Can you afford a private jet? Beyond the purchase price, it’s crucial to evaluate the full scope of ownership costs. From hourly Direct Operating Costs (DOCs) to maintenance, fuel, and crew expenses, understanding these variables will determine your actual budget. Analyzing these factors in relation to your planned usage will help you gauge the true cost of ownership. Additionally, considering unexpected costs and fluctuations in expenses will give you a more accurate financial picture. Continue reading to learn more about what it truly means to afford a private jet, including how to assess the comprehensive costs beyond just the purchase price.
Let’s assume you’ve found what looks like the ideal aircraft to buy for your mission requirement. The purchase price falls within range, but does that necessarily mean you can afford it?
Analyzing the hourly Direct Operating Costs (DOCs) of the aircraft is vital. It is particularly important to look at the DOC from the perspective of the average stage length you anticipate flying, as well as how these might change on shorter or longer flights.
The DOC (which we’ll refer to as the Variable Costs) should include fuel, maintenance, landing, parking and ground handling fees, spare parts, crew expenses (including layovers), and catering costs, among others.
You’ll need to establish several assumptions when preparing a variable cost analysis which will form the baseline of your assessment.
This article was originally published by NAFA member CFS Jets on August 14, 2024.
