Long term private jet lease
Long term private jet lease is a rental of certain private jet for the period starting from 3 months. Private jet lease makes possible to get all the benefits of own private jet, but you do not have to buy it and invest millions of dollars in it. Payment is calculated on the bases of minimum set of flight hours per month, that starts from 40 hours for a mid-size jet.
In what situation private jet lease is a smart solution?
1. You are flying private jets more than 40 hours per month
Starting from 40 hours per month private jet lease is more cost effective in comparison with single charter flights. Effect of scale starts to work from 40 hours per month.
2. Often you need to depart ASAP (2 – 3 hours from the moment of request)
Under long term private jet lease scheme, you are the only one using the private jet. Your business jet is waiting for you at a certain airport with crew ready to prepare for departure and perform a flight. In case of single private jet charter flight, it is possible that there is no private jet available at the airport you need. In this case ferry flight to airport of departure will be needed and this will take more time to position aircraft to the airport of departure and only then make all necessary preparations.
3. You often fly to destinations that are far from typical private jet home bases, with 3 - 5 overnights and such flight turn to be quite expensive due to positioning and re-positioning flights
In case you often perform a series of flights (charter programs) to cities that are away from private jet home bases and spend 3 – 5 days in each of them price of single private jet charter flight is quite high. There is logical explanation of price level in this situation. Commercial private jet to be profitable needs to fly certain amount of commercial flight hours per month. In case of long parking aircraft owners either need to invoice lost revenue for the days without flights or re-position aircraft for other commercial flights. In case of long term private jet lease agreement aircraft will be parking exactly where you need it and for the time you need.
Also, it is possible to decrease costs of private jet charter flights from cities where no private jets are based and for all your flights aircraft are ferrying from their home base, of course charging for these positioning flights. If 40 hours per month is too much for you, it is possible to coordinate with your friends or partners and take shared long term private jet lease and base private jet in the airport you need. All costs can be shared between you depending on utilization.
How is long term private jet lease price calculated?
Price consists of the monthly flight hours package and additional expenses for performance of flights. If the Client runs out of pre-paid flight hours it is possible to purchase additional flight hours for a set price.
Minimum flight hours package basing on private jet class:
Light-jet starting from 30 flight hours
Mid-size jet starting from 40 flight hours
Heavy jet starting from 50 flight hours
Ultra-long range starting from 60 flight hours
Additional expenses are costs of VIP terminals and VIP lounges, catering, alcohol, parking out of home base airport, de-icing costs in cases when needed.
How much does long term private jet lease cost?
It is most simple to explain long term private jet lease cost at a certain example. Let’s take Hawker 900XP that gained its popularity due to perfect combination of flight hour price and maximum flight range. Hawker private jets family has the largest world-wide “fleet” in operation – around 5% of the total number of private jets in operation now.
Hawker 900XP cabin is designed for 8 seats. Maximum flight range is 5,000 kilometers. There is fully functional galley on board with oven for hot catering service. Aircraft registration and operator are from the EU. Home base airport is Larnaca, Cyprus. Geography of flights is Europe, CIS and the Middle East.
 |
 |
Average market price of flight hour is 4,000 Euro, fixed monthly flight hour package is 40 hours. Total monthly flight hour package price is 160,000 Euro. This price includes long term lease of private jet, salary of crew members (2 pilots and 1 flight attendant), technical maintenance, insurance, dispatch services, fuel, airport charges and services*. A dedicated personal manager is available 24/7 for flight organization and coordination of all aspects of a flight.
With estimate 6 passengers on board, standard VIP catering and noted flights geography it is additional estimate of 10,000 Euro per month of variable expenses.
All in all, it is 170,000 Euro for 40 flight hours on Hawker 900XP. Let’s convert 40 hours to something more understandable. It is 5 flights from Larnaca to Central Europe and back. In case of single private jet charter flight price would be around 40,000 Euro for such flight, as no mid-size aircraft is based in Larnaca and repositioning flights will be needed. If you need to spend 3 - 5 days in Central Europe cities charter flight price increases even more, as commercial aircraft needs to fly and bring revenue or the Client has to compensate these losses while private jet is waiting on the ground. If we recalculate these 5 flights on single private jet charter bases, we have an amount that is around 280,000 Euro, that is much more expensive than long term private jet lease offer.
*Noted list of services included in flight hour is a basic one and is always a matter of discussion what should be included and what should be excluded from fixed flight hour rate. All conditions are note in a Long Term Private Jet Lease Agreement. At the end of a month full set of invoices from third parties is provided for services not included in flight hour.
Estimates on long term private jet lease for other types of business jets
Price is calculated for the fixed amount of flight hours per month.
7 seats, flight range 3,440 kilometers
40 hours, 128,000 Euro
9 seats, flight range 5,741 kilometers
50 hours, 250,000 Euro
13 seats, flight range 6,019 kilometers
60 hours, 310,000 Euro
14 seats, flight range 11,390 kilometers
60 hours, 500,000 Euro
What influences price of long term private jet lease?
First of all, it is the type of private jet that makes the main difference. A light jet is less expensive than a heavy jet. The situation here is fully the same as with single private jet charter flights.
In case of larger flight hour monthly package price of each flight hour decreases. The more flights performed, the less is price of each flight.
Expenses for parking of private jets differ from airport to airport. Parking prices in large airports in countries capitals are usually higher than those for parking in regional airports.
Benefits of long term private jet lease:
+ You choose the type of private jet that suits your best.
+ Certain aircraft is always available for your flights.
+ Departure in 2 – 3 hours from the moment of request.
+ Number of flights per month is not limited.
+ Flight geography with no limitations.
+ Technical maintenance is included in set flight hour price.
+ Charter flight expenses are always predictable.
+ In fact, you receive benefits of your own private jet, but with no need to spend millions of dollars for purchase.
Disadvantages:
- You always have to pay for the set minimum amount of flight hours.
- If you have not used the whole monthly package the unused hours burn.
Private jet rental and consulting:
Phone: +353 21 202 8492
E-mail: sales@skyrevery.com