Weighing the options and crunching the numbers.Full ownership, fractional fractional size expressed as a relative part of a unit. fractional catabolic rate the percentage of an available pool of body component, e.g. protein, iron, which is replaced, transferred or lost per unit of time. , block charter or traditional charter. So what's right for you? Each is discussed throughout the various articles of this special section--and there are many variables indeed. Among them, of course, is the bottom line. How much does each actually cost per hour? The data below (using a mid-size Learjet Learjet is a manufacturer of business jets for civilian and military use. It was founded in the late 1950s by William Powell Lear Jr. as Swiss American Aviation Corporation. Learjet is now a subsidiary of Bombardier and marketed as the "Bombardier Learjet Family". 60 as an example), provided by Spirit Aviation, will hopefully help you with your decision.
Mid-Size jet (Learjet 60) 150 Hours Annually
Full Fractional
Ownership Ownership
Cash Up Front $1,300,000 $244,687
Fixed Costs
Operating $356,000 $237,600
Variable Costs $145,000 $274,200 *
Capital Costs
Principal $880,685 $5,389,354
Interest $678,043 $121,540
Total Annual Cash Out: $2,059,728 $1,022,694
Charter Revenue $462,500 $0
Total Annual Cash In $462,500 $0
Net Expenditures $1,597,228 $1,022,694
Flight Costs per Hr. $10,648 $6,818
Potential Tax Savings $962,236 $179,055
Flight Costs per Hr.
(After Tax Savings) $4,233 $55,624
Learjet 60
One-Way n/a 100%
Hours $300 200
Interest Yrs $10 005
Full Fractional
Ownership Ownership
Capital Outlay $1,300,000 $326,250
Fixed Costs
Operating $356,000 $316,800
Variable Costs $75,000 $182,800
Capital Costs
Principal $880,685 $519,138
Interest $678,043 $162,053
Total Annual
Costs: $1,989,728 $1,180,791
Actual Per Hr $6,632.43 $5,903.96
Block Charter Traditional
(Sentient) Charter
Cash Up Front $675,000 $0
Fixed Costs
Operating $0 $0
Variable Costs Travel Card $855,000
Paid Up Front
Capital Costs
Principal $0 $0
Interest $0 $0
Total Annual Cash Out: $675,000 $855,000
Charter Revenue $0 $0
Total Annual Cash In $0 $0
Net Expenditures $675,000 $855,000
Flight Costs per Hr. $4,500 $5,700
Potential Tax Savings $0 $0
Flight Costs per Hr.
(After Tax Savings) $4,500 $5,700
Learjet 60
One-Way 100% 0%
Hours 200 15
Interest Yrs 5 0
Block Charter Traditional
(Sentient) Charter
Capital Outlay $337,500 $0
Fixed Costs
Operating $0 $0
Variable Costs * Travel Card $85,500
Paid Up Front
Capital Costs
Principal $0 $0
Interest $0 $0
Total Annual
Costs: $337,500 $85,500
Actual Per Hr $4,500.00 $5,700.00
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