“Our family has been using fractional jet ownership for years, but now we’re thinking about buying a light jet outright. With tax deductions, depreciation rules, and rising costs, how do we figure out if owning a plane actually makes financial sense?”
This is a great question. Moving from fractional jet ownership to full ownership is a big leap, and there are many factors to weigh before you decide.
The Upfront Cost
Purchasing a light jet is a significant financial commitment. Depending on the model, you’re typically looking at $3 million to $10 million upfront. Citation jets often land on the lower end of that range, while newer options like HondaJets or Embraers can be closer to $10 million.
Ongoing Costs
After the purchase, expect annual operating costs in the range of $500,000 to $1 million. These include:
- Fuel (the biggest variable expense)
- Maintenance and engine overhauls
- Hangar fees
- Insurance
- Pilot and crew costs
It’s important to note that owning your own plane doesn’t eliminate scheduling challenges. Unless you employ full-time pilots and crew, you’ll still be coordinating flights and logistics through a third-party service.
Tax Benefits
If the jet will be used primarily for business purposes, you may be able to take advantage of bonus depreciation and other tax deductions. These benefits can help offset the cost of ownership, but they aren’t available for personal-use-only aircraft.
When Does Ownership Make Sense?
Fractional ownership typically costs $5,000–$7,000 per flight hour for a light jet. To justify full ownership financially, you’d generally want to be flying at least 200+ hours per year. At that level of usage, your total costs per hour may be lower when you own the plane outright, especially if you spread fixed costs across more flight time.
How to Decide
The best way to evaluate the numbers is to:
- Get accurate quotes for all ongoing costs (maintenance, hangar, insurance, etc.)
- Estimate your annual flight hours
- Compare your projected ownership cost per flight hour to what you’re currently paying for fractional ownership
The difference will help you decide whether full ownership is worth the added complexity and responsibility.
Final Thoughts
Owning a jet brings more flexibility and can be a valuable asset, but it’s not a guaranteed upgrade over fractional ownership. The decision ultimately comes down to your flight hours, your willingness to handle (or outsource) the logistics, and whether you can take advantage of business-use tax benefits.
For a deeper dive, listen to the full podcast episode here.