While it is easy to see the benefits of having a private jet that you can use whenever you want, everything comes at a cost, and there may be a better option. When traveling by private plane, you can decide when to depart and avoid all the hassles of traveling commercially. You can also fly in and out of smaller airports closer to your home or your destination.

In this article, we looked at the five most common costs of private plane ownership: the initial cost of the aircraft, maintenance and operating expenses, pilot salary, hangar space, and insurance.

Purchase Price

Private jets can cost anywhere from $3 million to $100 million, depending on features and how they are configured. Purchasing a second-hand private jet is less expensive, but you may need to upgrade its equipment and pay for costly maintenance.

If you decide to go the pre-owned route, calculate all the costs of having the plane customized to suit your taste and whatever maintenance work is required. Also, getting the job done can often take months, so be prepared to wait awhile before finally taking to the skies.

Maintenance & Operating Costs

Like every form of engine-driven transportation, ownership involves maintenance costs. Aircraft, like cars, need regular maintenance to ensure they operate smoothly and are safe.

One of the most significant operating costs is, of course, aviation fuel.

Assuming that a gallon of jet fuel is $5:00, you can expect to pay the following cost per hour depending on the size and type of jet:

  • A light jet can cost as much as $1,100 per flight hour.

  • Depending on the plane's size, a midsize jet can cost as much as $1,500 to $1,90 per flight hour.

  • A larger jet can cost as much as $2,700 per flight hour.

Depending on which airport you fly to, you will be charged a landing fee depending on the aircraft's weight. Using Teterboro Airport in New Jersey as an example, planes that weigh 12,000 lbs or less pay a landing fee of $22.50. Aircraft that weigh over 12,000 lbs and up to 80,000 lbs cost $3.15 per 1,000 lbs. Planes weighing more than 80,000 lbs pay $5.85 per 1,000 lbs.

While at the airport, you will also pay for FBO ground handling and the use of the terminal building.

Pilot Salary

It is less expensive to fly an aircraft rated for a single pilot. However, this has two disadvantages: planes that fall into this category generally have a shorter range than aircraft that need two pilots to fly them. Also, having two pilots in the cockpit is much safer. 

Pilot salaries are based on experience and rank and can range anywhere from $86,000 to over $300,000. In the United States, the average salary for a private jet pilot is $131,000 per year. When traveling by private jet, you must pay the crew's accommodation and living expenses while away from their home base.

Hangar Rental Space 

When someone purchases a private jet, it is a considerable financial investment they will want to look after. When the aircraft is not in use, you must rent space at the airport to store it. While an outside tie-down is an option, it is not a good idea. Over time, planes left to the elements will start to deteriorate, and the paintwork will begin to fade and look dull, as will any manufacturer's decals. With the aircraft parked outside, you also risk being damaged due to hail and ice. 

This means you are better off having the aircraft parked in a hangar. The price you will have to pay for hangar space will depend on whether or not the airport is in a rural location or a place like Teterboro Airport (TEB) across the Hudson River from Manhattan. While hangar rents are always negotiable, you are still looking at thousands of dollars a month to park the plane.

Insurance

Like all forms of insurance, private jet insurance has multiple options depending on what you consider essential and what you do not need. You also have to remember that insurance companies base their quotes on all factors, such as the state you reside in and where the plane will be kept. The plane's age and, the pilots' experience operating it, and how often you will be using it. When insuring a private jet, you can expect to pay anywhere from $10,000 to $500,000 annually.

Even when you own a private jet, there will be times when you need to fly to a destination you cannot get to in your jet. Or when the plane is undergoing maintenance, you must get to a business meeting.

This is where Paramount Business Jets can help. Tell them where and when you want to go, and they will take care of all the rest. For more information, visit Paramount Business Jets online or call +1-877-727-2538 24/7.

Photos: Gulfstream and Standard Aviation.