Operating a Gulfstream G550 entails substantial costs, but these can be mitigated through strategic chartering. The annual budget for flying a Gulfstream G550 is approximately $1,665,068 for 200 hours or $2,588,136 for 400 hours. These figures incorporate both direct and fixed costs. Direct costs include fuel, maintenance, and engine overhaul, while fixed costs cover crew salaries, training, hangar fees, insurance, and management fees.
Factoring in charter revenue can significantly reduce the owner’s overall costs. A Gulfstream G550 typically charters for about 500 hours annually, potentially offsetting the annual budget by an average of $750,000. This revenue can help cover various operating expenses, making the effective hourly cost for the owner more manageable.
For instance, when charter hours are considered, the cost per mile decreases due to the increased flight hours spreading out the fixed costs. The G550 averages 536 mph, translating to a cost of approximately $15.53 per mile for 200 hours, dropping to $12.07 per mile when flown for 400 hours annually. This efficiency underscores the importance of maximizing flight hours to optimize the economic benefits of owning and operating a Gulfstream G550.
