Summary
- A brand-new G500 can cost an owner around $45M when bought directly from the manufacturer.
- A G500 could go for approximately $42M in the pre-owned market, offering a more affordable alternative.
- Operating costs for the G500 amount to around $6,688.63 per hour, while chartering the jet costs about $9,500.
The G500 is one of the most famous private jets made by Gulfstream Aerospace. It is so popular that its name has even been featured in songs like Mama Look At Me Now by Galantis, a Swedish electronic music group. Planespotters worldwide have most likely all already seen its iconic T-tail design and stylish round windows, which the company claims to be some of the widest available on the market today. Speaking of the market today, let’s look at how much a G500 would cost to acquire. We will examine two main market segments: the price of owning the jet outright and how much it would cost to charter out on a typical long-haul flight.
Owning a G500, how much does it cost?
Brand New
Two ways of acquiring a G500 are buying a new aircraft outright (or on loan) and heading to the pre-owned market. In this subsection, we will look at the former option. Most private jet owners avoid buying new models from OEMs as it is the most expensive option. However, Ultra High Net Worth Individuals travel to airshows and reserve meetings with OEMs to look for their latest rides.
In that case, according to the Private Jet Cards Comparison website, a brand-new G500 ordered straight out of the final assembly line in Savannah would cost a prospective owner around $45M.
While the G5 is based on the vintage G-IV aircraft line and has a similar shape, similarities end here. The jet is a super-improved version with two fuel-efficient Pratt & Whitney Canada PW814GA engines and an improved range of 4,500 nautical miles.
One key advantage of buying an aircraft new, like for cars, is fully customizing the interior to the client’s needs. This makes the jet more personal and tailors it to their precise usage.
Pre-owned.
Photo: Gulfstream Aerospace
The second and by far the most typical way to get your hands on a G500 is to head to the second-hand market, which in the industry is referred to as pre-owned. There are several ways to go about this: one would be to contact a broker like Global Jet, while the other would be to head to the manufacturer’s pre-owned website or a dedicated second-hand marketplace.
At the time of writing, a pre-owned G500 wasn’t available on the manufacturer’s website, but looking at other jets, we can see that Gulfstream is quite transparent when it comes to price listings. A G550 with 4,774 hours is going for USD 17,900,000.
The specialist market space Controller.com shows that a newer G500 built in 2019 goes for an asking price of around $42M.
What are the operating costs?
Photo: Noah Cooperman | Simple Flying
According to ACC, the average price for a pre-owned GULFSTREAM aircraft with document number 1 is $42,500,000. A loan of $19,000,000 over 120 months, including $X per month in interest, equates to a $952,730.58 per-period payment. Based on 450 annual owner-operated hours and a fuel cost of $6.00 per gallon, the GULFSTREAM with document number 1 has total variable costs of $1,798,200.00, total fixed costs of $1,211,683.00, and an annual budget of $3,009,883.00. This breaks down to $6,688.63 per hour.
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How much is it to charter the jet?
With a seating capacity of up to 13 passengers, this long-range, large private jet can be very useful for private individuals traveling with an entourage or for corporations to move executives together to offices and meetings worldwide. However, with such a steep acquisition cost, it can be understandable why most would be reluctant to own the jet outrights.
Besides, owning a jet is only helpful if it is flown enough – if individuals or corporations look only to fly private a few times a year, it would be an unuseful investment. Luckily, being such a popular model, it is relatively easy to charter. Several websites like XO Jets or Paramount Business Jets allow prospective customers to request a quote for the aircraft.
The former company’s blog page suggests the charter cost of the aircraft is around 9500 dollars an hour. Using this figure for a 7-hour flight between Paris and New York, the total cost would be around $66000. Granted, this is expensive if traveling alone, but if all seats are occupied, it boils down to around $5115 per head. It is much cheaper than a lot of commercial business class offerings.
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Five Unique Features On The Gulfstream G500
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Bottom Line
The Gulfstream G500 can cost around $45 million when bought new, and about $42 million in the pre-owned market. Operating costs are approximately $6,688.63 per hour. Chartering the jet costs around $9,500 per hour, making it a good option for those who don’t want to own one outright. There are therefore multiple ways to benefit from this aircraft, which costs varying depending on what you intend to do with the aircraft.
What are your thoughts on the characteristics of the Gulfstream G500? Share your views in the comments section.