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31 July 2009

How to Buy a Private Jet How to Buy a Private Jet

Buying a private jet is a complex, not to mention costly, process and one you want to get right considering the level of investment involved. Before you start the search for your own set of wings, check out Inbound Asia’s list of insider tips to make sure you’re flight ready.

Do a cost-benefit analysis before you even start to look. ASA Group aviation expert Scott Stammers suggests that around 400 hours of flight time a year should justify full private jet ownership. Secondhand aircraft will of course be cheaper.

Size and flying range should be your key consideration. Light jets (US$3-8 million) can take 5 to 8 passengers roughly 2,000 miles (3,219 km); midsize executive jets (US$9-16 million) can take up to 9 passengers from 2,000 to 3,000 miles (3,219 to 4,828 km); and large executive jets (US$17-45 million) can carry 12 passengers more than 4,000 miles (6,437 km). Very light jets (4-6 passengers), affectionately dubbed ‘SUVs with wings’, are a cheaper newcomer at just US$1.5-3 million.

Hidden costs mount up very quickly. Make sure you factor the following into your purchase and budget: insurance, catering, pilots, ground handling, storage, fuel and charter revenue agent fees

Share the cost by considering fractional ownership. Jet sharing schemes and syndicates are a great way of enjoying the flexibility and convenience of chartering, without quite such a hefty price tag. Make sure you’re fully up to speed and covered on the legal side of things though, and consult a specialist aviation lawyer. www.fractionaljetownership.com

Get expert advice on your purchase, especially if you’re not an aviation buff. Contact private jet manufacturers and ask for aircraft specifications and pricing, and then speak with jet dealers, many of whom can be found online. If you’re not sure what to look for on the technical side of things, employ someone who can advise you on this independently and ensure you know the right questions to ask.