When is it profitable to buy an aircraft for a company, and when is it better to stay with a charter?

Business aviation is no longer the exclusive domain of the largest corporations. According to KPMG’s report “The Luxury Goods Market in Poland,” the fleet of private airplanes and helicopters in Poland in 2021 already numbered 1,769 aircraft—64 more than the previous year— and interest in purchasing their own aircraft among Polish entrepreneurs is steadily growing. More and more companies are asking the same question: Is it better to invest in their own aircraft or to use charter services flexibly, depending on their needs? The answer is not simple and depends on many variables: the frequency of business travel, cost structure, type of business, and appetite for managing a complex asset. As a distributor of airplanes and helicopters, I observe these decisions up close and know that a mistake in this choice can cost hundreds of thousands of euros a year.

When Should a Company Buy an Airplane? – Key Financial Considerations

Buying an Airplane for a Business is primarily worthwhile when a company uses air travel regularly and extensively. Industry experts unanimously agree that full ownership of an aircraft becomes financially viable at around 150–200 flight hours per year, and in the case of larger jets, even as low as 300 hours. Below these thresholds, fixed costs place a proportionally greater burden on the budget than the cost of chartering for the same number of hours. It’s also worth considering that owning your own aircraft offers something no charter can guarantee: absolute availability at any time of day or night, complete privacy for business discussions, and the ability to serve routes inaccessible to scheduled airlines. Companies operating in industries that require a rapid response to events in remote locations—such as the energy sector, precision agriculture, infrastructure construction, or investment oversight—particularly value this independence.

 

A key argument in favor of purchasing a private jet is control over the company’s image and consistency in the passenger experience. Owning a private jet allows for full customization of the interior, as well as the choice of in-flight catering and service standards. For companies that host important clients or partners, traveling on a corporate aircraft becomes part of the brand experience. What’s more, owning a private aircraft carries real residual value—market research shows that high-quality turboprop aircraft retain up to 70–75% of their initial value after 5 years of operation, making them an asset with relatively good liquidity compared to other modes of transportation. It is worth remembering, however, that this value depends on the aircraft’s technical condition and its regular, professional maintenance.

Total Cost of Ownership vs. Chartering – What the Numbers Say

Before you make a decision, you need to look at the specific numbers. The annual operating cost of a private aircraft is approximately 8–10% of its market value. For small piston-engine aircraft, this translates to expenses of 30,000–50,000 EUR per year; for turboprop aircraft, 100,000–200,000 EUR; and for business jets, from 400,000 to as much as 1,000,000 EUR—and that’s without factoring in the purchase price or depreciation. Fixed costs, such as insurance, hangar storage, and airworthiness certificates (CAMO), are incurred regardless of whether the aircraft ever takes off. In Poland, hangar storage alone costs between 500 and 3,000 EUR per month, depending on the location and size of the aircraft. On top of that, there are variable costs: fuel, technical inspections, consumable parts, and—if you’re not the pilot—crew salaries.

On the charter side, the picture is different. Private jet charter is a flexible “pay-as-you-go” model—no fixed costs, no operational management, and no responsibility for maintaining airworthiness. In 2026, market rates for turboprop aircraft are approximately $2,000–$3,000 per flight hour, for small jets (light jets) $3,500–$4,500, and for midsize jets $4,000–$6,000 per hour. However, it should be noted that the total cost of a charter flight is typically 20–40% higher than the base rate, due to airport fees, fuel, aircraft positioning, and taxes. A flight from Warsaw to Kraków in a small single-engine aircraft for three people costs from 1,500 EUR, while a flight in a jet for six people costs from 8,000 EUR.

The table below summarizes the key differences between the ownership model and chartering:

One way to optimize ownership costs is to make the company’s aircraft available to a charter operator when the company does not need it. According to industry data, chartering one’s own aircraft can reduce ownership costs by as much as 80%. A typical scenario involves approximately 200 hours of owner flights and 150 hours of commercial charter flights per year—this structure allows costs to be kept at an acceptable level without sacrificing the aircraft’s availability for the company’s own needs.

What types of aircraft should you consider when making a corporate purchase?

Choosing the right model is key to the entire calculation. For companies taking their first steps in business aviation, Cessna aircraft from the piston and turboprop families are the ideal starting point. The Cessna Grand Caravan is an example of an aircraft that combines low operating costs with a large payload capacity and the ability to operate from short runways—making it well-suited for serving several company branches or transporting a larger group of employees. At the entry level, the Cessna Skyhawk or Cessna Skylane is an excellent choice, offering low operating costs and excellent service availability worldwide.

For companies that need the range and speed of a jet but have a moderate operating budget, the light jet segment offers several excellent options. The Citation M2 Gen2 is the smallest and most economical jet in the Cessna Citation family, with a range of 1,550 nautical miles and a list price of approximately $6.15 million—ideal for regional flights in Europe. For more demanding needs, the Citation CJ3+ offers a range of 2,040 nautical miles, nine passenger seats, and advanced Garmin G3000 avionics, with an asking price of approximately $9.3 million. When a company needs transcontinental range and a prestigious cabin, it’s worth considering the Citation Latitude or Citation Longitude—these are super-midsize and midsize segments, offering the comfort of a full-stand-up cabin and a range capable of serving most European routes nonstop. For customers requiring helicopter transport—for example, between an airport and a field office— MD Helicopters models such as the MD 600N or MD Explorer may be the solution, as they perfectly complement a fixed-wing aircraft in a company’s integrated fleet.

When Is Chartering a Better Option?

Chartering is the better option in any scenario where flight frequency is low, irregular, or highly varied geographically. If a company flies fewer than 100 hours per year, charter is almost always a more economically sound choice than ownership. With such low flight hours, the fixed costs of owning an aircraft are spread over too few hours, causing the cost per flight hour to rise dramatically. Industry studies indicate that as many as 80% of privately owned aircraft are underutilized, which means capital is tied up to the owner’s disadvantage.

Chartering is also a better choice when routes are highly varied and require different classes of aircraft. Sometimes a short turboprop flight to another city in Poland is sufficient, while other times a spacious cabin is necessary for a flight to Dubai with several clients. No single aircraft is optimal for all these missions at once. Chartering provides access to the full spectrum of aircraft, tailored to specific needs on a case-by-case basis. It’s also worth keeping the operational aspect in mind: managing your own aircraft entails responsibility for CAMO (Continuing Airworthiness Management Organization), insurance, crew training, and regulatory documentation—in effect, running a mini-airline alongside your main business. With chartering, this entire burden falls on the operator.

The third scenario in which chartering is the dominant option is when a company is in the growth stage and its aviation budget is unpredictable. Purchasing an aircraft is a financial commitment that spans many years. Chartering allows a company to scale its expenses precisely according to current needs, without tying up equity or credit capacity in assets that are difficult to liquidate quickly. At this point, it’s worth consulting with specialists in ancillary services who can conduct a comprehensive cost-benefit analysis tailored to the company’s specific situation.

Tax Considerations for Purchasing an Aircraft for a Business in Poland

Purchasing an aircraft for a business offers specific tax benefits, provided that the aircraft is actually used for business purposes. The aircraft can be classified as a fixed asset and depreciated over 10 years, which means annual tax deductions that reduce the tax base. Importantly, unlike passenger cars, the regulations on tax-deductible expenses do not include restrictions specific to aircraft—operating expenses, including fuel, inspections, and repairs, may be fully included in tax-deductible costs.

The situation regarding VAT is equally favorable. In a 2019 interpretation, the Director of the National Tax Information Office confirmed that a company purchasing an aircraft to streamline its operations may reduce the amount of tax due by the input tax included in invoices for lease payments, fuel, and consumables—provided there is a direct link to taxable activities. Proper documentation is key: records of business flights, travel orders, and a description of the purpose of each flight. In the event of an audit, tax authorities require evidence that the aircraft serves the company’s actual needs and is not used for private purposes. In the case of an operating or finance lease, the payments are treated as an operating expense, which may be more advantageous from a cash flow perspective than a cash purchase. It is advisable to consult a tax advisor specializing in high-value fixed assets, as the specifics of classification and accounting depend on the nature of the industry and the ownership structure.

How to Make the Right Decision – Practical Tips

The decision on whether to purchase a corporate jet or continue chartering should be based on a thorough analysis, not on prestige or emotion. Start by auditing your business travel over the past 12–24 months: tally the number of flights, analyze the routes, calculate the hours, and assess how variable your needs are in terms of aircraft class. If the results consistently show more than 150–200 hours per year on similar routes, owning your own aircraft starts to make sense—in that case, it’s worth preparing a detailed Total Cost of Ownership (TCO) model for several specific models.

Keep in mind that there are intermediate models between full charter and full ownership: fractional ownership, jetcard programs with prepaid flight hours, or a leaseback arrangement, in which you purchase the aircraft, and the operator manages it commercially, covering part of the costs with your rental income. These models often prove to be the optimal solution for companies flying 100–200 hours per year that want priority access without the full burden of ownership costs. For more information on the aircraft available on the Polish market and the various purchase models, visit our blog, where we regularly analyze business aviation trends in Central Europe.

Regardless of the path you choose, an experienced aviation distributor can help you conduct a thorough comparative analysis and identify the model—whether purchase, lease, or co-ownership—that best meets your company’s actual needs. Buying an aircraft for your company is a decision you make once every many years, so it’s worth basing it on comprehensive data.

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FAQ

How many flight hours per year make it cost-effective for a company to purchase an aircraft?

Industry experts point out that full ownership of an aircraft begins to make financial sense when annual flight hours reach approximately 150–200 for smaller jets and 300 hours for larger aircraft. Below these thresholds, chartering is usually the more cost-effective option when all fixed ownership costs are taken into account.

Can an airplane purchased for a company be claimed as a tax deduction?

Yes. The aircraft is a fixed asset of the company and is subject to depreciation over 10 years. Operating costs, such as fuel, maintenance, and repairs, may be fully deducted as business expenses. It is also possible to deduct VAT on the purchase and operation of the aircraft, provided that it is used for taxable activities.

What are the approximate annual costs of maintaining a company aircraft?

Annual costs range from 30,000 to 50,000 EUR for small piston-engine aircraft, from 100,000 to 200,000 EUR for turboprop aircraft, and for business jets, 400,000–1,000,000 EUR. This represents approximately 8–10% of the aircraft’s value. Added to this are hangar fees (500–3,000 EUR per month in Poland) and potential crew costs.

What is a leaseback, and is it profitable?

A wet lease involves purchasing an aircraft and transferring it to an airline operator, which manages it commercially, granting you priority access in exchange for a share of the charter revenue. According to industry data, this arrangement can reduce ownership costs by as much as 80%, but it requires careful selection of an operator and a thorough review of the contract.

What types of aircraft should a company consider as its first aviation assets?

For companies just starting out in business aviation, good options include the Cessna Grand Caravan (a turboprop, versatile, with low operating costs per seat) or the Citation M2 Gen2 (the most economical business jet in its class, with a range of 1,550 nm, priced at approximately $6.15 million). The choice depends on the required routes, the number of passengers, and the planned frequency of use.

When purchasing an airplane for a company, is it necessary to have a pilot employed by the company?

Not necessarily. Many owners use the services of third-party operators who provide trained pilots. It’s also possible to enter into an aircraft management agreement, under which the operator handles everything—pilots, maintenance, insurance, and administration—while the owner simply uses the aircraft.