A buyer with an $8 million budget plans to purchase two jets: a 20-seater for long routes like London-Dubai and an 8-seater for short European hops. Flying 200 hours yearly, he wants to rent them out to cover costs and generate income.
Can I have two planes? One for 20 and then one for 8.
So you want one airplane that goes from London to Dubai and one airplane that does basically Western Europe?
Yeah. My father owns the business. I'm glad that he let me do this deal.
How many hours do you think you're gonna fly a year? In a week, I'm traveling at least 2 times. 200 hours a year?
Yeah.
The fixed cost for that kind of an airplane is probably somewhere around $700,000, $800,000. And if you could rent it out 200 hours a year, $2,000 an hour, that's $400,000 a year you can make in profit. What are the jets I can get in this budget? So let's look at the possibilities. This is everything that can hold 8 people that's $8 million or less. Citation X, anywhere between $2.5 and $6 million. And then the Sovereign, they go from $9 million down to $5 million. You'll be able to buy a Challenger 604 for $6, $7 million. It's a much bigger airplane, but your operating costs will be higher. For example, the Sovereign will cost you about $4,400 an hour. Challenger 604, 50% more. If you're flying 200 hours a year and you're $4,500
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