Private Jet Ownership Reconsidered

Owning a private jet may be too expensive for anyone.

Private jet travel has taken a hit lately.  This could be deservedly so, as a private executive jet can run between $5-40 million dollars, then the fun starts.  Keeping salaried pilots, maintenance, taxes, surcharges, fuel, and hangars amke private jet ownership expensive.  In a publicly run company one can make a case for private jet travel, but private jet ownership is another matter.

Often I state that a privately held company wouldn't dream of owning private aircraft.  The owners know that such luxury is merely taking unecessary dollars out of their pocket.  It is the public companies where executive employees consider such an expense an employment perk.  After all the bottom line has to be split a million ways, and the true value of many stocks is not the return or dividend, but the sale value of the stock being held.

Of course, there are options.  A cost saving private jet trick is to buy a set number of hours to fly on a third party's fleet (fractional airplane), if a company will be flying frequently via private jet.  If private jet travel will be infrequent, then single private charter air may be in order.