Private Jet 

Private Jet Costs

The private jet market is booming, thanks to more billionaires, bigger private jets, the hassles of flying commercial in the post 9/11 world, as well as more airports and longer runways. John Travolta even has a private runway that ends at his house (photo).

A private jet costs ~$3 million for a small Lear or Sabre that seats 4 people and can fly around 2,000 miles. A slightly larger private jet that can fly eight people around 3,000 miles costs $10-20 million. Larger Lear jets, small Gulfstreams, Falcons and Astra are in this category.

A mid-sized private jet that can fly up to 20 people around 6,000 miles costs $30-50 million. Larger Gulfstream jets, small Boeings, as well as Embraer and Bombardier, which owns Lear, are in this category.

Above that is where the costs get interesting. Built by Boeing and Airbus, a private jet in this category costs at least $50 million and is basically a full-sized commercial airplane whose interiors has been custom-designed as flying presidential hotel suites. Those already in the air costs upwards of $100 million, while one in production costs over $300 million.

So, should you buy a private jet or charter it?

That depends. If you fly more than 400 hours per year, you truly need that privacy and your time is that expensive, it may be worth the investment to buy, as well as the cost to operate (at least $100,000 a year). If you fly less than 400 hours per year, it's better to charter.