How much does it cost to own a corporate jet?

less than 1m read

·Nov 3, 2024

If you have a small jet, it's going to cost you about a million bucks a year. If you have a large cabin, it's going to cost you 2 million bucks a year. And if you have an ultra-long-range airplane, it's going to cost you 3 million bucks a year. That's based on 400 hours a year.

You can cut that cost a lot because if you only fly 200 hours a year, you can rent the airplane out the other 200 hours, and it could reduce your fixed cost considerably. You will never rent it out enough to fly for free because if you rent it out enough to fly for free, the airplane has to fly too many hours to be available to you.

It's not how much you can earn before you can own an airplane. Is a million dollars in cash flow going to transportation something that your company can afford, and will it help you benefit and expand? That's the question.

By the way, we're talking about jets. You can get a little single-engine airplane that's going 200 to 230 mph. If you're in a regional area where you need to see clients, you can get away with nothing. A couple hundred or $500 for a twin engine an hour to run those things, and all of a sudden, it becomes much more conceivable to actually buy a corporate airplane. It doesn't have to be a jet.

The Jet Business Bloomberg Editorial March 2012

Generation Plastic | Plastic on the Ganges

View All

Chaos: The Science of the Butterfly Effect

Part of this video is sponsored by LastPass. More about LastPass at the end of the show. The butterfly effect is the idea that the tiny causes, like a flap of a butterfly’s wings in Brazil, can have huge effects, like setting off a tornado in Texas. Now …

Excavating a Burial Painting | Lost Treasures of Egypt

It’s a breathtaking moment for me in the sands of the necropolis. Bassem has made an incredible discovery. So what we are looking here is one fragment of a mummy portrait that is painted with the wax, the encaustic technique. Greek artists from Alexandri…

Introduction to one-dimensional motion with calculus | AP Calculus AB | Khan Academy

What we’re going to do in this video is start to think about how we describe position in one dimension as a function of time. So we could say our position, and we’re going to think about position on the x-axis as a function of time. We could define it by…

Exclude | Vocabulary | Khan Academy

Hey wordsmiths! I would never dare leave you feeling left out, so I want to warn you that the word we’re discussing in this video is “exclude.” Exclude is a verb; it means to keep someone or something out, to prevent access. It can have a bad connotation …

Introduction to the Vedic Period | World History | Khan Academy

First civilization that we have evidence of around modern-day India and Pakistan is the Indus Valley Civilisation. It’s right around the Indus River in modern-day Pakistan and Northwest India. In other videos, we talked about how it really comes into bein…

Overpopulation & Africa

For most of our history, the human population grew slowly until new discoveries brought us more food and made us live longer. In just a hundred years, the human population quadrupled. This led to apocalyptic visions of an overcrowded earth. But the popula…

How much does it cost to own a corporate jet?

More Articles