How to Purchase, Fly and Cash Flow a $2 to $3 Million Private Charter Jet

Justin Sullivan CEO of Ajax Jets delivers his company's unique value proposition to own and cash flow a classic charter jet. If you've been looking for a way to fly more and spend less, today is a great day!
#PrivateJet #PrivateJetCharter #PrivateJetLife

[@navajojohn9448]

Not unheard of charter companies padding the bills to owners and keeping rebates from vendors.

[@theMr.K]

This is gem bro. 💎 I've been looking for this kind of break down to plan for my jet for a while now. 🔥

[@LMays-cu2hp]

Thank you for sharing this part of the Aviation Industry.

[@QuentinBSmith]

I've been looking for this video my whole life! THANKS

[@YFWJ]

Thanks for subscribing Quentin!

[@kennethjohnson2967]

Not knowing anything about this , i had thought about something along these lines as a way to save money while owning a private jet ! Glad i watched this !

[@3mbracingautism]

OK, so this video was amazing. I’ve always wanted a private jet and to make money from having a private jet and me and my mother are actually looking for ways to start a business or something and I honestly feel like this would be an amazing thing to do. It’s a great way to make money, but also have a private jet.

[@jfit4161]

Love this!!! 😊

[@novascotianexplorer9154]

Thanks for the break down, really eye opening.

[@YFWJ]

Glad it was helpful!

[@navajojohn9448]

When you sell the plane you have recapture the depreciation as income if you sell the plane for more than the depreciated value.

[@YFWJ]

Truer words were never spoken

[@seriouslystewarts3537]

Great vid bro !!!

[@markoluwamomi2007]

Good job! Thank you!

[@YFWJ]

Thank you too!

[@mrMankx]

Maybe I can afford a screw or two....Still though, one can dream! Thanks mate!

[@oceanblue22]

Well done!

[@YFWJ]

Thank you!

[@willie714]

Excellent presentation Justin

[@YFWJ]

Thank you!

[@THELIFEOFPRICE]

Amazing video / breakdown. I have always wondered this. Been considering buying a hawker for a first jet to buy for my business use but would definitely want to keep it busy while im not using it just like you talked about. will definitely be shooting you an email for some further discussion =D

[@YFWJ]

Thank you !

[@Ricow5506]

Not many pilots aspire to fly a Hawker anymore.

[@THELIFEOFPRICE]

@@Ricow5506 why is that

[@Waynedeklerk]

Great video and thank you for making a video of it because l really want to know what is lees expensive jet you can buy for the first time

[@JR0Rider]

Had no idea the hourly operational cost was THIS high!! Wow!

[@777jones]

Now you see why it is only people with >$100m who ought to be doing this.

[@ihavemoremoneythanyou2814]

Thanks for all of your hard work editing and making content! Why don’t you go to the bank, get a loan, the business plan is there and get a few jets?

[@peterwakeman9930]

Lols

[@BrockInTheWorld]

Interest rates are high

[@dancetkamzimbinyirenda3419]

I need to own such jets worth ranges from $2 to 3 millions as explained in the video

[@Pilottoproperties]

Is there a market for phenom 300?

[@dancetkamzimbinyirenda3419]

Banks are favorite

[@QuentinBrendemuhl]

I just made a 20hr car drive and it sucked. So here I am, trying to make a business plan that involves me buying a jet.

[@panhandletrains]

Nicely done video. Looks like the numbers work - but what happens if the jet doesn’t get booked or chartered as anticipated…. Is the 75 hours of monthly chartering realistic…?

[@YFWJ]

Thank you for your very smart question! I do not encourage people to buy a jet strictly as an investment to make money. I encourage people who fly privately often, to consider buying a jet, because they can look at the savings versus charter or jet cards as part of the ROI on top of the cash flow and tax benefit. 75 hours of charter per month on a midsize or supermid jet is 1,000% realistic in this market.

[@theMr.K]

75/month is easy bro. Everyone's making millions nowadays in this online era. And nobody wants to spend hours on the commercial flights wasting their time.

[@lucianobottega377]

​@@YFWJHi, how much should I fly to consider buying a jet or continue chartering?

[@Sandrahans]

I will buy this

[@bizbuildershawaii1719]

So 75 hours of charter per month is a reasonable hard estimate to be able to generate revenue

[@justusmbuya5675]

Do you have services in African Cities like Nairobi

[@Maitamakabo]

Excellent presentation Justin, will this work for Challenger 604?

[@YFWJ]

A Challenger 604 might work but would not work as well as a Falcon

[@diceptia6444]

🤔 Think I might buy me one of these soon

[@YFWJ]

Let's do it! I have just the jet for you

[@3mbracingautism]

This video was definitely amazing. I’ve definitely always wanted a private jet and to be able to also make money from having a private jet from definitely going to look into this more because it would be amazing.

[@freddyn6668]

I want to get into this but want to make sure I have a better understanding of the profit first. Are you saying that if I buy a $3.5M charter jet and give you to operate, my EBITDA would be roughly $900k/annum? What about your cut, how much or what percentage will your cut be? And is 75 hrs/mo booking realistic/achievable? Thanks for your great content, I’ve watched almost all your videos and you have caught my interest.

[@YFWJ]

we take 15% off the top which is included in the EBITDA calculations.

[@navajojohn9448]

Wonder why so many charter companies don't own their planes if ownership is such a good deal.

[@coffeemocha]

No kidding. It's so simple, we all should do it. The fact is, all the asset risk is with the owner. The management company gets their fee no matter what happens.

[@Thetherian4859]

These numbers, even with some variations would seem to work for someone looking to make some passive income on an annual basis. Especially if they have some reserves on hand to cover times when revenue is not up to par. Seems just like buying a commercial property. What are your concerns about using this as a business opportunity??

[@YFWJ]

Private jets as an asset class have not historically made money. Commercial property as an asset class has historically made money. Real estate is much less expensive to maintain and has long term leases that are not as sensitive to market factors.

[@Neil-vn4hd]

Not many people are chartering the FA 50.

[@t123knight]

Does this model work if you live on the West Coast? Or does it only work if living near your service centers?

[@YFWJ]

Hey Trevor. We are in the west coast market and actively looking for owners who live there.

[@toddkuykendall6030]

@@YFWJ What about a customer in Tulsa KTUL ??

[@YFWJ]

@@toddkuykendall6030 absolutely

[@BrockInTheWorld]

I will buy a jet if I can pay cash but I hope I would be using it, not leasing it out! 😆

[@YFWJ]

Its a totally different calculus without charter revenue, but if you have the means, go for it !

[@BrockInTheWorld]

@@YFWJ No I couldn't do that haha

[@Neeeeeeeko]

Would love an update on this given current utilization. Doesn’t look anywhere near 80 hours a month.

[@YFWJ]

More like 50 - 60 in the current climate

[@willywonkabrl]

Thanks for the great video and explanation. Do you think the numbers are similar in other countries, like São Paulo/Brazil? It’s the largest city in latam and I’ve seen there is a lot of demand, but don’t know how far off from the US market it is.

[@YFWJ]

I honestly don't have a good perspective on the market outside of North America. No idea what the charter market looks like in Brazil. Sorry I wish I could be more helpful

[@YFWJ]

But just to be clear, I wouldn't be able to put a Brazilian-based jet, onto my US-based Part 135 air carrier certificate.

[@willywonkabrl]

Gotcha. Thank you for the reply!

[@BirdDog.]

Curious what you normally pay or charge for a 2c on a f50.. I know that’s loaded question with many variables.

[@YFWJ]

Depending on a lot of variables, $300k for the 2C, and $200k for the landing gear overhaul, remove and replace

[@BirdDog.]

@@YFWJ that’s about half off. These MROs are legalized larceny.

[@YFWJ]

@@BirdDog. Bring your plane to my shop www.PrivateJetMx.com we will take good care of you

[@TChalla007]

I've heard Grant Cardon and another KZbinr who both own planes say the same thing. Even said if they knew this earlier that would have bought the plane earlier.

[@YFWJ]

I don't think Grant charters his G-550 out but could be wrong. A G-V would have a far better return on equity than a G-550.

[@oldporkchops]

Would the "owner" own the jet free and clear? Or is it fractional ownership?

[@YFWJ]

owners own 100% of the jet in this program.

[@oldporkchops]

@@YFWJ Great. So since owners own 100% of the Falcon, they can then choose to earn some income by deciding to lease the jet for ad-hoc charters? Is this the basic way it would work? Is there an annual membership fee to cover ongoing maintenance and operating costs that are separate from the cost of the jet? The reason I'm confused is that I'm unsure if there's a difference between ownership and your Ajax Jets Axcess jet card membership.

[@YFWJ]

@@oldporkchops There is a monthly management fee, and charter commission. Airplane maintenance is a continuous program that is budgeted at $1,500 per flight hour, including engines. This is a self-liquidating model. Best to discuss as there are a lot of nuances. Send me an email I am very approachable [e-mail]

[@oldporkchops]

@@YFWJ Sure. Will contact you when I get a chance. And don't worry, I'm not doing this primarily for tax benefits :-)

[@dethray1000]

aviation has been doing lease backs forever

[@YFWJ]

yes

[@stevebond4916]

I am Maui based. How would this program work for a Hawaii based owner?

[@YFWJ]

Hi Steve. Yes we will happily support a Maui-based owner. There is a tremendous gap in charter services to/from Hawaii, and when the jet is not flying for you, it will print money in the domestic charter market.

[@landonbarretto4933]

@@YFWJ - how does one charter a jet to Maui?

[@YFWJ]

@@landonbarretto4933 www.AjaxJets.com please submit your quote request for your date(s) Thank you

[@robbyblanchard]

Are you still seeing these numbers this year?

[@YFWJ]

Not at all

[@peterwakeman9930]

Want a jet for a 20 hour flight

[@openscares7434]

How do I get in touch with u

[@JeffSekinger]

Chartering it 70 hours a month? Over 2 hours a day? Is that realistic for it to charter that much?

[@YFWJ]

Yes. That's about 11 cross country trips in a month. Totally doable.

[@GregoryFrancisDrive]

You Boston based?

[@YFWJ]

Our company is based in Boston and our jets fly all over the world. We support owners in all corners of the Americas.

[@Movetoonz]

So this is not a good investment to just make money from?

[@peterwakeman9930]

Like the 900 or 2000

[@peterwakeman9930]

They are Falcon Jets

[@YFWJ]

A Falcon 900B works perfectly for my model. Falcon 2000 is a great bird but there are some limitations. Also works well for a Gulfstream IV, G-V and Global Express

[@svoffcay9231]

Your operation costs are very low for aging Falcon 50. The engine and maintenance reserves are much higher than 1500. Not no reserves for refurbishment and modernization. Also no allocation for recapture on a depreciating asset.

[@YFWJ]

Thank you for your comment, but I beg to differ on every single point. I'm in the middle of (2) engine MPI, and (1) CZI, for $400k, (2100 TBO) which works out to $190 per hour (for all 3 engines). You may be thinking of MSP which I do not advocate for with my high-utilization charter model. Airframe maintenance of $1,000 per hour, from my experience, is a damn good number. Remember I have my own MRO facility.

[@svoffcay9231]

@@YFWJ What happens when Honeywell issues an AD? Your naked. It's increasingly getting harder to operate 731s without MSP. Parts and loaners. Honeywell 100% controls the price of parts. Without MSP you have no idea what costs will be tomorrow. It's only getting worse on aging airframes. Not to mention trying to sell a non programed airplane a few years down the road. You end up with no equity and no liquidity. Can't fly it and can't even find someone to part it out. I do agree the old F50 is great for the owner of an MRO just not for the guy paying the bills.

[@YFWJ]

@@svoffcay9231 Have you heard of Kalitta? ITI? If a Falcon 50 TFE731 motor blows beyond repair, you can get another from the boneyard off of a JetStar, Hawker 700A, Hawker 800, Hawker 800AA, Lear 31, Lear 35, Lear 36, Westwind, Astra, Citation VII - all made with TFE731's. For the same reason the components are findable and the engines are serviceable by companies that do it for way less than Honeywell MSP. They made 15,000 of these engines(!!) How much value are you protecting in a $2m jet from the 80's or early 90's? The previous 10 owners have already taken that depreciation hit. If you're talking about a $6m Falcon 50EX (with engines that are not TFE731), or a $9m Falcon 900B (again, more specialized engines), then you would not want to take a depreciation hit on flying without an engine plan. IMO it's a different calculus on a sub-$3m, supermid jet with 2100 TBO. Anyway, I'll scratch you off my list of people who I think should buy a Falcon 50 for charter and personal use. Peace out. Justin

[@davidr8309]

@@YFWJ2100 hours is the TBO of a piston engine. The TFE 731s on the F50 has a 2500 hour MPI (Mid Point Inspection) and a 5000 hour CZI (Core Zone Inspection)

[@YFWJ]

@@davidr8309 TFE 731 dash 3 are 1,400 hr MPI interval. TFE 731 - 3D are 2,100 hr MPI interval. TFE 731 - 40 are 2,500 hr MPI interval

[@jdm1152]

24 "by" 7, Ha.

[@YFWJ]

Thanks for your insightful comment.

[@jdm1152]

@@YFWJ Insightful, ha no. More like scotch and too much free time but thank you. Your presentation was good otherwise. Here's to flying PJ.

[@nitinmittal213]

Can someone invest in a $3M jet purely as an investment without using it themselves and make money in the current market?

[@YFWJ]

We don't work with cash flow investors. Our target market is HNWI who are looking to fly for less.

[@nitinmittal213]

@@YFWJ can people who don't have presence in US buy a jet through a corporation in US and get some credit?

[@Maurice181]

@@nitinmittal213 The corporation (not an individual) would receive the tax benefit, IF any benefit is allowable. For other tax questions you should consult a CPA.

[@electrolysisenhancer1858]

TLDR: Fly private for the cost of flying 1st class commercial, but with all the benefits of flying private.

[@Maurice181]

$7000/hour for jet charter...? That seems high for today's market. Try closer to $5000/hour.

[@Ricow5506]

You will never get $7000.00 per hour? 900 hours a year in charter? You are going to need more pilots to cover days off, sick time, vacation and training twice a year

[@YFWJ]

Interesting. Have you seen the Jet Card Comparison nationwide supermid rate of $12,500 per hour? Can I ask how you know how many pilots we employ per plane?

[@jamielancaster01]

WTF $15,000 a month for a captain🫨 Oh that must include the HAZARD PAY to fly that old ass Falcon 50!