Acquisition is not the headline number
Owners almost always overweight the purchase price. On a 10-year hold of a large-cabin aircraft, acquisition typically represents 30–45% of total cost. The other 55–70% — depreciation, crew, maintenance, hangar, fuel, insurance — accumulates quietly and adds up to more than the original ticket. A $30M Falcon 7X, flown 400 hours per year, will cost its owner roughly $52M–$74M all-in over a decade before any resale recovery.
Depreciation is the single largest variable
Depreciation behaviour separates a good acquisition from a bad one. New flagship programs (Global 7500, G700) depreciate 8–12% in year one as the aircraft moves from new-delivery to pre-owned, then settle at 5–7% annually. Mature airframes — late-life GIV-SP, early Global Express — flatten at 3–4% per year because most of the loss has already occurred. The practical implication: a five-year-old aircraft acquired thoughtfully often has materially better total economics than a brand-new one bought at sticker.
Engine program coverage is the single most reliable lever for protecting residual value. Aircraft on Rolls-Royce CorporateCare, Honeywell MSP Gold, or P&W ESP discount 5–15% less at resale than uncovered equivalents. The CorporateCare math covers the per-hour rate vs the resale uplift in detail.
Operating cost is where ownership is won or lost
Crew, maintenance, hangar, and fuel are largely fixed once an aircraft and base are chosen. A heavy jet hangared in Geneva will cost materially more to run than the same aircraft in Lisbon — not because the airframe is different, but because the FBO, fuel, handling, and crew market all run higher. Owners with flexibility on base can save $300K–$600K per year by re-evaluating the home FBO every contract cycle.
When charter offset actually helps
A managed charter program — placing the aircraft on a Part 135 (or EU equivalent) certificate when the owner is not flying — typically recovers 30–60% of fixed operating cost. Lower-mid figures are typical for ultra-long-range cabins (smaller charter demand pool); the higher end is achievable for mid and super-mid aircraft in high-demand regions. Charter offset does not turn the aircraft into a profit center, and aircraft flown heavily on charter accumulate cycles that affect resale.
The conventional ownership-vs-charter break-even sits between 200 and 250 hours of personal flying per year. Below that, charter or fractional almost always wins on fully-loaded cost. Between 250 and 400 hours, the math depends heavily on flexibility, route consistency, and crew preferences. Above 400 hours, ownership economics improve sharply.
What the numbers say to do next
Buyers underestimating the back end of a 10-year hold get caught at the major inspection cycle. Sellers waiting too long watch depreciation absorb the asset's remaining equity. The practical move in either direction is to run the numbers — on the specific airframe, against the actual mission profile — before committing.
Run the numbers on a specific aircraft
We model 10-year TCO on any aircraft you're considering — acquisition through resale, including engine program scenarios and charter offset assumptions. No charge for a first review.