Although owning a private jet is widely seen as a symbol of success, the costs go well beyond the initial multimillion-dollar purchase. Some aircraft in the Australian market are available for as little as $3 million, while top-tier models can exceed $120 million. However, that is only the beginning, as annual operating costs typically range from 8% to 10% of the aircraft’s value. This creates substantial ongoing expenses even for wealthy owners.
Australia now has around 200 privately owned jets. Increasingly, entrepreneurs are entering a space once dominated by billionaires and charter companies. More people now view jets as business tools rather than purely indulgent assets, driven by the desire to save time and avoid the limitations of commercial air travel. This trend has accelerated since the beginning of the pandemic. The secondary market is expanding as well. More than 14,000 aircraft are currently for sale worldwide, offering options from small Cessnas to converted commercial planes.
The costs do not stop with the purchase. In major cities such as Sydney, monthly hangarage fees for large jets can exceed $20,000. Refuelling may cost around $4,500 at a time. Landing and parking fees are also high. Sydney Airport charges close to $360 per landing, with daily parking fees reaching up to $500. On top of this, owners must cover pilot and crew salaries, overnight accommodation, insurance starting at around $45,000 per year and regular maintenance. Overall, owners need to set aside hundreds of thousands each year just to keep the jet operational.
Looking ahead, demand for private aviation is expected to grow, especially among regional entrepreneurs and high-net-worth individuals managing large businesses. Models like the $US13 million PC-24 are gaining popularity due to their ability to land on remote or unpaved airstrips. This offers owners greater flexibility and helps them regain lost time. Business jet deliveries in the Asia-Pacific region are expected to increase from 33 this year to more than 50 by 2034.
Some prospective owners are choosing to charter private jets instead of buying. Others are opting to charter out their aircraft to reduce costs. Jet charter providers say that group bookings can bring prices close to business class fares, particularly when considering the time saved and the benefits of personalised travel itineraries. Some companies help jet owners lease their aircraft for up to 200 extra flight hours per year to offset running costs.
In the end, while private jets deliver exceptional speed and convenience, the financial commitment is often underestimated. There is a strong case for jet ownership in business, but only for those with the means to handle the long list of ongoing costs.
