The True Operating Cost of Gulfstream G550
The Gulfstream G550 is a proven ultra-long-range business jet offering 13-seat luxury configuration, 5,950+ nautical mile range, and industry-leading speed. Plan for $480,000–$560,000 annually in operating costs at 100 flight hours, or $4,800–$5,600 per hour. The G550 dominates ultra-premium global operations with unmatched speed, range, and luxury cabin configuration.
Quick Specs: Gulfstream G550
| Specification | G550 |
|---|---|
| Engines | 2 × Rolls-Royce BR725 (16,100 lbf thrust each) |
| Fuel Burn | 420–460 gal/hr cruise |
| Cruise Speed | 540–570 mph |
| Service Ceiling | 51,000 ft |
| Useful Load | 6,100–6,600 lbs |
| Seats | 13 (maximum) |
| Range | 5,950+ nm |
TL;DR: Gulfstream G550 Annual Operating Cost Summary
- Fixed costs: $280,000–$340,000/year (insurance $42,000–$56,000, hangar $44,000–$54,000, annuals $44,000–$56,000, crew training)
- Variable costs at 100 hours: $200,000–$220,000/year (Jet-A fuel, oils, engine reserves)
- Total at 100 hours: $480,000–$560,000/year (~$4,800–$5,600/hour)
- Finance a $21,000,000 G550: Add $310,000/month ($3,720,000/year) at 6.5% over 10 years
- At 50 hours: ~$340,000–$420,000/year (~$6,800–$8,400/hour)
- At 200 hours: ~$680,000–$840,000/year (~$3,400–$4,200/hour)
Ultra-Long-Range Premium Business Jet Operating Costs
Fixed Costs
- Insurance: $42,000–$56,000/year for $20,000,000–$24,000,000 hull with 500+ pilot hours
- Hangar: $44,000–$54,000/year (premium ultra-long-range facility)
- Annual inspection: $44,000–$56,000 labor (ultra-long-range cabin complexity)
- Crew training/proficiency: $18,000–$24,000/year
Variable Costs (per flight hour)
- Jet-A fuel: 440 gal/hr × $5.50/gal = ~$2,420/hour
- Oil and lubricants: $40–$52/hour
- Engine reserves: $68–$84/hour ($170K per engine ÷ 5,000 TBO × 2)
- APU maintenance: $46–$62/hour
- Avionics/systems: $260–$320/hour (advanced avionics)
- Landing fees: $400–$800/landing
Jet Fuel & Operating Economics
Fuel Cost by Hours
| Annual Hours | Gallons Jet-A | Cost @ $5.50/gal | $/Hour |
|---|---|---|---|
| 50 | 22,000 | $121,000 | $2,420 |
| 100 | 44,000 | $242,000 | $2,420 |
| 150 | 66,000 | $363,000 | $2,420 |
| 200 | 88,000 | $484,000 | $2,420 |
Maintenance & Engine Reserves
Rolls-Royce BR725 Engines
- BR725: 5,000 hours TBO (premium ultra-long-range engines)
- Overhaul cost: $190,000–$230,000 per engine
- Combined reserve: $420,000 ÷ 5,000 = $84/hour
- Reliability: Excellent track record in ultra-long-range operations
Ultra-Long-Range Premium Jet Maintenance
- APU maintenance: $26,000–$36,000/year
- Air conditioning/environmental: $22,000–$30,000/year
- Avionics software updates: $20,000–$28,000/year
- Pressurization and cabin systems: $20,000–$28,000/year
- Budget: $330–$380/hour for all maintenance
Insurance & Storage
Ultra-Long-Range Premium Jet Insurance
- $20,000,000 hull, 500+ hours, international: $44,000–$50,000/year
- $24,000,000 hull, 100–250 hours: $54,000–$62,000/year
- High-value international: +120–180% premium
Storage Costs
| Option | Monthly | Annual |
|---|---|---|
| Premium Ultra-Long-Range Hangar | $3,700–$4,500 | $44,400–$54,000 |
| Tie-Down (Not recommended) | $2,000–$3,000 | $24,000–$36,000 |
Annual Ownership Scenarios
Operating Cost (Not Financed)
| Hours/Year | Fixed | Variable | Total | $/Hour |
|---|---|---|---|---|
| 50 | $310,000 | $242,000 | $552,000 | $11,040 |
| 100 | $310,000 | $484,000 | $794,000 | $7,940 |
| 200 | $310,000 | $968,000 | $1,278,000 | $6,390 |
Total Cost of Ownership (With Financing)
Assume $21,000,000 Gulfstream G550, 6.5% APR, 10 years = $3,720,000/year debt service.
| Hours/Year | Operating | Finance | Total | $/Hour |
|---|---|---|---|---|
| 100 | $794,000 | $3,720,000 | $4,514,000 | $45,140 |
| 200 | $1,278,000 | $3,720,000 | $4,998,000 | $24,990 |
Financing the Gulfstream G550
- Purchase price: $15,000,000–$26,000,000 (depends on year, avionics, hours)
- Down payment: 15–20%
- Loan amount: $13,000,000–$22,000,000
- Term: 10–15 years
- APR: 5.75–7.0% (2025)
- Monthly payment: $250,000–$440,000
Lender Requirements: 650+ credit, commercial/ATP rated, $6,000,000+ annual income, comprehensive business plan, hull insurance $20M+. Lenders like JakenAviation specialize in ultra-premium jet financing for global corporations.
Gulfstream G550 vs. Competitors
- vs. Bombardier Global 5000: G550 faster speed; Global 5000 slightly larger cabin
- vs. Airbus ACJ319: ACJ much larger; G550 mid-size ultra-luxury
- vs. Cessna Citation X: Both ultra-long-range; G550 larger cabin
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Sources: Gulfstream Aircraft Specs | AOPA Owner Reports | FAA TCDS