Introduced in 2006 as an upgrade to the Challenger 604, the Bombardier Challenger 605 business jet is produced by Bombardier Aerospace. The 605 offers several upgrades to the 604, including upgraded instrumentation to the Collins Proline 21 Avionics, a rounder tailcone, and larger cabin windows. This article walks through the various costs of ownership for the 605.
The Challenger 605 is a super midsized private jet that claims to match the operating costs of small aircraft. It can achieve a high speed of 870 km/h (470 ktas) or 785 km/h (424 ktas) for long range cruise, and has a maximum range of 4,000 nautical miles (7,408 km). With a cabin length of 25 feet, 7 inches (7.80 m), it can accommodate 10 passengers in a standard configuration.
According to the General Aviation Manufacturers Association roughly 30 to 40+ of these aircraft (or it's predecessors) have been sold each year for the past 15 years.
Here are the overall costs you should expect to encounter over the ownership lifetime of a Challenger 605. Conklin and de Decker provided the figures used in this article.
Cost of Ownership
A new Bombardier Challenger 605 sells for approximately $27m. Used 605s are currently selling for about $15m for 2008 vintage aircraft.
The total cost of ownership per year of the Bombardier Challenger 605 is $3,481,595 including market depreciation of ($1,240,920) or $5,342,974 including book depreciation of $3,102,300. Both figures include fixed costs per year of $724,861.
To Summarize these costs:
|Cost Type||With Book Depreciation||With Market Depreciation|
|Variable Cost per Year||$1,515,813||$1,515,813|
|Fixed Cost per Year||$724,861||$724,861|
|Total Annual Costs||$5,342,974||$3,481,594|
|Costs per hour||$12,631||$8,231|
Fixed Costs per Year
The fixed costs of the Bombardier Challenger 605 primarily consist of crew member salaries and benefits ($400,400), hangar costs ($59,900), insurance (hull $31,023, single limit liability $12,500), recurrent training ($66,800), and aircraft modernization ($33,333). Other costs in the fixed cost figure of $724,861 include refurbishing, computer maintenance program, navigation chart service and weather service. The details are shown in the table below:
|Crew Salaries - Captain||$138,000|
|Crew Salaries - Co Pilot||$95,000|
|Crew Salaries - Flight Attendant||$75,000|
|Crew Salaries - Benefits||$92,400|
|Hangar - Typical||$59,900|
|Insurance - Hull||$31,023|
|Insurance - Single Limit Liability||$12,500|
|Navigation Chart Service||$15,205|
|Computer Maintenance Program||$10,500|
|Total Fixed Cost per Year||$724,861|
Variable Costs per Year
The variable costs of operating the Challenger 605 are dependent upon hours operated and nautical miles traveled. Assuming 175,000 nautical miles and 423 hours per year, owners should anticipate variable expenses of $1,515,813 annually. The largest of these expenses (about 65% of the total variable cost) is fuel costs, which are estimated at $2,346 per hour out of a total variable cost of $3,583 per hour. The 605 is estimated to use 329 gallons of fuel per hour.
The table below shows the breakdown of the variable costs per hour:
|Miscellaneous Expenses - Landing/Parking||$55.10|
|Total Variable Cost per Hour||$3,583.48|
The decision to purchase a jet outright rather than a jet card or fractional ownership is one that should be made carefully after considering not only the costs, but also how you will use the jet and whether it will meet most of your flying requirements.
(The annual and fixed cost estimates are from Conklin & de Decker of Orleans, MA)