Vilma Vaitiekunaite, CEO of Skyllence, brings extensive expertise in aviation communications and leadership to her columns. With a background in corporate strategy, public relations, and crisis management, she has shaped global aviation narratives, including as Chief Communications Officer at Avia Solutions Group.
At Skyllence, Vilma drives growth and fosters partnerships while ensuring excellence in air charter services.
The views and opinions expressed in this column are solely those of the author and do not necessarily reflect the official policy or position of AeroTime.
The most common question friends and clients ask me is, “Should I buy an aircraft, or is chartering the better option?” This is especially frequent among those who travel privately often and are considering the convenience of owning their own plane. While the idea of ownership may seem attractive for frequent flyers, my advice almost always leans toward chartering. It offers unmatched flexibility, cost-efficiency, and freedom from the long-term liabilities associated with owning an aircraft. Below, I explain why chartering a private jet is often the smarter investment choice.
Cost efficiency
- Lower initial and recurring costs: Purchasing a private jet involves an upfront cost ranging from $3 million for a small jet to over $100 million for long-range models, along with annual maintenance, crew salaries, insurance, and hangar fees that can total $700,000–$4 million annually. Chartering, on the other hand, avoids these ownership costs, with typical hourly rates between $2,000 and $15,000 depending on the aircraft type and destination.
- Depreciation avoidance: Aircraft depreciate significantly over time, often losing 10-15% of their value annually. Owners must also contend with reduced resale values, making ownership less attractive as an investment.
Flexibility and variety
- Access to diverse aircraft: Chartering allows you to select the most suitable jet for each trip, from small turboprops to large intercontinental jets. Ownership ties you to one model, which may not suit all travel needs.
- Scalability: Chartering is ideal for occasional or variable travel needs, ensuring you pay only for what you use. Ownership, by contrast, requires full commitment to fixed costs regardless of utilization rates.
Operational ease
- Simplified logistics: Jet owners must manage staffing, compliance, and maintenance, which can be time-consuming and costly. Chartering eliminates these burdens, as the operator handles all operational aspects.
- Cost predictability: Chartering offers transparent pricing, avoiding unforeseen expenses like unexpected repairs or fuel price spikes common in ownership.
Strategic investment benefits
- Liquidity preservation: Chartering frees up capital that would otherwise be tied up in a depreciating asset, enabling investments in higher-return ventures.
- Risk mitigation: Ownership exposes you to market risks such as fluctuating operating costs and demand shifts in the aviation industry. Chartering shifts these risks to the operator.
From an investment perspective, chartering a private jet provides superior cost efficiency, operational flexibility, and reduced financial risks compared to ownership. It is the prudent choice for those seeking luxury and convenience without the hefty financial and logistical burdens of owning a jet.