How Private Jets Make Money

[@bobgoble2228]

Just curious, if a person home base in Tulsa OK, and you have the person jet somewhere else, how does he use it.

[@YFWJ]

Owners in our program generally fly 50 - 100 hours per year, or 5 - 10% of the total hours are owner usage versus charter. Owners schedule their flights on their plane just like a charter. If the owner wants to fly out of TUL, we would book charters to get close to TUL, and would sell it out of wherever that owner is going.

[@damianoteroreggiori6083]

Great interview. I wished they talked more about numbers. 1000 hours per year on a 3M jet, what’s the revenue? What’s the all in cost to operate? What’s profit and what is the share of revenue? Thank you.

[@YFWJ]

Hi Damian. kzbin.info/www/bejne/hnaniJmrorh0mpo. Please check out this video where I dig into the numbers pretty thoroughly. Happy to schedule a call email me [e-mail]

[@lbowsk]

Talk to some owners. A lot of these planes don't make that much money. The ownership costs are so exorbitant that they charter them to offset and minimize expenses. Take a close look at maintenance costs and depreciation after purchase. Astronomical numbers. SOMETIMES they do OK, but...... A used 2M Cessna Citation can EASILY have an annual maintenance bill of 75K or more.

[@YFWJ]

Thanks for your comment. Airframe maintenance budget on a Falcon 50 in our high utilization model is about $1m a year. The model is self liquidating, and completely different than a low-utilization Part 91 CJ owner. But yes, if someone is scared off by $75k a year in maintenance costs, this isn't for them.

[@billschober4011]

Always enjoy your interviews Justin. Looking forward to the day we can do business.

[@YFWJ]

Thanks Bill. God Bless

[@182plunky]

Could the falcon 50 make it from LA to Hawaii?

[@YFWJ]

Yes.

[@theultimatejetguide]

This was one of my favorite videos!

[@YFWJ]

Thanks Tom. Pretty amazing feedback on this episode in terms of inbound inquiries. I appreciate your platform. Thanks a million.

[@rockymartin4966]

Sir, You have great knowledge about this subject. It's going to sound funny. I have a transportation business with the Amish community.I am from India. It makes sense when you explained about O.M. Auto parts. And I could understand the logic. Behind the business model. Someday, with the help of God, (JESUS) I will own a private jet. I will keep you in mind. God bless, from Rocky Martin. Goshen Indiana.

[@wadesaxton6079]

They don’t make money. If they made money large management/charter companies would be buying them an putting them on charter. Wheels up, Vista, both are in financial problems because they bought the asset thinking they could buy, operate and profit. Old depreciated jets operating costs eat up any potential profit. In no way does a Falcon 50 compare to a Challenger 300/350. You’ll have to throw away the Falcon 50, old G200 etc at the first heavy MX event. First heavy check on the Falcon 50 will cost more than the plane is worth and all profit is gone.

[@YFWJ]

Thanks for your contribution, Wade. For the same $30m as a new Challenger 3500, one can buy 10-12 Falcon 50's. Similar category, similar capabilities but to your point, a CL350 is a nicer ride. You think that a 1C 'heavy check' is cost prohibitive for keeping this jet in the air? Last 1C I did (earlier this year) was $250k out the door for a new lease on life of a 40-year old jet. Being a late model Gulfstream captain, you probably know very little about these planes much less the maintenance cycles on them. To your point, I would not advocate for buying a fleet of brand new planes to make money. Thanks again for playing.

[@wadesaxton6079]

@@YFWJ I know plenty about the Falcon MX schedule and associated costs. Falcons are great aircraft but there are reasons you don’t see them in the Netjets or Flexjet fleets and the same reasons why the old ones are cheap. Thanks for playing

[@YFWJ]

@@wadesaxton6079if you think that a heavy check costs more than the plane is worth, you know very little which looks awful when paired with your bravado. Anyway, not sure what your point is but yeah NetJets and FlexJet do not operate classic airframe.