In this recorded consultation, Steve Varsano guides Iman Ghadzi through the process of selecting a private jet within a $30 million budget. They discuss seating capacity (minimum eight seats), interior aesthetics (color schemes, window size, perception of space), financing constraints (loan term plus aircraft age must not exceed 20 years), and required range for routes such as Dubai‑London and London‑Cape Town. Varsano explains how wind affects range, the importance of baggage capacity (approximately 18 large suitcases), and provides operating cost estimates (~$3.6 million per year or $10 k per flight hour at 350 hours annually). Regional cost differences are highlighted, noting higher expenses in Europe versus cheaper fuel in the Middle East and the steep landing/handling fees in Russia. Cabin layout options are described, including three‑section configurations, galley placement, bedroom and bathroom arrangements, and the impact of cabin size on passenger comfort. Finally, Varsano advises that owning a jet only makes financial sense above ~150 flight hours per year; below that, fractional ownership is recommended, emphasizing the flexibility and cost‑effectiveness of fractional arrangements for lower utilization.
Chapters
Honestly, what would be the maximum, maximum budget that you would want to spend?
$30 million.
Out of 148 models, there's been 27 of them that are priced over $30 million, so we just got rid of those. So we're going to start filtering out those airplanes that don't meet your need. Normally, there's 4 or 5 or 6 people in a section. So the question is, is do you want to have a sleeping area plus 2 other sections? Do you want to be able to just have a 4-seater, 8-seater, 12-seater?
It needs to be 8 minimum.
8 minimum.
Even like, for example, whenever we fly, even if it's just 3 of us. I'll still take an 8-seater. I think 6-seater is a little too cramped. Like, you know when you're in a jet, it just feels like wafty? Like, it just feels like— and sometimes you get in a jet and it's wafty. Like, sometimes—
what is wafty?
You know when something just feels airy inside?
Yeah, no, listen, there's no question about it. The biggest difference is the interior colors. If there's any kind of pattern, like a stripe or a plaid or something like that, makes the airplane much smaller. And the size of the windows. Funny as it sounds, some of the airplanes have much bigger windows than the other ones, and And so if you're sitting in the seat, you know, you have to sort of lean over, look down or something like, it's not like right where it's supposed to be. And some of them have the big windows where you're sitting down, it looks like you're looking out of a living room size window. As you're flying, it brings in more light. It makes the airplane look bigger, even though it's perception, it's an optical illusion, but it does make you feel like you're in a smaller plane. And the longer you sit on an airplane, the smaller it gets. Do you think you're gonna get bank financing?
Correct, yeah.
Okay, so that's a key question because a bank, if they're gonna loan money to you, usually what they say is the term of the loan plus the age of the airplane should not exceed 20 years. So meaning at the end of your loan, the airplane shouldn't be more than 20 years old. Let's keep 15 years in here. So if you got a 5-year loan and 15 years old, so now we're down to 58. The next one is the maximum range. So the longest trip from A to B, where do you think that would be? 5 or 6 times a year.
I'd say farthest realistically, I don't know, maybe Dubai to London.
So from Dubai, this is the range that you can go nonstop. Okay, so anywhere in Europe, you can make it to South Africa and you can, make it to Singapore. However, this is with no wind. So now, this was the winds last week at 35,000 feet. We're going to put a 50-knot wind. Normally, you could see that the winds around the world generally go from west to east. So even though they're not a straight line, you have high pressure, low pressures, and things like that. Generally, you can see how the winds are always going this way, which just means is that you're going to be able to fly faster when you're going east, and you're not going to be able to go as far on range, or it's going to take you longer when you're going west. Because the wind is pushing against you.
I do plan on returning back to London in the next few years. I'm also just buying another house in Cape Town at the moment. So I'd like to see from London to Cape Town.
Okay, so from London, you won't make Cape Town. I'll tell you, if you wanted to make Cape Town, you can do it for $30 million, but you're going to have to get the larger cabin airplane. What happens is you need more fuel to get that far, and the fuel is carried in the wing. So the bigger the wing, the more fuel you can carry. When you get a bigger wing, they put a bigger fuselage on it. So it's sort of a domino effect. One of the things people don't ever ask, which they absolutely should ask, is how much baggage can I put in my airplane? And I can tell you, this is a nightmare question. Every time somebody has an airplane, they never ask this question, and this is the most important thing of every flight.
I guess just to understand, what does this equate to in terms of, let's say, suitcases?
This amount is about 18 suitcases, large suitcases. So it's one per person, but how many of your friends, I won't say you know, male or female, but how many of your friends travel with one case? Okay. I was just on a plane, a Global, the newest, the longest one. There was 12 passengers and 48 suitcases. So the last section of the airplane was just a luggage compartment. It was just piled up inside that plane. And usually what we look at saying, if you want to buy, let's say this airplane, you're going to fly it, I don't know, 350 hours a year and you're going to pay $4.50 a gallon. Okay. That airplane's going to cost about $3.6 million a year to run it, which is about $10,000 an hour.
There's a surplus for Europe.
Yeah, because what usually happens is everything is more expensive in Europe than it is in America. Everything. Everything except jet fuel. So everybody normally thinks because they drive cars, the car fuel is so crazy pricier, it's double, triple than it is in America. But jet fuel is actually cheaper in Europe than it is in America. So we put a 25% fudge on it because just the currency, euro control and all the currency fluctuations and all that kind of stuff. We add 25% to an airplane that solely works out of Europe. But if you're in the Middle East, it's actually much less because fuel is so much cheaper. And in America, it's so much cheaper. Europe itself is expensive, and Asia also. Before, we used to go to Russia. Landing in Moscow, they fuck you for everything. It was so expensive just to land.
Is that because of the demand or just because they can?
Because they can. You had no choice. You had one airport to go to. They take out the trash from that plane, just literally take it out of your plane and put it in the truck to go throw away. They charge you $1,000. If you walk off the plane and the front door of the terminal is there. No, no, sorry, you can't walk on the ramp. You have to get in the van and take you over. It's, you know, $500 a person. They can.
Yeah.
You know, and they figured, hey, the guy just showed up with this $50 million plane. He's not going to complain about an extra $10,000. This is 100% scale of the Gulfstream 550. That's the 3 sections I'm talking about. You got the kitchen door here, the galley door, and most airplanes, the front section has these 4 single seats. This is really the normal setup. Again, the normal setup on most airplanes is a conference table of 4 and a credenza Sometimes you get 2 chairs here, sometimes you get a couch. This is really a changeable spot. This also pushes down, this becomes a bed. Then there's a divider here that makes this a separate bedroom. This back, sometimes there's 2 chairs and 2 chairs, sometimes there's a conference table, sometimes there's 1 couch and 2 chairs. These 2 divans, they come together and it becomes a king-size bed. And then they have the bathroom here. So if you really wanted to have your own bedroom, you close this door, you sleep here, you have your bathroom here. And if you have other guests, They're up here, and also the flight attendant can serve them because the galley is in the front. They make these with the galley in the back. About a third of these Gulfstreams have the galley in the back.
Really? Why is that? If the galley is in the back, where's the restroom? In the front?
No, it's behind the galley. And there's another bathroom in the front. It's a smaller bathroom for the crew and for these people sitting up here. It's not as luxurious, but it's a bathroom up there.
What is the hour mark in terms of flight time where you're like, it might make sense to consider buying a jet? And what's one where it just absolutely, no matter how much money you have, it's just stupid?
If you fly under 150 hours a year, it just doesn't make sense. Not financially, you know, go get a fractional. That's the next best thing to owning an airplane.
So for example, my line of thinking was once I return back to London, at the moment I probably only fly 50 hours a year private. When I move back to London and there's no more Emirates, I know that'll go up. Yeah, let's say like for example, even 100 hours. I guess now looking at this math, even at 100 hours, it seems like there's no reality where it makes sense to buy a jet?
Absolutely not. Really, for 100 hours, buying a fractional is the smarter thing to do. By the way, whatever you think you're going to use when you own a plane, you will do it 50% to 80% more when you have that airplane. Because it's just the ease of just calling up and saying, I want to go tomorrow to such and such a place, and we'll come back tomorrow night. If you were going to charter a plane or fly commercially, how much is it going to cost me to do that? You know, I got a commercial, I can't come back, I got to do it the next day. I'm not even going to go. You won't exercise some of the opportunities as if you had your own airplane. With an airplane, you would just say, let's go. Because again, that variable cost, the more you fly, the less it costs for the fixed cost. So it keeps costing you less per hour the more you fly it.
Pretty good incentive.
Yeah. And you could take 3 people from your office if you have to go, or friends or whatever. It just makes it much more user-friendly. All right.
Well, thank you very much, Steve. Much appreciated.
I'll be waiting for that phone call when you say I'm ready.
Give it 2, 3 years.
Okay, I'm a patient guy. I'm not going anywhere. I don't think.
