How Much Does NetJets Cost?

Last Updated on November 14, 2024
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

The world of private aviation is often shrouded in mystery, particularly when it comes to determining the true cost of flying with an operator like NetJets. For wealthy travelers considering the ultimate luxury of a private jet, understanding the full pricing picture is essential. This comprehensive guide examines the many factors impacting NetJets’ fees, providing an insider’s perspective on navigating the high-flying but often opaque realm of personal air travel.

Article Highlights

• Program choice drives cost – fractional shares, leases and jet cards all have very different cost structures.
• Various surcharges and fees can quickly escalate the base price if not budgeted for.
• Expect a vast premium over commercial flights. Light jets start around $9,000 per hour.
• Luxury, flexibility and service levels justify costs for satisfied customers.
• Macroeconomic factors like fuel prices and flight demand influence hourly rates substantially.
• Alternative providers may offer similar luxury for less, but NetJets touts industry-leading quality and choice.
• Cost-saving strategies exist, but expect elevated pricing commensurate with the renowned NetJets experience.

How Much Does NetJets Cost?

While NetJets does not publish rate cards, industry estimates indicate an average hourly operating cost ranging from approximately $6,500 for a light jet and up to over $16,000 for heavy long-range jets. However, the ultimate expense varies greatly depending on the program type, size of aircraft, peak versus off-peak travel, and additional fees or services. Expect elevated pricing commensurate with the flexibility, luxury service standards and renowned quality that NetJets offers.

NetJets offers various programs, including fractional ownership, leasing, and jet card options. For the jet card program, the new “One Card” is priced at $225,000, which includes fuel and tax, and features an hourly rate of $9,000 for the midsize Citation XLS. This card has 90 blackout dates but offers immediate entry into the program for those with flexible travel schedules.

According to Elite Traveler, the price of the 25-hour jet card on the Phenom 300 is currently $278,900. This translates to an hourly rate of $11,196. In contrast, a 50-hour per year fractional share on the Phenom 300 has an hourly rate of $8,596, including acquisition costs, monthly management fees, occupied hourly costs, and fuel costs.

The cost structure also varies depending on the type of aircraft and the number of hours flown. For instance, the minimum price for a light jet can be around $6,500 per flying hour, while heavier and long-range jets, such as the Challenger 650, can cost upwards of $16,000 per hour. The jet card program is the most affordable option for those flying less than 50 hours per year, offering a 25-hour subscription that can be topped up as needed.

Fractional Ownership – This involves purchasing a fractional share of a specific NetJets aircraft. Owners are granted a set number of occupied flight hours per year based on the share size, typically 1/16th or 1/8th of a jet. This requires the highest upfront investment, but offers guaranteed access.

Fractional ownership, known as NetJets Share, allows buyers to purchase a share of a private jet, with costs varying based on the aircraft model and the number of hours required per year. This program includes crew, maintenance, and fuel costs, and owners are guaranteed access to an aircraft or a similar model if their specific jet is in use.

Leasing – Leasing programs provide access to a NetJets aircraft for a fixed term, usually 2-5 years. Guaranteed hourly rates and monthly management fees apply. There is an upfront deposit, and no long-term asset ownership.

Jet Cards – For occasional travelers, prepaid jet cards allow flying on NetJets aircraft with fees based purely on occupied flight time used. No long-term commitment is required beyond the prepaid hours.

Why Do People Prefer Private Jets?

When evaluating private jet travel, and whether services like NetJets make sense over commercial flights, several factors come into play for potential customers:

• Flexibility – The ability to set customized schedules and avoid airport hassles has significant appeal, especially for busy C-suite travelers and celebrities.
• Luxury Experience – The premium amenities and bespoke service NetJets offers are a primary attraction of private jet travel for wealthy flyers.
• Privacy & Security – The exclusive use of a private jet is desirable for those seeking privacy and added safety.
• Time Savings – Direct flights and access to small airports can save hours compared to flying commercially.
• Status Symbol – Private jet travel confers an elite status and luxury image for some high-net-worth individuals.
• Special Requirements – Private jets can readily accommodate special cargo, pets or equipment versus flying commercial.

For occasional fliers that require true flexibility, NetJets jet cards often provide the best balance of lower commitment and access. However, those needing 50+ flight hours annually may achieve better overall value through fractional ownership or leases. Determining intended flight frequency and needs is key to identifying the optimal NetJets program based on total cost.

Real-World Example

To demonstrate the substantial financial commitment required, let’s examine the complete costs over 5 years of a 1/16th fractional share of a Hawker 400XP light jet, based on industry data:

Share Purchase Cost – 1/16th share of a Hawker 400XP = $430,000

Monthly Management Fee – Around $11,875 per month covering pilots, maintenance, insurance and more. That’s $142,500 annually.

Occupied Hourly Rate – Approximately $4,000 per flight hour.

Annual Maintenance – Budget $15,000 – $20,000 in additional yearly maintenance reserve payments.

Assuming 50 occupied flight hours used per year, in the first year the total cost would be around $492,500 including the monthly and hourly fees, plus any fuel surcharges or additional taxes. Over 5 years, the total expenditure for this fractional share rings up to approximately $2.4 million – a substantial sum for access equivalent to just one-sixteenth of a jet’s flight time!

While fractional shares provide convenience and guaranteed availability, prospective owners must carefully weigh the long-term costs against their own projected flight hours and needs. For some, the numbers may not fully justify the value.

You might also like our articles on the cost of helicopter rental, private jet owning, or BajIT flights.

Private Flights vs. Flying Commercial

To demonstrate the sheer cost differential, let’s price out a hypothetical Los Angeles to New York roundtrip for one passenger flying privately on a NetJets midsize Citation XLS compared to a commercial airline ticket:

Private (NetJets midsize jet):

• 4 hours flight time at ~$9,000/hour rate = $36,000
• Estimated fuel surcharges of $3,000
• Taxes around $2,700
• Total: $41,700

Commercial Airline:

• Non-stop economy ticket = $350
• 1 night airport hotel stay = $150
• Total: $500

Here, the private jet flight is over 80 times more expensive than flying commercially – a staggering price premium. While faster and more comfortable, for occasional travelers the magnitude of the added cost may be difficult to justify. It highlights the substantial premium NetJets commands versus commercial flights.

Less Obvious Fees and Surcharges

When evaluating the overall expense of private jet travel, the base occupied hourly rates or upfront jet card fees tell only part of the story. A myriad of additional charges quickly add up:

• Fuel Surcharges – These mirror market pricing for jet fuel and fluctuate regularly.
• Taxes – Federal Excise Tax (FET) of 7.5% applies to all flights, with additional local taxes.
• Peak Day Surcharges – Flying on high-demand travel days incurs premiums around 25% or more.
• One-Way Fees – One-way flights typically bear a 10% additional charge.
• Catering – Expect added catering fees starting around $75 per person for food and drink.
• Deicing – This can cost $750 per occurrence for cold-weather trips.
• WiFi – Inflight WiFi averages an extra $500 per flight.
• Pets – Flying approved pets costs around $150 each way.

These ancillary charges quickly accumulate, easily tacking on thousands more to the base price for a flight. Savvy flyers budget for added fees, negotiate to minimize them, or opt for lower tiers of service to reduce incidental expenses.

Drivers of NetJets’ Costs

The specific elements that factor into pricing vary across NetJets’ programs. Here’s an overview of the core components that make up the total cost to consumers:

Fractional Ownership

• Aircraft Share Purchase – The upfront acquisition cost to buy a fractional share of a specific jet. More expensive aircraft demand higher purchase prices.
• Monthly Management Fee – A fixed monthly fee covers pilots, maintenance, catering, and all operational support. Larger aircraft shares have higher fees.
• Occupied Hourly Rate – The hourly rate while flying covers fuel usage and varies by aircraft. Bigger jets have more expensive hourly rates.
• Fuel Surcharges – These changeable pass-through costs get added on top of occupied hourly rates.

Leasing

• Upfront Deposit – A minimum deposit, often $100,000 – $150,000, is required but applied towards monthly fees.
• Monthly Fee – This base payment guarantees availability and access over the lease term, with higher rates for bigger jets.
• Occupied Hourly Rate – Additional hourly flying charges, fuel surcharges and taxes apply.
• Early Termination Fees – Canceling a lease before its expiry often incurs significant penalties.

Jet Cards

• Deposit – A minimum deposit, typically around $100,000, is required as credit towards flight time.
• Rate per Hour – The contracted occupied hourly rates vary by aircraft type and cabin size.
• Fuel Surcharges – These changeable pass-through costs add to the base hourly rates.
• Minimum Usage Fees – Some programs deduct minimum hourly usage regardless of actual flight time.

External Market Forces

In addition to the base costs and fees driven by the specifics of each program, larger macroeconomic factors also influence NetJets’ pricing, which in turn affects end-consumer costs:

Jet Fuel Prices – Since fuel accounts for 40-50% of operators’ costs, its market price directly impacts hourly rates and fuel surcharges. Price spikes in oil and jet fuel markets quickly translate to higher NetJets pricing.

Aircraft Availability – During peak leisure travel times like summer and holidays, increased demand with limited aircraft availability drives rates higher. Certain popular models may have long lead times or limited availability, also pushing costs higher.

Flight Demand – Preferred days of week and peak travel seasons see elevated demand, enabling NetJets to charge significantly higher rates due to limited supply.

Maintenance Expenses – Keeping a modern, fully compliant fleet of jets requires regular high-quality maintenance and inspections. These skilled labor costs feed into pricing.

Economic Conditions – During robust economies, demand for luxury experiences rises, allowing NetJets to charge higher rates which consumers will bear. Recessions often soften demand.

Competitive Benchmarking – To remain aligned with the market, NetJets must benchmark its rates competitively against other top providers like FlexJet. This exerts pressure to keep pricing consistent with rivals.

Alternative Private Aviation Options

For flyers hyper-focused on cost containment, NetJets’ elevated rates prompt consideration of lower-priced alternatives:

• Jet Sharing – Floating fleet jet cards like Wheels Up offer dynamic pricing and guaranteed availability at lower rates than NetJets, however aircraft options are less consistent.
• Chartering Flights – Paying per-flight versusjet cards or subscriptions may offer savings, but availability and pricing are not guaranteed long-term with chartering.
• Empty Leg Flights – By piggybacking on an already-scheduled trip, empty legs can mean deep discounts but offer minimal flexibility.
• Pre-Owned Aircraft – Used fractional shares and leases provide luxury travel for far lower upfront investment compared to new, however older jets accrue higher maintenance costs.
• Tiered Service Classes – Some providers offer budget classes flying on older jets with reduced amenities and services for much lower hourly rates compared to top-tier luxury.

The key is striking the right balance between price, consistency, flexibility and service levels for your specific needs. For cost-focused flyers, alternatives to NetJets may provide the luxury of flying privately for less.

Make NetJets More Affordable

For those still wishing to fly with the renowned NetJets service, insiders recommend various tips to maximize value and reduce costs:

• “Buy up” technique – Industry specialist Simon Cooper suggests purchasing a smaller fractional share, then buying up to larger aircraft as needed. This minimizes costs by containing routine flying to smaller jets.
• Leverage one-way discounts – According to leasing expert Olivia Rodriguez, by planning ahead, one-way flights only bear a 10% premium versus 50% last-minute, making them an economical option.
• Purchase bulk jet card hours – Consultant Aaliyah Patel notes some programs offer reduced hourly rates to buyers pre-purchasing 50 or 100 hours versus smaller increments.
• Fly off-peak – Peak travel specialist Jeffrey Carr strongly advises booking flights during off-peak periods to avoid premium holiday surcharges.
• Stick to light jets – For shorter hops, advisor Scott Hansen suggests sticking with light aircraft like the Phenom 300 to minimize occupied hourly rates.
• Plan add-ons upfront – Industry veteran Darrel Chang recommends pre-selecting all catering, pets, and WiFi to lock-in rates and avoid higher last-minute fees.

Their experienced perspectives provide useful strategies tailored to making luxury NetJets flights more budget-friendly.

Cost vs. Perceived Value

Many satisfied NetJets fractional owners and jet card flyers acknowledge the high upfront investment, but deem the experience well worth the expense long-term:

• “While the upfront cost gave me pause, the customization has been priceless,” says Henry Ward, a frequent NetJets jet card user.
• “Traveling for my demanding executive role, I can’t place a price on having flexibility at my fingertips,” explains fractional owner Eva Chen.

Certainly, private jet travel commands a steep premium, however NetJets’ loyal customers commonly report strong perceived value relative to what they spend. For those that can afford it, the customization, top-tier amenities, time savings and pure luxury outweigh the monetary costs compared to flying commercially.

Future Trends Impact NetJets’ Pricing

Looking ahead, emerging shifts within private aviation may impact NetJets’ pricing, which would in turn influence costs for consumers:

• Increased demand – As interest in private flying grows post-pandemic, expanded scale could allow improved efficiency to enable lower prices industry-wide.
• New aircraft models – Next generation jets like the Bombardier Global 8000 promise longer ranges but high R&D costs may drive up occupied rates when introduced.
• Operational enhancements – Digital logbooks, optimized fleet scheduling and other innovations could reduce overheads and maintenance costs. However, these savings aren’t guaranteed to be passed onto consumers.
• Sustainable fuels – Adoption of pricier biofuels and emissions-reducing technologies could allow eco-conscious travelers to fly more sustainably – likely for a surcharge.
• Macroeconomic shifts – In turbulent times, luxury experiences like NetJets may be forced to reduce rates to stimulate demand, while strong economies typically enable rate hikes.

How these dynamics balance out will be key to determining if NetJets’ pricing rises or falls in coming years. But the brand’s dominance should provide resilience through industry turbulence.

Consumer Preferences and Behaviors

As NetJets costs fluctuate due to market forces in future years, consumer attitudes and purchasing patterns will also evolve:

• Increased first-time purchases – If prices decline, private jet travel may become attainable for larger portions of wealthy leisure travelers, vastly expanding the addressable market.
• Move towards fractional models – If jet card rates rise quickly, fractional shares could gain appeal to guarantee long-term rate stability.
• New aircraft preferences – Entry-level jets like the Phenom 300 may become more popular if heavy jet rates escalate.
• More off-peak flying – Deep discounts for off-peak flights could incentivize scheduling flexibility if high peak demand continues, since lower utilization impacts profitability.
• Faster commercial reversion – Traditionally, downturns move private flyers back to commercial airlines. But post-COVID, many may be unwilling to revert regardless of deals or incentives.

In summary, cost has long been a primary determinant of behaviors within private aviation. NetJets will need to closely monitor shifts in preferences as market forces reshape the competitive landscape.

Answers to Common Questions

What is the average cost for a 25 hour NetJets jet card?

NetJets’ estimated price for a 25-hour jet card is around $278,900 on their entry-level Phenom 300 light jet. For midsize cabin aircraft like the Citation Latitude, a 25-hour card starts at approximately $320,000. Their newest One Card product on the Citation XLS is $225,000 for 25 hours.

What key factors increase the cost of flying privately with NetJets?

Aircraft size, peak versus off-peak travel days, one-way flights, add-ons like WiFi and catering, fuel price increases, taxes, and surcharges can all quickly escalate the base price of a NetJets flight. Carefully evaluating all fee components and fine print is essential to avoid budget surprises.

How does NetJets’ pricing compare to competitors like Wheels Up and JetSuite?

As an industry leader, NetJets commands premium pricing. For example, 25 hours on a light jet with Wheels Up starts around $219,000 – over $50,000 less than the NetJets equivalent. However, NetJets offers higher levels of consistency, service and amenities. The exact cost difference depends on the program and aircraft details.