Perform a cost-benefit analysis prior to buying a business jet. Determine how many hours of flight time are your executives flying each year and what the total cost of public flying has cost your company. If you consider the cost of business class tickets over ownership of a private executive jet that can leave at any time, you may want to consider going private.
Consider fractional ownership. Fractional ownership is when you divide ownership between other companies and split the cost of keeping the crew and maintaining the jet. The one drawback is that you may not have access to the plane when you need it.
Consider other potential hidden costs. A new jet is going to be priced about $10 million to $50 new. But along with the initial capital needed to purchase the jet, you need to factor in the cost of a crew, fuel, insurance, food and maintenance.
Hire an aircraft management company to manage the small details of your executive jet if you don't want to be bogged down in everyday aircraft issues. These companies will charge about $200,000 a year. You can find most aircraft management companies at your local F.B.O or fixed base operator.
Determine what size plane you will need. How far will you be flying and how many executives will be on each trip. A smaller jet that hold 5 to 8 passengers comfortably will cost about $6 million. These light jets will travel on one tank about 2,000 miles.
Purchase a mid-size jet if you need to have up to 10 passengers travel each trip. A mid-size jet will cost about $15 million new and will travel up to 3,000 miles.
Purchase a large executive jets if you need up to 15 executives to travel comfortably. These will cost about $30 million and will travel more than 4,000 miles.
Contact a private jet broker when you have determined your needs. You can shop on line to find private dealers who will have both new and used inventory.
