The Economics of Private Jets

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  • Published: 16 July 2019
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    Select footage courtesy the AP Archive

    References:
    [1] census.gov/quickfacts/fact/table/US/SEX255218; newflightcharters.com/private_jet_charter_flight_pricing.htm; charterhub.com/listings/aircraft/for-charter/list/?Mdltxt=G550&Manu=GULFSTREAM&mdlx=exact; privatefly.com/us/private-jets/longrange-jet-hire/Gulfstream-G550
    [2] hbr.org/2018/07/the-leaders-calendar#what-do-ceos-actually-do
    [3] epi.org/files/pdf/130354.pdf
    [4] bloomberg.com/opinion/articles/2017-10-31/in-defense-of-corporate-aircraft-no-really
    [5] linkedin.com/pulse/tesco-wal-mart-private-jets-fabrizio-poli/
    [6] uk.flightaware.com/resources/registration/N455DG
    [7] corporatejetsolutions.com/PDF/Aircraft%20Comparisons/Citation%20VII%20vs.%20Hawker%20700%20vs.%20Lear%2045.pdf; awin.aviationweek.com/portals/awin/pdfs/BCAOpPlanningGuide/2012_Production.pdf; aopa.org/news-and-media/all-news/2015/november/16/hourly-operating-costs-of-45-jets-compared
    [8] symmetry.com/resources/payroll-news/2017/11/13/how-many-working-days-are-in-a-year
    [9] corporate.walmart.com/media-library/document/2019-environmental-social-governance-report/_proxyDocument?id=0000016a-9485-d766-abfb-fd8d84300000&mod=article_inline
    [10] stratosjets.com/private-jets/bombardier-7500/; trilogyaviationgroup.com/jet/Global-7500; privatefly.com/us/private-jets/longrange-jet-hire/bombardier-global-7500
    [11] economist.com/business/2012/04/14/winging-it
    [12] eia.gov/environment/emissions/co2_vol_mass.php; data.worldbank.org/indicator/en.atm.co2e.pc
    [13] economist.com/business/2017/02/16/why-bosses-are-flying-more-for-play-not-work
    [14] papers.ssrn.com/sol3/papers.cfm?abstract_id=529822

Comments • 3 189

  • Wendover Productions
    Wendover Productions   5 months back

    If you missed all the different announcements, I started a new podcast called Extremities about a month ago. It's all about how and why the world's most isolated human settlements exist, with the first season being on Pitcairn--the 50 person British territory in the South Pacific.
    You can listen to the podcast here: http://ExtremitiesPodcast.com

    • matt jakob
      matt jakob  2 months back

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    • Ferdinand
      Ferdinand  4 months back

      @Tiogshi Laj 
      Right? I miss the old voice. This sounds like he's talking through a thick blanket.

    • Kristian Canoy
      Kristian Canoy  5 months back

      Hi Wendover!! I want to request a video about how airline alliances work. (Star Alliance, SkyTeam and Oneworld)

    • Wubbalubba dubdub
      Wubbalubba dubdub  5 months back

      you could also make a video/podcast about tahiti. our company is shipping a package there from europe for 7€ with dhl, even though it's on the other side of the world from us. the french goverment seems to subsidise shipping cost to french polynesia.

    • Scooters Videos
      Scooters Videos  5 months back

      what this proves is that the rich are @$$raping us and that not paying at least $15 an hour is an outrage deserving of tar and feathers.

  • Larry Smith
    Larry Smith  2 days back

    Anybody who thinks private jets are opulent has never flown one. Or, he's a midget.

    • Ruby Honey
      Ruby Honey  2 days back

      EPSTEIN HAD A PRIVATE JET
      AND DIDNT KILL HIMSELF

      • jec1ny
        jec1ny  1 weeks back

        Warren Buffet, who owns NetJets, a private plane charter service, always decried owning these kinds of planes as crazy. He said that even with top business executives, for the number of times in a year you would have a legitimate need to fly private, you are almost always better off chartering. A couple of years ago though, he bought a Bombardier Challenger 600. With a certain amount of guilt, he named it "The Indefensible."

        • Joshua Patrick
          Joshua Patrick  1 weeks back

          Nice to know Walmart doesn’t want its executives to spend time away from home for one night on their 300-500k a year salary while it doesn’t seem to be willing to provide its rank employees a living wage....

          • E2
            E2  19 hours back

            True

        • ThatGuyThatDoesStuff
          ThatGuyThatDoesStuff  2 weeks back

          Is the private jet taking off and landing in Walmart parking lots? I guess Walmart bought the Gulf-Harrier models.

          • John Smith
            John Smith  2 weeks back

            Damn $100k a year for a manager at Walmart.

            • Russ Nurse2B
              Russ Nurse2B  2 weeks back

              In my opinion Wal-Mart ONLY values the time of its executives. Example: They gave the average workers a raise and then turned around and cut their hours according to what I saw on the news.

              • Satwik V
                Satwik V  2 weeks back

                Whoever engineers and sells an electric private jet that has a significant decrease in environmental damage is going to be a very rich man or woman...

                • Jim Dickson
                  Jim Dickson  2 weeks back

                  its far more efficient flying point to point in the US than catching connecting flights... you can do multiple meetings across the country in a day.

                  • goodguygto
                    goodguygto  3 weeks back

                    Yeah!!, Walmart is good with money?, !!BEING STINGY!!, ripping off customers!!! Walmart still owe me $20!!!, their self check-out!!, took the money out of my debit card!!! They should be called "Asshole-Mart"!!!!!!

                    • Wadert3
                      Wadert3  3 weeks back

                      Thank you for being the first person alive to pronounce Spokane correctly

                      • Avidcomp
                        Avidcomp  3 weeks back

                        Private jets are not "horrendous" for the environment.

                        • no pe
                          no pe  3 weeks back

                          not having to come in contact with the unwashed peasants is priceless for the greedy scumbag ceo's

                          • KurJan&Urbano
                            KurJan&Urbano  3 weeks back

                            What about if I just want one🤔
                            I mean I really really really really want a Gulfstream...
                            🤷‍♂️

                            • Mike will
                              Mike will  3 weeks back

                              This is why I bought a Cessna CJ 4, that I can fly myself. I don't need to waste time allowing TSA to fell my Ass and look at my junk in an X ray, I can leave in the morning, waving at the TSA employee in his truck, Surprise Employees when I show up and be home in time for dinner, plus being single, it's a guarantee panty drop.

                              • Neil Zutshi
                                Neil Zutshi  3 weeks back

                                lol jews.

                                • Eric
                                  Eric  3 weeks back

                                  I love videos made by people about corporate executive decisions who clearly have never walked a day in the life of a corporate executive. If you think jet travel is simply about "economics" then you have a LOT to learn. Earlier today, I spoke to a CEO who was waiting in the airport for his flight from Newark to San Francisco. He had already racked up over 500,000 miles for the year flying commercial. His company is a smaller one - not the kind that could afford a private jet. However, his travel is much like that of any other CEO... horrendous. There comes a point where logistics matter simply for sanity. Conveniences matter even if the economics don't make sense on a spreadsheet. This is the same reason why someone who commutes long hours in a car each year may opt for plusher leather seats, a stereo upgrade, and some additional bells and whistles in their car - they're spending an enormous amount of time in their car, and while a cheaper model would make more "economic sense," there's a quality of life issue at play.


                                  For folks who don't travel regularly for work, it often sounds luxurious. But if you climb the ladder far enough and find yourself in airports several times a week, it'll quickly go from luxurious to laborious. It's a perk to fly private, yes... but one that's partially designed to improve efficiency and partly designed to bring quality of life to people who are sacrificing a LOT of time away from home and family. If there's a way to have mom or dad home for more baseball games, plays, concerts, and birthday celebrations and less time away, then it's hard to put a price on it.


                                  The people who look with envy on the high pay of corporate executives, along with perks like private jet travel, are also the very same people who would never dream to sacrifice so much of their personal time - not here and there, for a month, a year, or two... but for decades building their career and climbing that corporate ladder. I'm not suggesting anyone should feel bad for an executive, nor am I suggesting anyone should badly for a guy working in the mail room. Each make their choices. Each lifestyle has its benefits and drawbacks. But far more folks in the mail room seem to forget that the high pay and perks at the executive level also means giving up a good deal of their social life, personal time, and work-life balance.

                                  • Charles Einarson
                                    Charles Einarson  3 weeks back

                                    Freedom of movement that isn’t tied to a hub and spoke transportation system allows for more efficiency and flexibility to land in.., let’s say Bakersfield California and not Las Angeles. Add the ability to go to literally any city in the nation and not be limited to roughly 400 Major airports that provide commercial service, private air travel makes much more sense. It is all about context.

                                    I am a low level government employee that has 13 states to manage. Private aircraft transportation makes more sense than commercial travel but because the perception is that the rich and privileged fly on private aircraft, I’m not allowed to use a charter plane or even one that I’m certified to fly myself. I am forced to fly commercially and am now restricted to their schedules and my trips are now cost prohibitive or take so much time, they won’t happen.

                                    Please tell me how to travel to Pasco, WA, Billings, MT, Rapid City, SD, Cheyenne, WY, Anchorace, AK, Nome, AK, Lincoln NE, and the other cities I need to get to that are either not served by Delta or American Airlines or are only serviced once a day.

                                    • washingtonstromtrooper
                                      washingtonstromtrooper  3 weeks back

                                      Makes me not want to work as hard for Walmart because I don't get a jet to work

                                      • Hitesh Limbani
                                        Hitesh Limbani  3 weeks back

                                        They also rent it like cabs.A private jet in need,after that a cab on call? So,own trips are always free(as cab compensate)

                                        • jay 3253
                                          jay 3253  4 weeks back

                                          Please do this same thing with Leanardo Decaprio and his carbon footprint vs taking a commercial flight. That hypocrite has 4 jets for just him.

                                          • SK Jung
                                            SK Jung  4 weeks back

                                            nah your figuration is not that persuade. CEO doesn’t work that much. and they work through phone or meeting or doing nothing.

                                            • Rich R
                                              Rich R  4 weeks back

                                              Did you take into account the time to and from the airport to the stores? My company has a jet and it is roughly 4.22$/mile and worth every penny. I am blessed to have been successful.

                                              • Chawn Kaw
                                                Chawn Kaw  4 weeks back

                                                Goals

                                                • Gerald Price, CREATOR, OWNER, AND OPERATOR

                                                  You are basing costs against salary instead of value add for deals made while on the trip..... which are in the 100’s of billions for WALMART THE WORLD’S LARGEST REVENUE EARNER ON PLANET EARTH PERIOD!!!!!

                                                  • Gregarious Solitudinist

                                                    a vice president of a company is useless and should remain at their desk. doing nothing is what they do best, let them do it all day in Bentonville.

                                                    • Bob
                                                      Bob  1 months back

                                                      You've neglected to mention that the CEO who makes thousands per hour can work in the back of the company jet or hold meetings while enroute. Or the fact that some wealthy individuals use the a/c for a mixture of business and pleasure... because they can! Not a bad video but somewhat short of facts!

                                                      • raykirkland555
                                                        raykirkland555  1 months back

                                                        well i was with him up until he started the global warming shit.

                                                        • Richard
                                                          Richard  1 months back

                                                          In the corporate world time is money, when opportunity knocks or need arrises the early bird gets the deal done, they can always get/earn more money but they can never get time back, Bill Lear understood this. Cost of operation-fuel, maintenance, ownership etc. is written off on taxes to a large extent the rest is just the cost of doing business or of being competitive.

                                                          • theboredbrowser
                                                            theboredbrowser  1 months back

                                                            9:00 is that Matt Guthmiller?

                                                            • James Matthews
                                                              James Matthews  1 months back

                                                              During his time at HSBC in the 90’s, a family friend was involved in evaluating the business case for the company’s corporate jet.
                                                              He told me that the most important factor in his evaluation was not the economics, but rather the effect on his career if he’d have nixed it!

                                                              • Ryan McGowan
                                                                Ryan McGowan  1 months back

                                                                It isn't about the wages of the executive. It's about the profit that the CEO brings to the company. If an executive is only manages increases of $1,000,000 a year, they'd probably be fired. If they can cause just one new store to open, it paid for all the trips that year. Also, you're not including the entire team of people that are on the private jet. There is likely 3 or 4 people on that plane, so divide all those numbers by at least 2.

                                                                • Mark Seifried
                                                                  Mark Seifried  1 months back

                                                                  Your comments and education for the masses is super and accurate. But; you had to ad the fact about toxic emissions. The US is the greatest country in the world. (It sounds like you want us to use horseback for travel because there will be much less pollution.) General aviation is absolutely necessary and worthwhile, even if you have a one person company. A small four passenger propeller driven aircraft can make that manager or salesman a super employee. Why would you do this? America is many times larger than it was 50 years ago and there are millions of more autos. Why not talk about these polluters in another video. Why not talk about people who want less pollution leaving their room a/c's on 68 and many of their lights and TV on for 12 hours while they are away for business all day. This wastes energy and pollutes the environment. Private aviation is a billion dollar industry in the US and around the world. So, you want to shut it down because the jet pollutes the environment. Are you going to talk about cows next? On another note; I wish that I was there when congress grilled the Detroit auto industry about their use of jets when they were asking for bailouts. I would have defended them with great conviction. (Did you know Janet Polosi has a Boeing 757 as her private jet? A much smaller jet would carry her to the west coast but this is what she uses. ) I am in the aviation idustry for 35 years.

                                                                  • Cavaleer Mountaineer
                                                                    Cavaleer Mountaineer  1 months back

                                                                    Nice, intelligent video until you just had to stick your foot in your mouth and talk about CARBON FOOTPRINT. Guess what? ALL THE JETS IN THE WORLD COMBINED OVER THEIR ENTIRE LIFESPAN DON'T LEAVE A "CARBON FOOTPRINT" AS BIG AS ONE SEASON OF LEAVES FALLING FROM TREES, YOU FUKIN IDIOT. How do normally intelligent people FALL FOR THIS STUPIDITY? All animals create more CO2 in one day than all jets and cars in a year. TF is wrong with yall?

                                                                    • James Godfrey
                                                                      James Godfrey  1 months back

                                                                      I used to work at walmart, a buddy (and 10 other employees) got fired for eating a 0.98$ taquito from the deli that was going to be thrown away. The execs flew in to Marquette Mi in their private jets to fire them. He had to write a cheque for .98$ or get charged with larceny.

                                                                      • SuperVt100
                                                                        SuperVt100  1 months back

                                                                        Think you nailed it with the first part of your comment. Having an executive back in the same day keep then from burnout.

                                                                        • Anas Iqbal
                                                                          Anas Iqbal  1 months back

                                                                          Great video. Awesome voice

                                                                          • J B Campbell
                                                                            J B Campbell  1 months back

                                                                            STHU about Carbon footprints. Idiots. Natural Gas pockets around the world spew Millions Of Times the Easter into the air naturally every day than humans do in a year. Great video until the environmental Religious bS’ers showed up.

                                                                            • Das Wars
                                                                              Das Wars  1 months back

                                                                              Talking 10 mins doubtful things, while 1 sentence in the comments explains it perfectly. That’s America! 😂😂😂

                                                                              • Liam
                                                                                Liam  1 months back

                                                                                As soon as this wendover cuck mentioned climate change I left this comment and never came back.. even if anyone replies I’ll never return

                                                                                • Kamil Grzeszczak
                                                                                  Kamil Grzeszczak  1 months back

                                                                                  Haven't these companies heard of Skype and other teleconference software?
                                                                                  It would save them even more time and milions of dollars (if we assume that time of management people is worth the same as their salary, which I doubt).

                                                                                  • lulu mink
                                                                                    lulu mink  1 months back

                                                                                    But why can't the TOP executives not simply do a video conference call for almost free??

                                                                                    • sherpaderp dingo
                                                                                      sherpaderp dingo  1 months back

                                                                                      I know a few mid level execs and they say the in person meetings are far more impactful and you get a better picture of what's going on (I.e a store manager will have a harder time hiding something from you if that's their prerogative

                                                                                  • Chuck Tomney
                                                                                    Chuck Tomney  2 months back

                                                                                    just got a model of Lear 90

                                                                                    • Stella of the Lake
                                                                                      Stella of the Lake  2 months back

                                                                                      Amazing explanation on how everything works!

                                                                                      • B L
                                                                                        B L  2 months back

                                                                                        It's too bad Walmart don't value their frontline staff's time as much.

                                                                                        • heavyduty187
                                                                                          heavyduty187  2 months back

                                                                                          What if I’m rich and just don’t wanna sit on a plane with a crying kid or stinky people? Maybe I just don’t wanna sit with poor people

                                                                                          • BritAmerica Ball
                                                                                            BritAmerica Ball  2 months back

                                                                                            Correction, a Bentonville to Manila can only have a stopover in LA or SFO and take a Philippine Airlines 777 or A350 down to Manila.

                                                                                            Which can only take at most, 20 hour trip plus time change