 per month. Can you build your own hangar in your “backyard”? Well, building your own aircraft hangar may cost $30,000 to a quarter million, depending on the location and requirements.
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2
Crew cost
One or two pilots and at least one cabin crew member
- Annual salary for a pilot: $85,000 to $300,000
- Annual salary for a cabin crew member: $50,000 to $75,000
Flying an aircraft 100 hours a year, which is actually a bare minimum, still requires the owner to hire pilots) and at least one cabin crew member. For some fractional ownership contracts, the aircraft management companies provide flight crew services for flights. However, independent owners must arrange for pilots and cabin crew members.
Photo: Tyler Olsen | Shutterstock
Hiring on an annual basis means paying anywhere between $150,000 and $400,000 each year in crew salaries. During trips away from home, the flight crew must also be compensated (or arranged) for accommodation and food while they wait for the owner to conclude the trip. Longer trips, particularly to international destinations, also incur per diem charges for flight crew.
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3
Aircraft insurance
It can cost as little as $10,000 or as much as $500.000 per year
The cost of insuring a private jet varies based on the size, type, and year of the aircraft. LunaJets states that it can cost as little as $10,000 per year ($830 a month or as much as half a million dollars ($41,700 a month) depending on the liability limits, aircraft use, coverage, pilot qualifications, and other factors.
Aircraft use is one of the biggest factors because it triggers maintenance, particularly one that is initiated by life-limited parts. While the insurance cost may not be significant, it still adds up as one element of the operating costs. Private jet management companies generally provide complete services, including maintenance, insurance, and financing.
4
Cost of fuel
A large portion of operating costs
Aircraft type |
Fuel burn |
Cost per flight hour |
Cost per year (100 flight hours) |
---|---|---|---|
Light Jet |
130-220 gallons per hour |
$1,150 |
$115,000 |
Midsize Jet |
190-290 gallons per hour |
$1,600 |
$160,000 |
Super Midsize Jet |
250-380 gallons per hour |
$2,100 |
$210,000 |
Large Jet |
290-540 gallons per hour |
$2,800 |
$280,000 |
Fuel costs account for the largest portion of operational costs, roughly 25% to 35%. Fuel costs fluctuate significantly based on international market prices, which are influenced by global geopolitical factors. Some local markets have a significant markup on international fuel prices (as high as 70%).
Photo: Bombardier
While it is difficult to accurately estimate the fuel cost, private jet owners have a rough estimate of their fuel expenditure depending on the number of flying hours each year. At a jet fuel price of approximately $7.00 per gallon, we provided rough estimates based on the 100-hour yearly flying on jets of various sizes. Notably, fuel delivery and other surcharges may further add to the hourly cost of fuel.
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5
Routine maintenance of the aircraft
Approximate cost of maintenance: 2% of the original aircraft price per year
Like any other vehicle, aircraft also require routine maintenance, somewhat irrespective of the frequency of flights. From regular oil checks and top-ups to routine inspections and preventive maintenance, owners have to bear the expenses. Newer aircraft require a lot less maintenance than pre-owned ones. For older aircraft, heavier maintenance is required at frequent intervals.
Photo: BoJack | Shutterstock
Unplanned maintenance events resulting from unforeseen incidents, such as a bird strike or a hydraulic failure in the landing gear, can cost several thousands in repairs.
Private aircraft owners may purchase a maintenance services package through a management company or directly from an MRO facility. It is noteworthy that there are some tasks that the FAA permits qualified owners to perform, as highlighted by the Republic Jet Center.
- Changing the engine oil/filter
- Greasing the wheel bearings
- Changing the landing-gear tires
- Changing the navigation light bulbs
- Changing the landing light bulbs
- Lubricating the airframe
- Changing the side windows
- Patching the fairings, cowlings, and cover plates
- Making simple repairs to interior fabric
- Repairing the navigation light and landing light wiring
- Servicing the landing gear shock struts with air or oil (or both)
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What are your thoughts on the additional costs associated with the purchase of a private jet? Share your views in the comments section.