US EditionPublished • loading... • Updated
The economics of private aviation: When it makes sense to lease and when it makes sense to own
Ownership becomes financially efficient above 400 annual flight hours as fixed costs and depreciation heavily impact costs for lower-use private jet owners.
- Industry data show ownership becomes cost-effective only above the utilization threshold, with Fractional Jet Ownership's analysis finding financial sense only after 300–400 flight hours annually.
- Fixed annual costs like hangarage, insurance, crew salaries, and pilot training accrue regardless of flying hours, while PwC notes depreciation causes a $20 million midsize jet to lose $1 million annually.
- Fleet utilization comparisons reveal why fractional models scale costs more effectively as fractional fleets average about 1,200 hours annually versus fewer than 400 for wholly owned jets, while leasing helped the large business jet segment capture 48.1% of global revenue in 2024.
- Leasing and fractional models remove the massive upfront capital requirement, enabling businesses to treat travel as an operating expense while providers absorb maintenance and downtime risks.
- The trend is broadening who uses business aviation as shared fleets fly more hours daily, supporting sustainability and expanding access beyond high-net-worth individuals in the access economy.
Insights by Ground AI
22 Articles
22 Articles
Helena Independent Record+21 Reposted by 21 other sources
The economics of private aviation: When it makes sense to lease and when it makes sense to own
Fractional Jet Ownership reports that for private jet usage under 400 hours annually, leasing is often more cost-effective than ownership, highlighting a trend toward flexibility in aviation.
·Helena, United States
Read Full ArticleCoverage Details
Total News Sources22
Leaning Left1Leaning Right0Center18Last UpdatedBias Distribution95% Center
Bias Distribution
- 95% of the sources are Center
95% Center
C 95%
Factuality
To view factuality data please Upgrade to Premium
