Summary
- The Gulfstream G500 has 33% more fuel efficiency than G450 with Pratt and Whitney engines.
- The annual budget to operate G500 for 200 hours is around $1.8 million.
- It may not be cost-effective to own a G500 if flying less than 200 hours yearly due to high operating costs.
Gulfstream Aerospace first introduced the G500 private jet on October 14th, 2014. It replaced the G450 and its first flight was on May 18th, 2015. The first production model left the assembly line and was delivered on September 27th, 2018. During tests and over 2,900 flight hours later, the G500 reached speeds up to Mach 0.995 and a flight level of 53,000 feet. Since production first started, over 125 of the aircraft have been built but how much does a Gulfstream G500 cost to operate?
Photo: Gulfstream Aerospace
Introduction to the G500
The G500 is a private jet that can seat 19 passengers but more conventionally seats 13 and sleeps 6 persons. It has three distinct living areas and has a galley area and a lavatory. It is heavily influenced by the G650 in exterior and interior features. The engines are Pratt and Whitney Canada PW814GA turbofans which was a move away by Gulfstream, who had previously used Rolls-Royce engines. They produce 15,144 pounds of thrust and make the G500 33% more fuel-efficient than the G450. The flight deck is Honeywell Symmetry.
Photo: Gulfstream Aerospace
Estimating an annual budget
Let’s take a look at the total annual budget required to operate a G500 based on 200 hours flown per year. According to Liberty Jet, you would need a budget of $1,813,601. Although the G500 has a maximum speed of 560 miles per hour, we can take an average speed of 448 miles per hour in reflection of slower speeds during the climb, cruise and descent. This would equate to $20.24 in terms of cost per mile.
For a year, flying 400 hours, the G500 would need an annual budget of $2,934,438, making it quite economical to fly more. The cost per mile can be worked out at $16.38. Of course, this does not include the purchase of the aircraft, depreciation, or any interest payments. The new purchase price is around $49.5 million and a pre-owned aircraft would cost around $42,500,000.
|
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 |
$723,000 |
$1,446,000 |
|
Maintenance |
$88,989 |
$177,979 |
|
Engine Overhaul |
$198,848 |
$397,696 |
|
Misc Crew/Landing/Handling |
$80,000 |
$160,000 |
|
Miscellaneous Variable |
$30,000 |
$60,000 |
|
Total Direct Operating Costs (DOC) |
$1,120,837 |
$2,241,674 |
|
Fixed Costs |
||
|
Crew |
$344,745 |
$344,745 |
|
Crew Training |
$104,367 |
$104,367 |
|
Hangar |
$103,108 |
$103,108 |
|
Insurance |
$34,148 |
$34,148 |
|
Jet Management |
$78,000 |
$78,000 |
|
Miscellaneous Fixed |
$28,397 |
$28,397 |
|
Total Fixed Costs |
$692,764 |
$692,764 |
|
Total Annual Budget |
$1,813,601 |
$2,934,438 |
What is considered an operating cost?
Operating costs can be divided into two distinct groups: direct operating costs and fixed costs. Direct operating costs can include things like fuel, maintenance and engine overhaul. Miscellaneous extras could be ground handling fees, landing fees and additional crew fees. Fixed costs can be classed as pilot fees and training, hangar and jet management fees and insurance.
Photo: Gulfstream Aerospace
More hours plus charter
Furthermore, we can take a look at the operating costs of a privately owned G500 with more flying hours and considering added charter operation. For 450 flying hours per year and based on a $6.00 per gallon fuel price, Aircraft Cost Calculator estimates variable costs of $1,798,200, fixed costs of $1,211,683 requiring an annual budget of $3,009,883. This can be broken down to an hourly rate of $6,688.63.
Gulfstream G500 Budget:
Flying 450 Hours per Year
- Annual Owner Hours: 450
- Annual Charter Hours: 0
- Fuel Cost: $6.00
- Total Fixed Cost: $1,211,683.00
- Total Variable Cost: $1,798,200.00
- Annual Budget: $3,009,883.00
- Total Hourly Cost: $6,688.63
Flying 450 Hours per Year + 200 Charter Hours
- Annual Owner Hours: 450
- Annual Charter Hours: 200
- Fuel Cost: $6.00
- Total Fixed Cost: $501,483.00
- Total Variable Cost: $1,798,200.00
- Annual Budget: $2,299,683.00
- Total Hourly Cost: $5,110.41
Photo: Gulfstream Aerospace
Added charter
Some private owners decide to charter their aircraft out to offset some of the costs involved in aircraft ownership. So, with the owner’s original 450 hours and then adding 200 hours of charter would require an annual budget of $2,299, 683. That breaks down to $5,110.41 per hour.
Aircraft Specifications:
|
Model |
G500 |
|---|---|
|
Cockpit crew |
Two |
|
Capacity |
19 |
|
Length |
91 ft 2 in (27.79 m) |
|
Wingspan |
86 ft 4 in (26.31 m) |
|
Height |
25 ft 6 in (7.77 m) |
|
Cabin length |
41 ft 6 in (12.65 m) |
|
Cabin cross section |
Height: 6 ft 2 in (1.88 m), Width: 7 ft 7 in (2.31 m) |
|
Maximum Take Off Weight (MTOW) |
79,600 lb (36,100 kg) |
|
Maximum payload |
5,250 lb (2,380 kg) |
|
Turbofans (x2) |
P&WC PW814GA |
|
Takeoff thrust (x2) |
15,144 lbf (67.4 kN) |
|
Range |
5,300 nmi (9,816 km; 6,099 mi) |
|
Cruise speed |
Mach 0.85 – Mach 0.90 (488–516 kn; 903–956 km/h; 561–594 mph) |
|
Max. operating speed |
Mach 0.925 (531 kn; 983 km/h; 611 mph) |
|
Ceiling |
51,000 ft (15,545 m) / Cabin Altitude 4,850 ft (1,480 m) |
In conclusion
From these figures, it shows that if you are a private owner who will fly less than 200 hours per year, it is not very cost-effective to own a Gulfstream G500. Variable costs for maintaining and operating a private jet are considerable as well as the fixed costs and the initial purchase price. Depreciation in the aircraft’s value is also not covered.
The more you fly and the more you charter, it makes sense financially but then the aircraft may not be available when you wish to use it and may not stay in pristine condition. It is always worth talking to a private jet advisor when buying an aircraft to find out what the best options are.