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 about $3 million for a small Lear or Sabre that seats four people and can fly around 2,000 miles. Slightly larger jets 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.

Mid-sized jets that can fly up to 20 people around 6,000 miles cost $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 things get interesting. Built by Boeing and Airbus, jets in this category cost at least $50 million and are basically full-sized commercial airplanes whose interiors have been custom-designed as flying presidential hotel suites. Those already in the air cost upwards of $100 million, while one in production tops $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.