Charter pricing is more transparent than most people think. Here is a complete breakdown of every cost component, hourly rates, minimums, fees, and taxes.
Understanding Private Jet Charter Pricing
One of the most common questions Tim receives from first-time charter clients is: "Why does the quote look different from what I expected?" The answer is that charter pricing has several components that are not always visible in the headline rate. Here is a complete breakdown.
The Hourly Rate
The hourly rate is the base cost of operating the aircraft. It covers the operator's direct costs: fuel, crew, maintenance reserves, and insurance. Hourly rates vary significantly by aircraft category:
- Light Jet: $4,500 to $6,500 per hour
- Midsize Jet: $6,500 to $8,000 per hour
- Super Midsize: $8,500 to $12,000 per hour
- Heavy Jet: $12,000 to $18,000 per hour
Minimum Flight Time
Most operators bill a minimum of 1.5 to 2 hours per leg, regardless of actual flight time. This covers the cost of positioning the aircraft and crew. On a short route like Scottsdale to Las Vegas (actual flight time: ~1 hour 10 minutes), you will typically be billed for 2 hours.
Repositioning Fees
If the aircraft is not based at your departure airport, you may be charged a repositioning fee to cover the cost of flying the aircraft to your location. This is sometimes called a "ferry fee" or "deadhead" charge.
Handling Fees
FBO handling fees cover ground services: ramp access, fueling coordination, catering setup, and crew accommodations. These typically range from $400 to $1,500 per stop, depending on the FBO and airport.
Federal Excise Tax
All domestic charter flights in the United States are subject to a 7.5% Federal Excise Tax (FET) on the total charter cost. This is a federal tax collected by the operator and remitted to the IRS.
Segment Fees
A segment fee of $4.80 per passenger per segment is also assessed on domestic charter flights.
What a Complete Quote Looks Like
For a Scottsdale to Orange County round trip in a midsize jet with 6 passengers:
- Aircraft: Citation XLS+
- Hourly rate: $7,500
- Total billed hours: 4 hours (2 per leg, minimum)
- Base charter cost: $30,000
- Handling fees: $2,400 (2 stops x $1,200)
- Federal Excise Tax (7.5%): $2,430
- Segment fees: $57.60 (6 pax x 2 segments x $4.80)
- Total: approximately $34,887
Why Axon Quotes Are Transparent
Your advisor provides fully itemized quotes on every trip. No hidden fees, no surprises at invoicing. If you have questions about any line item, your advisor will explain it.
Axon Jets Advisory
Founded by a CFI with 15+ years in private aviation.