Understanding Private Jet Costs and Programs
May 31, 2022
Private jet pricing can vary considerably according to many factors – and that’s without specifying model or cabin class. Acquiring an aircraft for your personal or business purposes is an important decision. The larger the stake in ownership; the larger the capital commitment required. That’s easy-to-follow logic.
Although there are several components that can influence your total private jet cost, your specific needs are most prominent among them. Schedule flexibility, common missions, and anticipated flight hours per year may also help gauge which access model is ideal for you. Each program or level of jet access has unique stipulations and features, depending on the provider.
So, how much does a private jet cost?
First, it’s important to understand the most accessible modes of private jet travel today, given the record-high demand for service over the past two years:
- Fractional Ownership
- Leasing or Access
For additional context on these programs, we have outlined some expected cost and program variables that could make all the difference in curating your next private travel experience.
Fractional Ownership Pricing
Fractional ownership can be one option that is especially appealing to frequent flyers, who may have considered owning a whole aircraft but are looking for lower and more predictable costs. Fractional shares commence at 50-hours of operation per year and range up to 800-hours.
The advantage of knowing an aircraft will always be available at short notice, should not be understated. When you want to fly, your aircraft is ready within 10 hours. It’s a model that might be helpful to think of like a jet timeshare.
Although every provider is different, is there a way to calculate what costs to expect upfront? For additional context on pricing logic, we have provided a helpful use case on fractional ownership costs.
If you decide to purchase a 1/16 share (typical use case) in a specific private aircraft for up to a 5-year term (typical use case), there are some payments to cover. Initial payments within fractional ownership are weighted around what sort of share you buy. So 1/16th of the total 800-yearly operating hours for an aircraft is 50-hours. That fractional stake (1/16) in hours is then applied to the total market retail cost of your selected private jet. This is how your total upfront payment is typically calculated.
A rate structure for a fixed, monthly management fee is then applied. This cost is scheduled at a monthly level or as one annual payment. The rest of the costs associated with your private jet fractional purchase will then be dependent on your amount of hourly flying.
- Hourly Operating Rate
- Hourly Fuel Charge
- Hourly Fuel Surtax
In the end, fractional jet ownership represents a premier opportunity to exercise a maximum amount of control on your aircraft and travel flexibility. If you’re going to be committing to more than 50-hours of travel per year, fractional ownership may prove to be a more cost-savvy move in the long run. The fractional ownership model helps you avoid higher annual costs associated with the premium of lease payments or all-in hourly charter models.
Lease Program Pricing
For our purposes, it may be helpful to think of leasing a private jet as being similar to leasing a new car; with the option to sign a lease from several months to several years. This model can be an attractive option to help reduce initial capital outlay while minimizing the risk of asset ownership.
Private jet leasing is also a great way to test out aircraft ownership before making the full investment. Because lessors don’t own the jet, they don’t have to deal with depreciation or reselling a plane if they decide to upgrade to a new model.
The pricing components of a private jet lease are nearly identical to that of fractional ownership, but with one key difference. Private jet lease models require a monthly lease payment. This premium rate can result in a greater all-in annual private jet cost.
Similar to most modes of private travel, the option to lease an aircraft becomes more attractive when your annual travel needs exceed a certain threshold or when the availability of charter aircraft may be limited. Leasing a private jet provides the ability to have direct control over the aircraft and its availability while also assuming the responsibilities of operational control.
To discover what private aviation model is best for you, please consult our Runway Guide blog series which examines each mode of access from a pricing and logistical lens. Our team of aviation experts can further provide you with everything you need to make a truly informed decision in this space.
For more about our specific Flexjet programs and availability, contact our team via our website
or call us at (866) 473-0025.