Everything You Need to Know About the Gulfstream G700

The maintenance expenses of a Gulfstream G700 can be broken down into Direct Operating Costs and Fixed Costs.

Direct Operating Costs are variable and depend on the number of hours flown annually. Assuming you fly between 200-400 hours per year, the Direct Operating Cost per hour is estimated at $6,000 based on fuel cost of $7.23 per gallon.

Fixed Costs cover crew salaries, insurance, jet management fees, and other expenses. These costs sum up to approximately $988,000.

If you fly approximately 200 hours per year, your maintenance expense would be calculated as follows:
Direct Operating Cost: $6,000 per hour x 200 hours = $1,200,000
Fixed Costs: $988,000
Total Maintenance Expense: $1,200,000 + $988,000 = USD $2,188,000

If you fly approximately 400 hours per year, your maintenance expense would be calculated as follows:
Direct Operating Cost: $6,000 per hour x 400 hours = $2,400,000
Fixed Costs: $988,000
Total Maintenance Expense: $2,400,000 + $988,000 = USD $3,388,000

Additionally, it’s important to consider other financial expenses, such as depreciation. In the first year, the depreciation expense is estimated to be roughly $2,250,000. You would also be responsible for aircraft mortgage interest, which is approximately 20% of your loan amount based on the 2026 Libor Interest Rate.

Based on the given assumptions of flying 200 hours per year, fuel cost at $7.23 per gallon, and mortgaging 50% of the aircraft, the estimated real cost of owning a Gulfstream G700 in the first year would be approximately $5.15 million. This includes the maintenance expenses discussed earlier, as well as the additional financial expenses such as depreciation and aircraft mortgage interest. It’s important to consider that these numbers are approximations and can vary based on individual circumstances and specific financial agreements. These number also excludes the extra high landing fee in Asian airport such as Tokyo, Hong Kong, Beijing which is about USD 18000 per landing.