Third parties in this case include passengers, cargo and baggage. This provides cover against loss, damage or injury to third parties. In simple terms, there are two types of insurance that private jets must have. The hourly charter price is the aircraft’s hourly variable cost, along with factoring in fixed costs and broker fees. This is because, per hour, charter flights cost more. Of course, this hourly variable cost is different to that of the estimated hourly charter price. Therefore, the estimated hourly variable rate for operating the Gulfstream G650 is $4,131. This is how much extra the aircraft will cost you per flight hour. Therefore, the estimated variable cost for private jets is presented as an hourly figure. Therefore, flying 500 hours per year will result in variable costs 10 times greater than if you were to fly 50 hours per year. See this to learn about private jet fuel costs.Ĭlearly, the more you fly the aircraft, the more fuel it will use. One of the biggest costs when flying by private jet is fuel. The best example of a variable cost in this case is fuel use. Variable costs, on the other hand, are directly proportional to the number of hours the aircraft flies per year. The estimated annual fixed cost for operating the G650 is $773,810. So, therefore, whether you fly the aircraft 50 hours per year or 500 hours, the fixed costs will remain the same. These costs do not change in relation to the number of hours the aircraft flies. Whether the aircraft flies or not has no effect on fixed costs. When it comes to operating the Gulfstream G650, there are two expense categories to consider – fixed costs and variable costs.įixed costs are those that you pay no matter what.
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