The operating costs of the Gulfstream G700, a flagship aircraft in the business aviation sector, encompass both fixed and variable expenses, amounting to a significant annual budget. Fixed costs for the G700 are estimated at $1,250,000, covering essential expenses such as crew salaries, insurance, and hangar fees. Variable costs, which include fuel, maintenance, and other flight-related expenses, are projected at $2,000,000. Together, these bring the total annual operating budget to $3,250,000. Despite the high costs, the G700’s potential for generating charter revenue is substantial, with an estimated $1,500,000 in annual earnings. Once the charter revenue is factored in, the net annual operating cost is effectively reduced. For the owner, this adjustment means the hourly operating cost, after accounting for charter profits, is approximately $5,800. This figure is crucial for operators to consider when planning flights and charter operations to ensure financial efficiency and profitability.
