Buying a private jet! 10 Questions to Ask

Do you dream of experiencing the freedom and flexibility of a private jet? Buying a private jet is a big decision that requires careful planning and consideration. With thousands of private jets flying around the world, there’s something for everyone. But where do you start?

This guide will help you create your own profile and answer crucial questions so you can make an informed choice. From determining your budget and passenger needs to considering the interior and range, we cover all the important aspects.

Whether you’re a seasoned business traveler or want to surprise your family with a luxurious vacation, this guide offers valuable insights into the world of private jets. We discuss the costs, from the purchase price to the annual expenses and flight hour costs. The pros and cons of buying a new or used private jet are also discussed, as well as the possibility of creating a business case around your aircraft.

In short, this guide is your starting point for realizing your dream of a private jet. Read on and discover everything you need to know before you take the plunge!

1. What is the Budget and the Private Jet Price

How much does it really cost to buy a private jet? The purchase of a private jet is above all determined by your desires and your needs. However, costs will be added to your transaction as well (ferry, registration changes, import, VAT etc.) and these will also determine your final budget needed. Next to this you also need to consider the regular cost for maintenance, insurance, fuel costs, parking and landing fees etc. before you make a purchase and a yearly budget.

A private jet is quickly labeled as unaffordable but is that right? You can buy a 4 seater “entry level” model on the second hand market for less than € 700,000. Of course, these are usually the somewhat older models on the market, these aircraft often need some mandatory updates to bring them up to today’s standard. The top among the “common” private jets is at a whopping €56 million euros. Above that, of course, there is another segment such as the Boeing Business Jets etc. 

Cost of Buying a Private Jet

Basically, you need to identify 3 types of costs next to the purchase price. The implementation costs, the annual costs and the hourly costs. 

The cost of a private jet depends on a number of factors, such as the type of aircraft, its age, its equipment, and market conditions. In general, you can expect the following costs when buying a private jet:

• Purchase price: This is the private jet price. It can range from a few hundred thousand euros for a small, older model to tens of millions of euros for a luxury, new aircraft.
• Implementation costs: These are the costs incurred to put the aircraft on the registration you want. This includes, among other things, the pre-purchase inspection, the ferry costs to fly the aircraft over, the import, the operator implementation, a transfer fee of the programs (engine, airframe, avionics). Costs for setting up a company, escrow fees, etc. are also included.  
• Annual costs: These are the costs that you spend annually on owning a private jet, regardless of whether you fly with it or not. These include, among other things, the salaries of the pilots (unless they are hired on a freelance basis), training, hangar rental, maintenance management, insurance, aircraft management, subscriptions, etc.
• Flight hour costs: These are the costs you incur per hour that you fly with the private jet. These include, among other things, fuel, maintenance, parking and landing fees, aircraft programs, handling, navigation, crew travel including hotels, catering, etc.

The price of buying a private jet depends on many factors. It is important to be well informed about the different options and costs before making a decision.

In our blog “buying your first aircraft” we take you step by step through the process of buying a plane. We discuss topics such as choosing the right type of aircraft, finding a reliable seller, negotiating the price and arranging financing.

2. How many Passengers will Join on the Private Jet

Whether your private jet is used for business travel or for private missions, the number of passengers you plan to fly with on a daily or weekly basis will determine the size of aircraft you need. If you fly once a year with your full team of 15 people and the rest of the year with only 4 persons, then it is best to buy a smaller aircraft and rent a larger one when you need it. It would be a waste of money if you fly with too many empty seats on every flight.

3. Will the Private Aircraft be used for Business or Private Operations?

As we noticed previously, determining your travel needs is essential before buying a private jet: as with the number of passengers it is important to know if you only use it for business flights with customers or for your family. This will not only determine the size and type of private jet you will buy but also the VAT/TAX implications.

4. Do you have Requirements Regarding the Interior?

Do you need a toilet, bathroom, entertainment system, galley, stand-up cabin, bed, etc? Again, it will all depend on why you want to buy a private jet. For business trips, will your private jet be used to organize meetings? If so, how much interior space will you need to comfortably perform these interactions? For leisure trips, will your private jet be used to welcome your family? If so, how much interior space will you need to comfortably perform these trips?

5. What Range must the Private Aircraft be Capable of Achieving?

Do you want to travel around the world aboard your private jet? Going to New York for a meeting with your investors or new clients? Or do you just want to reach nearby and only European destinations? Go to your second home in the south of France for example? The range of the aircraft will again depend on your travel needs and will determine the size and type of your next private jet.

6. What are Your Typical Destinations?

Private jet travel often allows access to smaller, more conveniently located airports closer to your final destination. This can significantly reduce travel time. However, it’s crucial to verify that the runway length at your preferred airports is sufficient for the type of private jet you intend to purchase. Confirming runway compatibility early in the process will prevent future limitations.

If your travel is primarily within Europe, selecting an aircraft optimized for European flights may be the most cost-effective choice. While intercontinental trips might occur occasionally, purchasing a long-range jet solely for those infrequent flights could result in higher operating costs for your more frequent European travel. We can help you analyze your typical flight patterns to determine the optimal balance of range and cost.

7. How often do you fly per year?

The number of flight hours per year is a crucial factor when deciding whether to purchase a private jet. It is important to map out your personal needs, lifestyle and flying habits before considering such an investment.

• Frequency: How often do you plan to use the aircraft? Are you a frequent flyer or is it just a few times a year?
• Purpose: What will you use the private jet for? Business, private or a combination of both?
• Distance: Are you planning short flights within Europe or long-haul flights to other continents?

In general:

• Less than 50 flight hours per year: In this case, it is often more cost-effective to charter a private jet when needed.
• Between 50 and 200 flight hours per year: Owning a private jet can become attractive, depending on your specific situation and needs.
• More than 200 flight hours per year: With such intensive use, owning a private jet is often the most efficient and cost-effective solution.

Take the time to analyze your flight pattern and get well informed before making a decision. A private jet is a significant investment and it is important to make the right choice that suits your needs.

8. Buying a New or Used Private Jet?

So, should you opt for a new or used private jet? The purchase of a new private jet is by nature much more expensive than a second-hand private jet. But in some cases, a used private jet can cost you more in the long run. Interestingly, most of our customers inquire about used aircraft, which for the most part are not really the original ones anymore by the many upgrades they received. They must comply with strict regulations, standards and be updated regularly which will cost additional money in the end.

However, in some cases, a used private jet can cost you more in the long run. Interestingly, most of our customers inquire about used aircraft, which, due to the many upgrades, are no longer really original. Used aircraft regularly need an upgrade which will ultimately cost extra money.  

Want to know more about the pros and cons of buying an older private jet? Then read our article: Why do buyers still opt for older private jets?

When buying a used private jet, it is crucial to understand the seller. Why do they want to sell the plane? What is the history of the plane? Are there any known problems or maintenance needs? By asking these questions and understanding the seller, you can get a better picture of the value of the plane and whether it meets your needs.

Want to know more about why a seller is considering selling their used private jet? Then read our article: When should I consider selling my private jet?

9. Your Private Jet: Commercial Operation or Private Use? (AOC)

Are you considering commercial operation of your private jet? An Air Operator Certificate (AOC), issued by the Civil Aviation Authority (CAA), is required for commercial flights. This allows you to utilize your aircraft when not in personal use, potentially offsetting some of your investment. Learn more in our blog post “Achieving ROI on your aircraft.“

Prefer private use? A robust safety framework is crucial. Our article “Buying a private jet as a private owner/operator” covers the key aspects of private ownership and operation.

10. Where will you register your private jet?

Registering your private jet is an important step. Every aircraft must be officially registered, and it is crucial that this is done in a registry that meets the highest safety requirements and regulatory standards. After all, safety comes first.

An aircraft can only be registered in one country at a time. The choice of registration country is therefore a well-considered decision. In addition to safety considerations, other factors also play a role:

• Discretion: Some offshore registries offer more discretion than others.
• Tax benefits: There may be tax benefits associated with registration in certain countries.

Popular jurisdictions: Certain countries, such as Bermuda and the Cayman Islands, have long been popular choices for the registration of aircraft from all over the world. More recent options include Aruba, San Marino, Guernsey, Malta and the Isle of Man. Each of these jurisdictions has its own advantages and disadvantages.

It is advisable to thoroughly inform yourself about the various registration options and the associated conditions before making a decision. A specialized advisor can help you make the right choice based on your specific situation and needs.

Are you looking to buy a private jet?

Have you carefully considered and answered the questions above? Then it is now crucial to seek expert advice on the type of aircraft that best suits your specific needs. We strongly recommend that you hire a professional aircraft broker.

Can you already picture it… your own private jet? Don’t be discouraged by the complexity of the matter. We understand that it can be overwhelming to evaluate all aspects yourself. That’s why we are here for you!

What does an aircraft broker do?

A professional aircraft broker takes all the work off your hands and:

• Analyzes your needs: They fully map out your needs, budget and travel plans.
• Identifies the best options: They select the aircraft that perfectly match your criteria.
• Guides you through the entire process: From the initial selection to the final purchase, they assist you with advice and assistance.

Contact us today!

Are you ready to make your dream of a private jet a reality? Or would you like more information about the possibilities? Please feel free to contact us at sales@faaircraftsales.com or call us at +31 (0)15 820 0999. We are happy to help you!