Mr. Papariella's customers often look for used jets that are a few decades old and still perform well but cost less in advance. A 2002 Gulfstream G4 could cost $ 3 million – well over $ 60 million for the current G650. But the old Gulfstream still costs $ 1 million or more a year, he said.
"Even if you are very wealthy, a monthly bill could shock you," he said. “We want to involve the owner in how we make money. It is for people who are used to having information on hand. "
However, some buyers don't want to share.
A lawyer advising on jet purchases said the plane was just another asset for its billionaire customers. Many of them are happy that the plane is idle when they are not in use, even if a crew is available.
Management firms such as Executive Jet Management, part of Berkshire Hathaway's NetJets, and Solairus Aviation focus primarily on managing jets for owners, including negotiating fixed costs such as fuel and pilot training, but also compliance with flight and safety regulations ,
"First of all, owning an aircraft is a very technical experience," said Brian Hirsh, President of Executive Jet Management. "Unlike real estate, there are a number of regulatory compliance factors to consider, including: B. Pilot training, standards, certification and airworthiness of aircraft. The task of the management company is to make it stress-free. "
EJM is known to charge $ 5,000 to $ 20,000 a month for its administrative services. Additional costs such as fuel, pilots, and crew will be passed on to the owners, but at discounts that may be obtained by purchasing alongside NetJets.
"Together we have 766 aircraft, making us the fifth largest airline between United and Southwest," he said. "We take these discounts and pass them on to the owners."