Gulfstream: The True Cost of Aircraft Ownership
Sep 29, 2021
The start of your private jet ownership journey should begin with a heavy focus on costs, both initial and ongoing. This article breaks down the costs associated with owning a Gulfstream. Much of this information is applicable to other types of jets, but the specific calculations were made with Gulfstream owners in mind.
What is the Gulfstream?
Gulfstream Aerospace is an American air-framer that is known for being an early pioneer in private jet manufacturing. Today it still leads as an innovator in the private jet manufacture space.
Gulfstream, named for the sea current, began in the 1950s with the development of a turboprop business aircraft. In present times, you’ll find that Gulfstream has cleverly expanded its family of private jets to suit nearly every need.
Cost breakdown of the Gulfstream
Purchase Cost – $25 million to $75 million
The purchase cost of a Gulfstream aircraft will depend on the model you select and on whether you buy a new aircraft or a pre-owned one. The numbers below reflect the average cost of a new Gulfstream at the time of writing.
- Gulfstream G800 – $71.5 million
- Gulfstream G700 – $75 million
- Gulfstream G650 – $65 million
- Gulfstream G650ER – $66.5 million
- Gulfstream G600 – $57.9 million
- Gulfstream G500 – $45 million
- Gulfstream G400 – $34.5 million
- Gulfstream G280 – $25 million
If you decide you don’t need a brand new aircraft, you can save quite a bit of money on the purchase cost. The price for a pre-owned Gulfstream will vary depending on the model, number of hours flown, and other factors relating to its overall condition.
If you finance your aircraft instead of buying it outright, you’ll need to factor in the monthly loan payments over a series of years. This will add to the monthly and yearly expense of owning and operating a Gulfstream. You should also consider the expenses from incurred interest and how that affects the overall cost when making a purchasing decision.
Buying the aircraft will be the most expensive upfront cost to aircraft ownership.
Fuel Cost – $2,290 per hour on average
Fuel costs average at about $5 per gallon but this fluctuates throughout the year. You can always find up-to-date national averages at Airnav or see current fuel prices broken down by region on GlobalAir.
You’ll notice that fuel prices can spike as high as $8 to $13 per gallon. Consider your budget: If the prices spike, can you reasonably afford to fly?
To calculate how much you will spend for hours flown, consider:
(GPH of your aircraft x Cost per gallon) x hours flown
Crew – $200,000 per year
A crew for your private jet is a must. Without one, you won’t get very far. The size of crew needed to operate your jet will depend on the size of the aircraft you purchase.
Other variables should also be taken into account when determining the annual cost of maintaining a crew for your aircraft. These variables include the region where you’ll be operating out of and the aircraft type itself. Additionally, Your crew may not be limited to pilots. You may also consider hiring a flight attendant for your private jet.
In addition to crew salary, be sure to calculate crew training costs. These costs usually sit at about $30,000 per year, however, this cost will go up with larger crew sizes.
Overall, the cost to pay for a train crew will come in at roughly $200,000 annually.
Insurance – $10,000 to $500,000
Insurance costs are going to vary because the final cost is heavily dependant on a number of factors unique to your situation. Price differences in insurance policies can be due to everything from how your aircraft is stored to the age of the aircraft you own. It’s important you pay close attention to the details of the policy you’re offered to ensure it includes the amount and type of coverage you need.
Factors that can affect aviation insurance cost:
- Flight hours
- Aircraft storage
- Aircraft parking method
- Aircraft age
- Aircraft type
- Coverage necessary
It’s important that aircraft owners shop around to find the plan that best matches their needs at a price that they deem reasonable. Due to the varying factors involved in determining insurance costs, you’ll see wild fluctuations from one policy to the next. Working with a company like Avion Insurance allows you to get the best policy for your needs thanks to our representation of every A-rated aviation insurance underwriter in the industry.
Landing and Handling Fees – $15 to $30 per flight
You should also consider landing and handling fees that will accompany each flight you take. This cost covers being able to land at an airport, park, and have ground services completed. This cost is heavily dependent on the location you’re flying into and the size of your aircraft.
Hangar (Storage Cost) – $300 per month
The cost of storage for a Gulfstream will depend on the type of storage your choose and the location where your aircraft will be stored. Rural airports will be much cheaper than busy airports in major hubs.
This cost will average out at roughly $300 each month.
Maintenance – $200,000 per 200 hour/year
Your aircraft will need an oil change for every 50 hours of use. This comes out to about every four months. Additionally, your aircraft will also be required to undergo annual inspections. This cost can range from $600 to $1,200. Repairs will be needed as well throughout the years, spanning from tiny updates to major overhauls. With both standard maintenance and out-of-the-blue repair work, you should budget for $200,000 per 200 hours each year.
Aircraft Cleaning – $200 to $600 each cleaning (optional)
Aircraft cleaning is an optional cost as this is technically a task you could carry out yourself. This cost will depend on the type of cleaning your request and the size of the aircraft you own. You can expect costs between $200 and $600 with add-on services bumping the cost up over $1,000 in some cases.
Aircraft Management Fee – $5,000 to $15,000 per month (optional)
Aircraft owners have the option to pay a management company to take care of administrative headaches that come along with owning a private jet. Management companies take care of scheduling, coordinating maintenance, and other aircraft management concerns. While it is not required, an aircraft management company is a service to consider as a busy business jet owner.
Full Cost Breakdown At a Glance
You can rely on a cost breakdown to be identical to your personal real-life situation. We encourage you to consider all the unique factors of your situation, location, and differences that could cause a change in the budget. Beyond this, you should also stress test your budget to make sure you’re ready to tackle a worst-case scenario.
The cost breakdown below assumes you purchase the Gulfstream G600 which sits in the average price range for the Gulfstream family of jets.
The following breakdown assumes 200 hours per year of use.
|Expense||Cost Per Year|
|Landing and Handling Fees||$1,000|
|Hangar (Storage Cost)||$3,600|
|Aircraft Cleaning||$4,800 (optional)|
|Aircraft Management Fee||$120,000 (optional)|
|Total Yearly Expenses||$1,037,400|
If you’re taking a look at annual costs in relation to flight hours then you’ll find massive differences in cost between 150 operation hours and 500 operational hours. This brings into question whether your situation truly requires ownership of a private jet or if you can get by using charters.
For more information on determining if purchasing a jet is right for you, check out the details in our article on the right time to buy a jet to make your decision.
Get Your Gulfstream Insured
In the market for a new private business jet? The Gulfstream may be the right investment for you. You’ll want to make sure your asset is kept safe and secure. We offer a range of comprehensive aviation insurance policies at great rates. Make sure your new aircraft is never underinsured or uninsured. Contact us to get started with your personalized quote.
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