Masters in Business: "At The Money: What Does it Take to Buy Your Own Jet?"

Host: Barry Ritholtz, Bloomberg
Guest: Preston Holland, Founder of Prestige Aircraft Finance, host of The VIP Seat podcast, and author of the Private Jet Insider newsletter
Date: August 20, 2025

Episode Overview

In this episode, Barry Ritholtz explores the world of private jet ownership with Preston Holland, an expert in aircraft financing and private aviation. The discussion demystifies who can afford private jets, the costs and logistics involved, the range of aircraft available, and the rise of fractional ownership. Holland offers candid, practical insights, blending real-world data with relatable anecdotes, to guide listeners through the realities of buying and owning a private aircraft.

Key Discussion Points and Insights

1. Who Can Afford a Private Jet?

• Myth-busting the billionaire's club:
  • "You don't need to be a billionaire. And actually most of my clients are not billionaires...Typically, what I'm seeing is a net worth of somewhere between 100 and $200 million as kind of the starting point."
    — Preston Holland [02:09]
• Net worth matters, but so do tax strategies and business cash flow.
• Bonus depreciation can offset costs for high-net-worth individuals.

2. Depreciation and Resale Values

• Jets generally depreciate like cars or boats, but market conditions can invert that.
  • "Covid...If you watch the valuation of aircraft between 2018, 2019 and 2021, they appreciated significantly."
    — Preston Holland [03:24]
• Some models, due to high demand and long wait lists, have temporarily appreciated or held value (e.g., Phenom 300, Pilatus PC12).

3. Range, Size, and Price of Jets

• Wide spectrum of private jets:
  • Light jets: Best for regional trips (e.g., Atlanta to Charleston).
  • Large jets: Required for international/nonstop transatlantic flights.
• Price range:
  • Entry-level pre-owned jet: ~$1–2 million
  • Top-end (e.g., Gulfstream G700 like Jeff Bezos): $75 million
    — Preston Holland [05:30]

4. Costs of Ownership: Fixed vs. Variable

• Fixed Costs (paid regardless of flight hours):
  • Crew salaries and training, aircraft management, hangar rental, insurance, subscriptions (nav aids, etc.)
  • Fixed costs:
    • Light jets: $400,000–$500,000/year
    • Large jets: $1 million+/year — Preston Holland [06:39]
• Variable Costs (incurred per flight/hour):
  • Fuel (Jet-A fuel: $5.50–$8.50/gallon, region-dependent)
  • Maintenance programs (can be budgeted per flight hour)
    • Example: "The Global 5000 is burning $3,000 of fuel per hour." [09:08]
  • Example trip (NYC to LA in a Global 5000): ~$38,281 in variable costs
    — Holland [09:44]

5. Maintenance Expenses

• Most owners buy hourly maintenance programs (e.g., JSSI) to smooth out costs and avoid surprise bills.
• Example: "If you were to amortize your maintenance expense over your hourly...the Global 5000...is going to be around $4,100 per hour."
  — Holland [11:53]

6. Requirements for International/Transatlantic Flights

• Large cabin jets (G450, G550, G650, Global 5000/6000) required for true intercontinental range with full amenities and crew. — Holland [12:24]

7. Pilot Shortage and Crew Issues

• Commercial pilot shortages also impact private aviation.
• Pilots need specific "type ratings" for each make/model, plus regular recurrent training.
  • "Every pilot can only fly so many types of aircraft ... When you're looking at buying an aircraft, one thing that I advise clients to do a lot of times is follow the big dogs."
    — Holland [13:25]
• Following large fleet operators' models can make pilot recruitment easier.

8. Fractional Ownership vs. Full Ownership

• Fractional offers flexibility and less responsibility, but less freedom/spontaneity vs. sole ownership.
  • "Fractional is the easy button ... you're paying somebody to deal with all the headache and you show up and you get on the airplane and you go."
    — Holland [16:30]
• With full ownership, your plane and pilots are always on your schedule.

9. Advice for First-time Buyers

• "Assemble a good transaction team. That is the number one thing that you have to do."
  — Holland [17:25]
• Essential team members:
  1. Broker – acts as quarterback, manages sourcing and diligence
  2. Aviation attorney – handles complex FAA-specific issues
  3. Aviation tax consultant – ensures compliance with IRS and FAA regulations
  4. Financier – arranges the best loan structure and rates, if needed

Notable Quotes & Memorable Moments

• On the real requirements to buy a jet:

  • "Not only is net worth something to consider, but also what does this do for my tax strategy and tax planning? ... Generally speaking, when we're thinking about that, it's really in the $100 to $200 million mark."
    — Holland [02:09]

• On market anomalies:

  • "The wait list for a Pilatus PC12 is five years. ... You may be able to fly it for a little bit and then get out of it a little higher than what you have."
    — Holland [04:30]

• On the 'easy button' of fractional ownership:

  • "I have a lot of billionaire clients and billionaire friends that say, look, I don't want to mess with this. I just want the easy button. Fractional is the easy button."
    — Holland [16:30]

• On buying your first jet:

  • "Assemble a good transaction team. ... Your in-house attorney is going to pull their hair out trying to figure out how to do this. Where the aviation attorney is going to be easy."
    — Holland [17:25]

Timestamps for Key Segments

• [02:09] – What it really takes financially to buy a private jet
• [03:24] – Depreciation vs. appreciation in jet values
• [05:30] – Types of private jets and price range breakdown
• [06:39] – Fixed and variable costs of jet ownership
• [09:44] – Real-world cost example: New York to LA on a Global 5000
• [11:44] – Maintenance, parts, and hourly programs explained
• [12:24] – What you need for international flights
• [13:25] – Pilot requirements and the “big dogs” strategy
• [15:42] – Fractional ownership pros and cons
• [17:25] – Step-by-step advice for buying your first plane

Takeaway

Buying a private jet is both less and more accessible than many imagine—under certain financial conditions, it’s possible, but ownership carries heavy financial, operational, and regulatory responsibilities. For those who value convenience and lower stress, fractional ownership might be a smart alternative, but real spontaneity and control come with full ownership. Either way, assembling the right team of specialists is essential for navigating the complex skies of private aviation.

For further insight, listen to the full episode of "Masters in Business: At The Money: What Does it Take to Buy Your Own Jet?" with Barry Ritholtz and Preston Holland.