Rent or buy a private jet: which one should you choose

Do you want to buy or rent a private jet because your mode of transport lends itself to it? Our team of business aviation experts brings you all the elements to take into account to decide to take the step.

The 2008 crisis strongly affected the business aviation market. The number of personal planes or private jets for sale had increased significantly, representing more than 20% of the global fleet. As the crisis has affected travel budgets, companies have turned to more economical solutions such as on-demand rental of private planes.

In 2021, 20,000 private jets are available worldwide. Half of these jet planes belong to airlines and the other half to private owners, so a balance is respected. The current economic climate offers interesting buying opportunities. However, many elements should be observed in detail to determine the benefits associated with the acquisition of an aircraft. And if the profitability is not proven, what are the advantages of renting a private jet on demand.

How to make the choice in relation to its needs, its financial means and its location? Should you buy or rent a private jet?

Buying a private jet: why?

Purchasing a private jet for sale allows you to have full ownership and thus have complete freedom in using your aircraft when and where you want. Your private flight is subject to less restrictive regulations than when renting a private jet, which must meet the criteria for Public Passenger Transport.

From turboprops to business jets to regional jets, there are as many types of aircraft as there are destinations. You must first determine your needs:

• What are the places you go to and the distances between them?
• How long are you staying there?
• How many passengers do you usually have on board your planes?
• Are there any restrictions on the lands where you land?
• Are you traveling with bulky luggage?

There are many ways to acquire a private jet and new ranges of aircraft offer different advantages in terms of speed, passenger carrying capacity and range. It is therefore essential to clearly define your needs to acquire a private jet at the best price.

Renting a private jet is much cheaper than buying it. You will need a few thousand dollars to charter a private jet. Renting therefore allows you to avoid a substantial investment which may prove to be unprofitable. Renting a plane also offers great flexibility. For each flight, you can choose the most suitable aircraft for your flight time and the number of passengers.

Because flying should be a pleasure, you will also be able to rent a private jet according to very specific needs in terms of comfort. It depends on the model but also on the private jet manufacturer you choose: Bombardier, Beechcraft, Cessna, Dassault Aviation, Embraer, Gulfstream Aerospace etc.

Consult our private plane page to understand precisely all the stakes of the rental.

There are many parameters to take into account when choosing between buying and renting. Let's focus on three key factors to understand the issues.

It is essential to clearly distinguish the regulation of a flight in Public Transport from a flight in Private Transport.

Chartering an airline-owned aircraft subjects passengers to public transport regulations. Any private jet operator providing a global air transport service must obtain its Air Carrier Certificate (CTA or AOC in English). Public Passenger Transport is based on the following main elements:

Operational constraints: public transport implies the application of a greater safety margin concerning the technical performance of the aircraft when landing for a public flight than for a private flight. Thus, a private jet whose capacities are certified by the air authorities to land on a runway of 1,000 meters can only land on a runway of 1,600 meters under the public transport regime.

Crew qualification: the pilots have the ATPL (Airlines Transport Pilot License) giving them all the knowledge and skills necessary for public passenger transport. It is the assurance of having a qualified pilot and of flying in complete safety.

Aircraft maintenance: maintenance and inspections of aircraft under AOC and belonging to airlines are carried out only by approved workshops (part 145) and on a more regular basis than for an aircraft belonging to a private owner.

These 3 constraints are to be taken into account in a positive way. These leasing requirements allow for greater safety and safer aircraft than a fully owned private aircraft. However, you will not benefit from all the freedom and autonomy offered by the purchase of an aircraft.

No limitation on the autonomy of the device

Depending on your business trip, in Europe or for an overflight of the Atlantic, choose the plane that best meets your needs for the trip. Indeed, a Phenom 300 will be enough to make a trip to Paris – Marrakech non-stop, on the other hand to go to New York directly, you can charter a Global Express.

Unlimited number of passengers

Private jet charter gives you access to a large fleet of planes. You can alternate between different private jets:

Turboprops like the Pilatus PC-12 to access as many airports as possible.

• Light private jets like the Citation Mustang.
• Mid-size private jets like the Challenger 350.
• Long-haul private jets like a Gulfstream G550 or a Boeing 737 VIP

Each airport has its own characteristics: very short runways, specific pilot qualifications for landing in high-risk areas such as mountain airports for example. By renting a private jet, an expert will accompany you in chartering your business flight to get you as close as possible to your destination.

Access an aircraft wherever you are in the world

With the rental, you will always find a solution to go to your professional meeting or go on vacation. There are over 1,500 airlines worldwide offering on-demand rental service.

By buying an aircraft, for various reasons, you will not always be able to have your aircraft.

Let's take an example: you live in London and you have to go to France urgently. Following a breakdown of your plane or the unavailability of your crew, you decide to go to Paris by Eurostar. You must have a second meeting during the day in Maastricht and return to London the same evening. With the rental of an air taxi, the aircraft will be ready directly at Paris airport to get you to Maastricht without wasting time and at a lower cost.

Generally speaking, renting a plane gives you more freedom. However, over the summer period, private aircraft rentals are on the rise. Sometimes charter prices increase and there is a shortage of aircraft available.

Before buying a new, luxury or pre-owned private jet, ask yourself several questions. What size plane do you want? Indeed, its capacity to accommodate the number of passengers is an important element. You also have to ask yourself what use you want to make of your jet. For what type of distance do you need it? Regular flight? Long distance ? Short trip? In fact, a small plane will have to stop more regularly to refuel. If you are looking to save time over a long distance, you will therefore have to choose another model. Conversely, the operating cost of a large device will be higher. So if your flight time is on the short side, factor that into your jet selection. Then it is also possible to get a used private jet to reduce the purchase costs. You will then need to know the number of flight hours of the model you like as well as the number of its landings. Finally, do not forget that a private plane requires maintenance. It is above all this expense that you will have to evaluate for the year. Added to this are additional costs such as insurance, safety inspections, fuel costs, pilot and crew salaries, etc.

Phenom 100: private jet from the manufacturer Embraer

Features :

. Cruising speed: 720 km/h

. Maximum distance: 2200 km

. Cabin size: 3 m long – 1.37 m high – 1.40 m wide

. Category: Very Light Jet (LVJ) – 2 pilots with 4/5 passengers

New one: from 3.581 million euros

Phenom 300: private jet from the manufacturer Embraer

Features :

. Cruising speed: 720 km/h

. Maximum distance: 3600 km

. Cabin size: 5.23 m long – 1.50 m high – 1.55 m wide

. Category: Light private jet – 2 pilots with 5/6 passengers

New one: from 8 million euros

Citation Mustang: private jet from the manufacturer Cessna Aircraft

Features :

. Cruising speed: 630 km/h

. Maximum distance: 2160 km

. Cabin size: 3 m long – 1.37 m high – 1.40 m wide

. Category: Very Light Jet (LVJ) – 2 pilots with 4 passengers

New one: 2.94 million euros

Challenger 350: private jet from the manufacturer Bombardier

Features :

. Cruising speed: 850 km/h

. Maximum distance: 5926 km

. Cabin size: 8.72 m long – 1.86 m high – 2.19 m wide

. Category: Super-intermediate private jet – 2 pilots with 9/10 passengers

New one: 20 million euros

Global 7500: private jet from the manufacturer Bombardier

Features :

. Cruising speed: 1150 km/h

. Maximum distance: 14300 km

. Cabin size: 12.4 m long – 1.88 m high – 2.41 m wide

. Category: Long-haul private jet – 4 crew members with 16 passengers

New one: 60 million euros

With high speed, a modern and comfortable cabin, it is one of the best sellers on the market. We recommend this 5-seater jet with a range of 2,000 kilometres, for quick business trips over short distances. The purchase price of this private jet is around 5 million euros, which is relatively affordable. This price must however be compared with the frequency of use. Expert calculations show that it is necessary to fly at least 400 hours per year for the aircraft purchased to be profitable. If your flight frequency is around 450 hours per year, there is no doubt that buying a private plane can be a good operation.

In addition, if your trips last more than 2 nights, it is more profitable to buy a business jet than to rent it. For airlines, an aircraft on the ground costs twice as much as in flight: parking space, crew to accommodate, aircraft unavailable for other customers. On trips of more than 48 hours, air operators generally choose to return the aircraft to its base. The customer must then pay for a double rotation. Being an owner avoids all these inconveniences. Your plane stays at your place of stay in a hangar, without the need to join other passengers.

Do not forget that many costs are to be taken into account and that the depreciation of the device is comparable to that of a car. Costs related to aircraft upkeep, crew, fuel, maintenance, landing/take-off taxes, parking are added to the price. In addition, the depreciation of private jets is rapid. New air safety rules, technological developments and the number of flight hours have a strong influence on the price. After 5,000 flight hours, the price of the aircraft decreases sharply due to wear and tear on the aircraft.

Finally, another solution is available to you: the purchase of a second-hand aircraft. If you are interested in this model but it is still too expensive for your budget, its second-hand purchase price can go down to 1.6 million euros.

The market for second-hand aircraft, including helicopters, airliners and business jets, is diversifying. In 2016, more than 700 second-hand business jets were sold. But then how low can the prices of used personal aircraft go? Here is an idea.

Gulfstream G650ER

New one cost: from 53 million euros

Used one cost: from 35.28 million euros

Cessna Citation Longitude

New cost: from 20.58 million euros

Used cost: from 13.95 million euros

Airbus ACJ 319 Neo

New cost: from 75.6 million euros

Used cost: from 50 million euros

Boeing 747-8

The base price of the model: 300 million euros

Transformation: 168 million euros

Used cost: from 312 million euros

Dassault Falcon 2000LXS

New cost: from 16.8 million euros

Used cost: from 11.2 million euros

So, although they are pre-owned, second-hand private jets are still expensive. In addition, they depreciate very quickly due to the safety regulations to which they are subject. It is estimated that after 10 years, a business aircraft is almost worthless. It is therefore necessary to pay attention to the announcements of used private jets and to ensure that the model still meets the standards.

How much does a small new private jet of the Phenom 100 type cost?

• Price is of around 5 million euros.
• Annual depreciation of 800,000 euros per year.
• Operating cost of approximately 150,000 euros per year including crew salary, maintenance, parking costs, costs associated with third party liability, costs related to repair and renovation of the interior and the cost of insurance.
• Unforeseen incidents requiring intervention: approximately €50,000 per year.
• Total annual costs: 1 million euros.

In addition, your aircraft is under maintenance every 6 months, for 15 days, i.e. 1 month in the year. If you want to move at this time, you will need to use a broker to rent another device.

These costs vary according to the flight range of the private jet and therefore its size.

For comparison, the price of renting a light private jet and the price of flying a Phenom 100 are around €2,500/hour. For a one-way Paris le Bourget-Mykonos, it will cost €10,000 with this type of business aircraft.

To amortize the annual costs, it is necessary for the aircraft to fly more than 400 hours per year. Below this number of hours, the costs are too high and do not justify the purchase of a private jet.

Do you want to limit the costs of buying a private jet?

There are two alternatives that you can consider:

Become a rental company

You have the option of becoming a rental company yourself. This gives you the opportunity to optimize the costs of owning your aircraft. All you have to do is entrust your aircraft to a private airline and place the aircraft under an Air Transport Certificate (AOC). The private jet rental market being very dynamic, renting your aircraft smoothes the costs of using and maintaining the aircraft.

 Buy in shared ownership

Considered an alternative to buying, shared ownership, invented by Netjets, allows the costs of use to be shared among several owners. You can therefore pay for one or more shares of an aircraft and then benefit from flight hours depending on the shares you have in the aircraft. It's a great way for companies to travel by private jet with a low upfront investment.

Rent a private jet at the last minute at a knockdown price

The empty flight, or "empty leg", is an ideal solution for traveling by private jet at an unbeatable price with a reduction of more than 70% of the classic price. However, this type of private flight has certain limitations such as last-minute availability and imposed schedules.

As a result, while owning your own plane is satisfying, it's not the most economical solution. The high depreciation, personnel costs and maintenance costs are a significant barrier to purchase. In addition, the property strongly limits the range of possibilities in terms of tailor-made and specific needs.

Chartering a plane on demand therefore seems to be the most economical solution for professional travelers and wealthy people. It provides perfect flexibility and a completely tailor-made solution.

This is the reason why a large number of travelers prefer to rent a private jet rather than owning one.

Are you looking for a particular jet? This is the challenge that Air.One takes up every day by offering their users to find a jet that is just right for you. For more information on the procedures to follow, see our marketplace and showroom. 

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