The REAL PRICE of Owning a Jet

the real price of owning a jet hallo a Luxor's welcome back for a future billionaires like you it's a good idea to get a handle on some of your future expenses even if those expenses might seem outlandish to the average person but owning a jet isn't out of the reality of everyone so let's take a look at the real expense of owning one so you're prepared when you're in the market for your own jet welcome to a luxe calm the place where future billionaires come to get inspired if you're not subscribed yet you're missing out be sure to watch all the way to the end because we have some turbulent figures you might not be expecting let's get started number one private jets are not cheap however do we actually know how much they go for if you want it straight out of the box a model of the most popular ranges of private jets will cost you in the region of thirty eight to ninety million dollars these will be luxurious but not necessarily have any special custom bells and whistles or upgrades you would get from an already pimped out plane like cars airplanes are similar in that they lose a lot of value right off the showroom floor so if you opt for a pre-owned model you could bag one for somewhere between 14 million to 35 million dollars possibly even with some great extras already added onboard but like with any mode of transportation this is just where the expenses begin number two just like a car a plane needs a storage facility for when it's not in the air most people prefer to not leave their multi-million dollar purchase out in the rain or the Sun so you'll need to find a storage hangar the bigger and busier the airport the more the hangars will cost so a hangar at LAX in Los Angeles for example will chalk up a cost of one hundred and sixty thousand dollars annually a smaller airfield will cost you about eighty thousand dollars a year or you can avoid all of these costs and build your own fully functional to runway Airport like actor John Travolta and wife Kelly Presley did in their backyard of their home more on that in our next video the 10 most expensive private jets in the world number three every time you land you're charged a landing fee by the airport you land act the fee is based on the size and weight of the aircraft because it's to maintain the runways and the airport buildings however at some airports you get free landing if you're refueling there in the case it isn't waived for refueling you're in for a landing fee of between 100 and 500 dollars per touchdown when your jet isn't at home in its hangar it also encouraged charges for parking these are called ramp fees and are charged by the day they vary from airport to airport and of course the busier and bigger airports can charge an absolute premium for space so in some cases it might be more economical to land disembark and fly elsewhere to park at a smaller non-commercial airfield but then again you pay landing fees so your pilot will need to do the math the most expensive airport to land at in the world is Haneda Airport aka Tokyo International here the moment your tires hit the tarmac you'll be billed upwards of seven thousand dollars and that doesn't even include a free airport coffee that's another $10 number for refueling an aircraft is different to topping up your car you can't just put in $20 to get you to your next destination most countries have Federal Aviation Regulations that require plenty of fuel to not only get to your destination safely but allow you plenty of fuel in case you can't land where you're expecting to land and have to fly further in the USA that includes enough fuel to fly to your airport of intended landing and then enough to make it to your declared alternate field and then a further stash to fly another 45 minutes at normal cruising speed so definitely be sure to have plenty of breathing room on your credit card before pulling up to refuel your Gulfstream g650 er these thirsty gas guzzlers take a whopping 7,000 gallons to fill which will take you a distance of 7500 nautical miles of fly the more popular private jets hold a lot less but also don't get as far for example the phenom 300 holds 800 gallons and goes a distance of about 800 nautical miles jet fuel like motor fuel is priced differently at each gas station it varies from $3 to $8 per gallon so it's hard to be precise but if we take an average of 550 a gallon and plan a trip in a Cessna Citation X C 750 with a fuel tank of 7,200 liters or 1,900 gallons and you're flying from Havana to London that's a one-way trip of around 40 100 nautical miles however with the Cessnas tank size you'll have to stop to refuel at Gander International Airport in Newfoundland before you hit the Atlantic crossing after a refuel you're off across the ocean and the total trip will need around 4,000 gallons of fuel so your fuel bill will be around $22,000 number five now you need someone to fly your private jet and run it when you think of owning a private jet I doubt you're thinking of carrying your own luggage bringing a packed lunch and pouring your own drinks that means you'll need to employ quite a crew to make the mile-high life as lush as you imagined and airline crews don't come cheap it's a disruptive lifestyle and requires plenty of special safety training compared to your on ground hotel cleaning our hospitality servers pilots are also a commodity and this is not an area you want to rummage around in the bargain bin for the pilot and crew will have your lives in their hands so employ them wisely luckily you don't require two pilots by law in the same way commercial aircraft do now there are two more costs associated with a crew but a lot more on that later in the video for now we'll tell you an average private jet pilot earns a salary of one hundred and twenty thousand dollars a year and the average annual take-home of a private jet hostess is $60,000 a year number six each time you take off for land you're liable for airport taxes these are imposed by the government municipalities and the company responsible for running the airport then there are usually government imposed taxes calculated per passenger on board when you enter and exit a country you also pay permits taxes and many airports also charge a tourist tax here are some examples flying from Miami to Rio de Janeiro your trip taxes will be international head tax at 18 dollars per person onboard and domestic segment fees of 420 per person and that's not counting all the other taxes and rates we mentioned when you land number seven just like a car a plane needs parts upgraded repairs and regular services costs will vary from aircraft model to aircraft model but they range from $700,000 and climb to a staggering four million dollars just for servicing number eight de-icing a jet is integral and not an area you should skimp on a pilot shouldn't take off if they don't feel the aircraft is completely safe so de-icing can be a last-minute unforeseen expense thankfully most airports globally offer this service but it can cost a lot it's charged per gallon and also the cost will vary from airport to airport but let's say you plan a soiree in Martha's Vineyard which is on the lower end of the price list you best bring at least $200 for de-icing and around $30 if you need preheating done before takeoff in snowy cold regions number nine your jet will need to be insured not only are you going to need to ensure your aircraft against all accidental loss or damage you also need to cover your crew passengers and general public liability on the popular Cessna 172 you'll pay around $50,000 a year for all-around insurance insurance rates increase as the plane ages and flight hours go up but the larger the plane and the greater the payload the higher the premium will go number 10 upgrades and custom Asians are par for the course there is no end to the upgrades you might want to do to pimp out your private jet Donald Trump has customized gold-encrusted Trump branded wall art on his jet Prince Alwaleed bin Talal upgraded his 200 million dollar Airbus a380 to the tune of 300 million dollars adding Turkish baths a garage for two rolls-royce's a concert hall and prayer rooms so when it comes to the cost of all of this well to infinity and beyond number eleven accidents do happen we all know that sinking feeling of unforeseen expenses like a burst tire or a cracked winch and it never tends to happen when you're close to home and you know a great discounted supplier these types of damages are not always covered by insurance so you can expect to have to fork out cold hard cash for these repairs a jet tire replacement costs in the region of two thousand to three thousand dollars but this also varies wildly depending on which country you're in and the exact model windshields will set you back forty five thousand to seventy thousand dollars but again not a place to skimp on and compromise with quality a ping to the side of an aircraft is different from the side of a car when you're traveling at top speed and reliant on minor adjustments and air flow a dent could affect your smooth flight you might not be able to wait until you're home to repair your bodywork and keep in mind you might also need to accommodate yourself and your crew while your jet is being repaired and pay repairs in a foreign currency hopefully you'd be able to recoup the costs from insurance later on of course number twelve crew overnight fees can rack up the bills remember the added cost of crew board and lodging if you plan on staying over at your destination they need to be accommodated Plus earn a per diem on average of $75 per day for their out-of-pocket expenses overnight fees are over and above their usual day rate or salary and range in the region of one hundred and fifty dollars to six hundred dollars a night plus their accommodation ground transport and food costs are all out of your pocket number thirteen cleaning fees are also a part of your cost private jets can't be taken to a local drive-through car wash so factor in the cost of cleaning it inside and out between flights airports offer valet services or you can employ your own team to do the service for you number fourteen so what is the total real cost it's kind of hard to break it down into an exact figure as there are so many numerous models and makes as a most basic breakdown a private jet will cost you about four million dollars in annual costs like insurance maintenance upkeep and storage with an operating cost of about five hundred thousand dollars to 1 million dollars based on how much you fly of course these are just your annual you could splurge anything from 15 million to 600 million dollars on a private jet and then continue to upgrade it to your heart's content number 15 when is it actually time to buy a jet there are many mixed messages about when it makes financial sense to buy your own jet owning a private jet is far from the only way to fly private but it is the only way to know your flight is always waiting and ready for you to jet off those selling private jets will tell you if you're in the sky for around 200 hours a year it makes economic sense to own a jet but if you speak to aircraft brokers who offer fractional ownership basically think of a private jet timeshare then they will tell you that not until you average 500 hours in the air that it's worth buying outright however according to unbiased experts the sweetspot time is more around 240 hours spent airborne to make a private jet a reasonable investment and if these figures are starting to soar here's a bit of good news going bigger with a private jet isn't always better Robert Henry a private jet pilot explains in general smaller business jets can fly higher because they weigh less and have a better thrust to weight ratio the main benefits of flying higher include weather and turbulence avoidance and possibly more favorable winds so you can consider the most affordable private model the cirrus vision jet at 1.96 million and the sky's the limit from there now a Luxor's before we let you go were curious what would incentivize you to own a private jet we'd love to hear from you in the comments and of course for sticking with us until the end here's the bonus we owe you if you think you might be nearing the day you walk into a dealership and fly out with your own private jet it might interest you to know that you can work out the exact aircraft costs of owning any model on the market the internet is full of online aircraft cost calculators and that can even help you plan your trip budgets ahead of time and understand the costs associated with certain flight routes safe flying a Luxor's thank you for spending some time with us a Luxor's make sure to LIKE and subscribe so you never miss another video we also hand-picked these videos which we recommend you watch next you can talk to us on all social medias or ask the question on our website Alex calm thank you for being an a lexer and we'll see you back tomorrow

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Id: urW37bsDeZo

Length: 13min 1sec (781 seconds)

Published: Mon Mar 09 2020