Reply To: Budget 2011: Osborne to unveil private jet flight taxBack to Forum
For as long as companies are willing to spend USD$150,000 to cross the atlantic in a private jet, I dont think that there are going to be many complaints if Mr. Osbourne creates a new private jet tax.
All that it will mean is that the super rich (indivduals and coporates) may have to downgrade the fixtures and fittings.
To give you some idea of the numbers involved in running a private jet, longhaul, you have acquisition costs of around $10,000,000 (thats second hand). Work on a budget of around USD$ 30,000,000 for a new state of the art aircraft, capable of crossing the atlantic non stop and thats delivered green (i.e. bare). Another USD$ 5 – 7 million should see it fitted out nicely.
Then you have the annual running costs, crews, maintenance and general day to costs, budget on around 20% of the acquisition costs.
There is one businessman, who jets in to Luton in his Gulfstream 5 (the Ferarri of the skies) on a Monday and then back to Monaco for the weekend. I have no issue with business jets and their uses, They have in part given me an income.
Its all about choice and good luck to the likes of Abramovich who uses his 777 to jet in for the Chelsea home games, G-d only knows what it costs, but its his money.
I think Mr Osbourne is perfectly correct in creating a new private jet tax afterall, I doubt very much that the owners will even notice the additonal costs.
The private pilot that VintageKrug talks about should be unaffected by this tax as the “put put” as he calls them are piston pwered not jet powered.