Aircraft generally lose value over their useful lives, but exceptional market conditions can produce short-term appreciation. Pandemic-era demand and long manufacturer wait lists allowed some owners to resell newly delivered aircraft at premiums.

Lifetime depreciation remains the normal pattern
Aircraft values rose significantly around 2020-2021
Long delivery queues can create premiums for nearly new aircraft
The Phenom 300, Praetor models, and PC-12 are cited as examples

“Generally speaking, over a lifetime, there is a real depreciation factor. You sell for less than what you bought it for”
Preston Holland · 02:46

“The wait list for a lot of PC twelve is five years.”
Preston Holland · 03:44

#depreciation#aircraft values#scarcity#resale market

Explainer· 3

Explainer01:04

The Financial Starting Point for Private-Jet Ownership

Holland says his clients generally do not need billionaire status, but professionally crewed ownership still demands considerable wealth and business cash flow. He places the typical starting net worth around $100 million to $200 million while emphasizing that tax strategy and liquidity also matter.

Typical starting net worth is around $100 million to $200 million
Business cash flow matters alongside net worth
Tax planning and bonus depreciation can affect the economics
The threshold generally applies to light or midsize jets

“You don't need to be a billionaire, and actually most of my clients are not billionaires.”
Preston Holland · 01:10

“it's really in one hundred to two hundred million dollar mark before you're starting to buy something like a light jet or maybe a mid…”
Preston Holland · 01:43

#net worth#affordability#private jets#tax planning

Explainer04:03

From $1 Million Regional Jets to $75 Million Global Aircraft

Aircraft size, range, and price move together, with light jets serving shorter regional missions and large aircraft handling long-haul travel. Holland describes an entry point of roughly $1 million to $2 million for an old, small jet and a top end around $75 million for a new Gulfstream G700.

Light jets are suited to regional routes
Older small jets can start around $1 million to $2 million
The Gulfstream G700 carries a roughly $75 million sticker price
Mission range should determine aircraft class

“your kind of get in price for a jet, and this is you're talking pretty old, pretty small, is going to be around a million…”
Preston Holland · 05:07

“the top end of the market is going to be what Jeff Bezos just took delivery of, which is a G seven hundred at seventy…”
Preston Holland · 05:17

#aircraft classes#range#pricing#light jets

Explainer09:38

How Maintenance Programs Turn Million-Dollar Bills into Hourly Costs

Engine and parts programs collect hourly payments and cover eligible maintenance when it occurs. This converts unpredictable overhaul bills into steadier operating expenses, though owners may pay a premium for predictability and coverage.

Maintenance is commonly modeled on an hourly basis
Engine overhauls can cost several million dollars
Programs amortize future overhaul costs across flight hours
Parts coverage can be purchased separately
Coverage level materially affects the hourly charge

“it's going to amortize it on a per hour basis, so I pay per hour I pay to the service, and then they pay my…”
Preston Holland · 10:13

“you're willing to pay kind of stretched out over time as opposed to large chucks.”
Preston Holland · 10:53

#maintenance#cost smoothing#engine overhaul#risk management

Q&A· 1

Q&A11:17

What Kind of Jet Can Fly Nonstop from New York to Europe?

Comfortable nonstop service from New York to Paris generally requires a large-cabin aircraft. Holland names Gulfstream and Bombardier models that can perform the mission and notes that this class typically includes two pilots, substantial cabin facilities, and sometimes a flight attendant.

Large-cabin aircraft are required for comfortable transatlantic range
The G450 may reach London but is marginal for Paris
The G550 and G650 can handle longer missions
Global 5000, 6000, and 6500 models are also candidates
Long-haul cabins commonly carry two pilots and enhanced facilities

“you're really gonna have to get into that large cabin to comfortably get NonStop from New York to Paris.”
Preston Holland · 11:44

#transatlantic#large cabin#gulfstream#bombardier

Tool· 1

Tool07:41

How Fuel Burn Changes Across Private-Jet Classes

Holland uses an aircraft-cost calculator to compare hourly fuel consumption across specific models. Consumption ranges from under 200 gallons per hour for a CJ4 to roughly 490 gallons per hour for a Global 5000, whose fuel alone can cost about $3,000 per hour at the assumed price.

A CJ4 burns about 198 gallons per hour
A Citation XLS burns about 227 gallons per hour
A Challenger 300 burns about 280 gallons per hour
A Global 5000 burns about 490 gallons per hour
Aircraft speed complicates direct fuel-burn comparisons

“The Challenger three hundred, which burns two hundred and eighty gallons per hour.”
Preston Holland · 08:01

“the Global five thousand is burning three thousand dollars of fuel per hour.”
Preston Holland · 08:31

#fuel burn#operating costs#aircraft calculator#jet fuel

Takeaway· 1

Takeaway14:24

Fractional Ownership Is the Easy Button—with an Availability Trade-Off

Fractional ownership reduces administrative work and gross cost but cannot always match the immediate availability of a wholly owned aircraft. Contracts may guarantee an aircraft with sufficient notice while offering no guarantee for a departure only hours away.

Fractional access can resemble charter more than full ownership
Guaranteed availability depends on contractual notice periods
A wholly owned aircraft can be positioned for rapid departure
Fractional providers handle pilots, management, and operational headaches
Some wealthy clients choose fractional primarily to reduce stress

“When you own an airplane, it is waiting for you at the hangar”
Preston Holland · 15:19

“Fractional is the easy button.”
Preston Holland · 15:46

#fractional ownership#availability#convenience#private aviation

Frameworks in this episode

Aircraft Acquisition Transaction Team

Fixed-and-Variable Aircraft Cost Model

Follow the Big Dogs Aircraft Rule

Insights & moments

⚡Myth Buster· 1

Private Jets Usually Depreciate—Except When Scarcity Takes Over

✶Explainer· 3