Although private planes can cost millions of dollars, corporate executives and individuals who fly an average of 350 to 400 hours per year are finding that corporate jet ownership actually can save the company money. Before embarking on such a large purchase, it is important to understand all the pros and cons of owning an aircraft.
Choose the Correct Plane
Jets can range from small, light aircraft that can fly 5 to 8 people around 2000 miles to large, 12-passenger planes that can travel more than 4,000 miles. Prices can range from $3 million for a small plane to over $45 million for a large plane. The current economy has caused an influx of used jets on the market, but these are not always the most economical purchase. Federal Aviation Association (FAA) regulations require specific compliance at airports and bringing a used jet into compliance can be expensive. New jets often come with a tip-to-tail warranty and some offer special engine programs which charge a low hourly rate for mid-life inspections and overhauls on the engine that will be required later.
Just as the purchase price on a car is not the only cost factor to consider when buying, jets also have other costs that will be incurred long after the corporate aircraft is purchased. Insurance, fuel, catering, pilots and other expenses can be very expensive. There are management companies that will handle these expenses for you for a fee, usually between $100,000 and $200,000 per year. Repairs and maintenance can be unpredictable and some repairs can ground your plane indefinitely. Airplane parts are usually fairly expensive, as one part can cost as much as $50,000. Some engine repair facilities, such as Covington Aircraft can decrease that downtime with AOG Services and with expert aircraft engine knowledge. Loaner engines are also available to reduce your downtime during repairs.
Owning a corporate jet can actually save money in the reduction of time executives spend in airports, on commercial jets and in line at security checkpoints. Corporate jets have the ability to be customized to allow a better working environment and more comforts than commercial jets can provide. Covington Aircraft provides and overhauls the best engines in the world, including the PT6A aircraft engine.