Cost of Private Jet Membership versus owning
The cost to buy a private jet can range from $2 million to more than $100 million, depending on the size and features of your aircraft. Some memberships come with fees with less of a sticker shock, and some do not have any upfront fees at all.
When it comes to the private jet cost per flight, membership is relatively stable and paid for upfront, allowing you to set reasonable expectations of how much your trip will cost. Because of the higher initial and fixed costs of ownership of the plane, the more you fly the cheaper your cost per flight will get, allowing frequent flyers to realize significant savings.
The number of passengers you plan to fly with can factor into the decision as well. If you are frequently flying business partners and clients around the world, owning a larger jet may help you lower the cost per trip. That said, larger jets have higher upfront costs.
A jet membership club generally allows you to choose the size of aircraft you take, meaning you can pick the jet that is best for that trip, rather than needing to buy one that can accommodate your largest traveling parties.
While cost is likely the biggest thing to consider when weighing private jet ownership or private jet membership, your personal preferences and your business needs should be factored in as well.
If you want to be able to roll onto the tarmac and be greeted by a familiar flight crew as you board a familiar jet at just a moment’s notice, then ownership is likely for you. If that kind of consistency is not as important as making your budget, a membership club may be a better option.
The needs of your business are important as well. If most of your flights are a handful of people, but a few times a year you bring along a larger team, then the flexibility to pick which size aircraft you use can be an important benefit. If you are frequently flying larger groups from place to place, ownership could be relatively cost-effective.
Depending on your private jet usage, there may also be tax implications for both options. If traveling for business, the costs of ownership or membership could be deducted, potentially adding significant savings to your tax bill. That said if the jet is generally for business, but used for personal travel, the IRS can opt to consider it a fringe benefit and tax it as income.
Biggest factor: How much you fly
Whether you opt to own your private jet or go with a jet membership program, the amount of time you spend in the ski is the biggest factor to consider.
The more you fly the more economical owning a jet becomes, as the fixed costs like purchase price, maintenance, insurance and staffing pilots can be spread out over many different trips. While you are susceptible to shifts in fuel prices, owning a jet gives you the freedom to fly without scheduling restrictions
If you consider yourself a frequent flier, but your time in the air doesn’t exceed 200 hours a year, then a jet membership program is likely a better option. While you may need to plan more in advance and can be subject to fees like a fuel surcharge, it is probably more economical in the long run to avoid the high fixed costs that come with owning a jet.
If you want to talk more about the benefits of owning a jet versus a membership program, reach out to us at Jet Agency. Our talented team loves finding ways to make sure you are getting the best bang for your buck.