How much income do you need to own a private jet?

In the USA, there is a bit of political theater going on as President Obama has repeatedly called people earning as little as $250,000 a year “jet owners.” However, does President Obama’s numbers really add up? In other words, could someone earning $250,000 a year really afford to own, operate or charter their own private jet?

The Wall Street Journal’s Robert Frank and Kelsey Hubbard recently sat down and gave a reality check about the level of income it really takes to become a true jetsetter.

Specifically, the pair noted that a good private jet will cost $5 million to purchase – unless you go for a scaled down version for a few hundred thousand dollars. However, they also noted that it will typically cost $500,000 to $1 million a year just to operate a private jet. This means that a private jet owner will probably need at least $10 million in income per year to afford to become a jet setting jet owner.

Moreover, it was noted that the cheapest rate to charter a private jet from New York to Florida was $3,000 an hour – starting from the moment you board. Hence, a round-trip flight from New York to Palm Beach Florida would probably cost at least $20,ooo or one-tenth of the income of someone earning only $250,000 a year.

In other words, owing and chartering a private jet is really just an option for a very small and elite group of wealthy individuals in our society – not those earning “merely” $250,000 a year. 

3 Responses to How much income do you need to own a private jet?

  1. Louis Graham July 2, 2011 at 04:23 #

    Not to mention the fact that Mr. Obama flies on one of the most expensive private jets in aviation! As a corporate pilot based in Chicago, I found it interesting that he would attack corporate aviation as he was an active user of charter companies before his election. It's a hard sell, but many of the deals that built our country were made in the back of some sexy business jet.

  2. Brian July 2, 2011 at 23:44 #

    John, actually that's not what he said. He never even implied that people making a "mere" $250,000/year could afford private jets. Its fine if you disagree with the POTIS's view on taxation, however if you write an article about it, please do it based on what he actually said, rather than what you think your readers will want to hear.

    Thanks.

  3. Larry January 27, 2012 at 03:51 #

    When did Obama ever once call people making $250k a year jet owners?

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