Bankers See Private-Jet ‘Party’ as Rich Clients Snap Up Planes
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Jim Carpenter
Line Up and Wait
"....first time owners......lots of cash...."
I'll bet there will be a glut of used jets in a year or so, once the 'extra' cash is gone and many get educated on just how much it really costs to own and operate.
I'll bet there will be a glut of used jets in a year or so, once the 'extra' cash is gone and many get educated on just how much it really costs to own and operate.
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Groundpounder
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Emerson Bigguns
They have been doing this for about a year now. Lots of people trying to beat the pre inflation rush.
Rushie
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Rushie
Yep. The purchase price of the plane is the least of the financial worries they cause me.
NordicDave
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Typical annual operating costs for a Citation 501SP for sale on BeechTalk:
Insurance - $9k
Hangar around Houston - $15k
Phase 1-4 (not due for 2 years) -$25k
150 GPH = $600/hr fuel. Less if you’re C.A.A. and plan trips better. $60k/year @100hrs.
Initial - $10k
Recurrent -$6k
Beyond my budget, but we’ll within many wallets.
Insurance - $9k
Hangar around Houston - $15k
Phase 1-4 (not due for 2 years) -$25k
150 GPH = $600/hr fuel. Less if you’re C.A.A. and plan trips better. $60k/year @100hrs.
Initial - $10k
Recurrent -$6k
Beyond my budget, but we’ll within many wallets.
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Vintage Snazzy (so my adult children say)
FOMPI instead of FOMO
Fear Of Missing Pre Inflation
Fear Of Missing Pre Inflation
Groundpounder
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Emerson Bigguns
Pretty big difference between running a clapped out 500 series citation with minimal maintenance and a large cabin bizjet. I also think he's a little optimistic about how cheap those airplanes are.
wsuffa
Touchdown! Greaser!
Not to worry. There are people in DC that want to fix the "problem". If they get their way it will be a buyers market soon enough.
Groundpounder
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Emerson Bigguns
Source?
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Drake the Outlaw
I imagine Netjets or the equivalent starts looking really inexpensive after a year of owning your own. Even better, you can walk away from Netjets pretty easily.
Groundpounder
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Emerson Bigguns
Most of the time no, and no.
Netjets is about simplicity and convenience. It’s one of the most expensive ways to fly.
I don't think the folks the article is talking about are in the owner-flown 501SP bracket.
Cervieres
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Antione
For this demographic, cost and convenience are all secondary to the ability to show off your personal jet. NetJets is for the poors.
NoHeat
Final Approach
Counterexample:
A photo of Warren Buffett aboard a NetJets plane, with his buddy Bill Gates:
https://www.forbes.com/sites/douggo...y-of-netjets-and-how-it-plans-to-stay-on-top/
Groundpounder
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Bill Gates has a G650, and Warren owns NetJets. For as great as NetJets can be, it does not compare to ownership.
NJP_MAN
Pattern Altitude
Those training cost are a bargain compared to modern aircraft.
wsuffa
Touchdown! Greaser!
Anyone who's serious about owning a jet is going to fly it more than 100 hours a year. I think those numbers are way low: if you've got assets to protect, some bare-bones insurance isn't going to cut it. And to enjoy the ride, you're going to want a pro pilot. And the cost of upgrades/repairs.
I know what the "corporate" flight operation cost per year 10 years ago for a G-IV and a Citation X. The cost of operation makes the initial capital cost look cheap.
No spin zone here any more - I was treading the line with what I did post.
Plano Pilot
Line Up and Wait
Insurance price is way low. We have 25M liability on our 560 and it alone is almost 9K, professionally flown. Phase 1-4 I would add 5-10K. You can probably find recurrent for a lower price
AA5Bman
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He who ironically no longer flies an AA5B
Previous poster best me to it, but you can insure a citation for $9k a year? For all the bellyaching about insurance, that doesn’t seem like that much given the performance.
Low hull value, and I’m assuming low liability limits too.
NordicDave
En-Route
Here’s the ad text on BeechTalk:
Flawless Paint and Interior
1700 remaining, on condition blade motors, hot sections done
Gamin Jet Tech Panel
5900hrs TT
Phase 5 just completed
$575K Firm
The plane is beautiful inside/out and new panel from the pics in the ad. This SP is far from clapped out old jet.
35 AoA
Pattern Altitude
I got insured for the spruce goose for only $100/mo in gift cards to a friendly lady that contacted me on the phone. Still waiting for my first flight? She was also kind enough to help me out with the extended warranty on my 31 year old BMW.
Bill Gates owns four private jets as well as a Cessna 208 Seaplane and a Eurocopter EC 135 helicopter. His private jet collection is made up of two Gulfstream G650ER's and two Bombardier Challenger 350s.
James_Dean
Pattern Altitude
I pay $16k/yr for $5mm smooth with $1mm hull value on my Conquest. I’m 1700 hours with 600 turbine and 1100 twin.
wsuffa
Touchdown! Greaser!
Good deal. I got an email from a barrister in Nigeria that offered to insure me for free if I would accept my inheritance.