The Economics of Private Jets

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  • Published on Jul 16, 2019
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    Animation by Josh Sherrington
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    Thumbnail by Simon Buckmaster
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    Music by epidemicsound.com
    Select footage courtesy the AP Archive
    References:
    [1] www.census.gov/quickfacts/fact/table/US/SEX255218; newflightcharters.com/private_jet_charter_flight_pricing.htm; www.charterhub.com/listings/aircraft/for-charter/list/?Mdltxt=G550&Manu=GULFSTREAM&mdlx=exact; www.privatefly.com/us/private-jets/longrange-jet-hire/Gulfstream-G550
    [2] hbr.org/2018/07/the-leaders-calendar#what-do-ceos-actually-do
    [3] www.epi.org/files/pdf/130354.pdf
    [4] www.bloomberg.com/opinion/articles/2017-10-31/in-defense-of-corporate-aircraft-no-really
    [5] www.linkedin.com/pulse/tesco-wal-mart-private-jets-fabrizio-poli/
    [6] uk.flightaware.com/resources/registration/N455DG
    [7] www.corporatejetsolutions.com/PDF/Aircraft%20Comparisons/Citation%20VII%20vs.%20Hawker%20700%20vs.%20Lear%2045.pdf; awin.aviationweek.com/portals/awin/pdfs/BCAOpPlanningGuide/2012_Production.pdf; www.aopa.org/news-and-media/all-news/2015/november/16/hourly-operating-costs-of-45-jets-compared
    [8] www.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] www.stratosjets.com/private-jets/bombardier-7500/; www.trilogyaviationgroup.com/jet/Global-7500; www.privatefly.com/us/private-jets/longrange-jet-hire/bombardier-global-7500
    [11] www.economist.com/business/2012/04/14/winging-it
    [12] www.eia.gov/environment/emissions/co2_vol_mass.php; data.worldbank.org/indicator/en.atm.co2e.pc
    [13] www.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 • 3 176

  • Wendover Productions
    Wendover Productions  3 months ago +894

    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: ExtremitiesPodcast.com

    • matt jakob
      matt jakob Month ago

      Good tips. Very enlighteneing. However as we move closer to vacation season, i would also recommend webghost for all types of airline fare hacks and accomodation. Travel round the world through any class section for almost half the price of the initial price. I experienced this topnotch services when i booked First Class tickets and hotel reservations at cheaper rates when i travelled to Auckland,New Zealand in July. Webghost saved me about $2000 off my expenses. They also save you lesser time and stress which is why i can recommend to anyone.. Reach webghost33cyberservices,.com or text 1 470 231 5053 Thank Me Later.

    • Ferdinand
      Ferdinand 3 months ago

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

    • Kristian Canoy
      Kristian Canoy 3 months ago

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

    • Wubbalubba dubdub
      Wubbalubba dubdub 3 months ago

      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 3 months ago

      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.

  • raykirkland555
    raykirkland555 Day ago

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

  • Richard
    Richard Day ago

    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 Day ago +1

    9:00 is that Matt Guthmiller?

  • George
    George Day ago +1

    You forgot the most important savings companies have by flying private. Taxes! The amount of write offs are more then worth it for companies to fly private. These are write offs you can’t have if you fly commercial.

  • James Matthews
    James Matthews Day ago

    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 2 days ago +1

    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 2 days ago +1

    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

    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 3 days ago

    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 7 days ago

    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 7 days ago

    Great video. Awesome voice

  • J B Campbell
    J B Campbell 7 days ago

    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 8 days ago +1

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

  • Liam
    Liam 9 days ago +1

    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 9 days ago +1

    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 12 days ago +5

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

    • sherpaderp dingo
      sherpaderp dingo 4 days ago +1

      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 14 days ago

    just got a model of Lear 90

  • Stella of the Lake
    Stella of the Lake 14 days ago

    Amazing explanation on how everything works!

  • B L
    B L 14 days ago

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

  • heavyduty187
    heavyduty187 15 days ago

    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 15 days ago

    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

  • Raymond Licon
    Raymond Licon 16 days ago

    The only thing I learned is that Walmart pays their management too much.

  • Gamerboy360
    Gamerboy360 16 days ago

    1:36 A Gulfstream can fly a little bit faster than commercial...

  • D Kahn
    D Kahn 16 days ago

    Time to do one on Hollywood stars and all of their privates jets.... while they all complain about "global warming."

  • Randy Rodabaugh
    Randy Rodabaugh 18 days ago

    They aren't just saving time and/or money. By being back in the office sooner, it means that they need fewer executives for the same amount of territory. It also means that projects and other decisions aren't delayed by someones travel time. How can you put a price on that?

  • T1Oracle
    T1Oracle 18 days ago

    Have these people not heard of Skype? Have an employee walk around with a phone and show them everything.

  • Matt Wallace
    Matt Wallace 19 days ago +1

    ....also, it's an asset they can depreciate and take off their taxes.

    • Nelson Neuberger
      Nelson Neuberger 15 days ago +1

      Yes I can’t believe Wendover missed this. You can’t write off flight tickets but you can write off a jets depreciation.

  • Jon Allen
    Jon Allen 19 days ago

    Companies that own jets save huge on charter costs. It costs at the absolute most, a little under $6k an hour to run a business jet if it is owned. It is a business expense and therefore not taxed money. When talking about money that they can spend instead of paying taxes, it is almost always worth the expense. And then the time saved as well as ability to still be in conference calls, video conferences, etc...

  • Ayden Lally
    Ayden Lally 19 days ago

    6:41 a big corporation like Walmart would never fly 19 of there top executives in one private jet lol. Common now, u should know that.

  • Michael Stark Investing

    This video got a lot of assumptions very wrong.
    1. CEOs work MUCH MORE than 2700h/year. Probably 2X
    2. Cost savings are not 55k/3 hours, but (55k-10k)/3hours (the alternative is 1st class, not walking for free, I assume)
    3. It is NOT CEOs who use private jets AT ALL. Rather, it's investors, entrepreneurs, and billionaires who ESSENTIALLY PAY FOR IT BY THEMSELVES anyway

    Picking Walmart is probably the WORST POSSIBLE outlier you could pick for "representing all private jet riders", due to it's special location it the outskirts and specialty needs ;)

  • Mahj
    Mahj 19 days ago

    1:30 only if the CEO is the only person at the company actually doing something. I reckon that's not the case.

  • I Created An Account For This

    They are just really convenient.

  • Mo biido
    Mo biido 20 days ago

    Guess what Dj khalid works Walmart then 🤔

  • TMoD7007
    TMoD7007 20 days ago

    You missed the probably most important thing: These jets are flying offices and provide confidential conference during flight.
    To a degree that even first class flights cannot deliver by far.

  • dayle
    dayle 21 day ago

    Surely one if the biggest advantages of it would be the massive tax write-offs the company can make with the travel being for business purposes?

  • ComradeWinston
    ComradeWinston 22 days ago

    another reason guillotines needs to be brought into fashion

  • sarcasmo57
    sarcasmo57 22 days ago

    I never would have guessed they wee so expensive.

  • yaiirable
    yaiirable 23 days ago

    Begs the question of why they don't move their office

  • pendu jatt
    pendu jatt 24 days ago

    CEO is useless

  • David Sebastianelli
    David Sebastianelli 26 days ago

    WOW which airport has the cool lights @ 1.42?

  • Daniel Bonner
    Daniel Bonner 26 days ago

    Corporate is just an illusion 👊🏿👊🏿

  • long business
    long business 26 days ago

    Great video until the class warfare carbon foot print nonsense started.

  • mike force
    mike force 27 days ago +1

    private jets do not make sense in the modern world. what AMAZING help to the shareholder will occur in the magical 2hr store visit that can't be done with a livestream? or a moving robot with camera and interaction method, so they can go wherever they want in the building? it is no different than explaining why some people "deserve" a $400 steak...it is just the 1% expressing that they are special, and everyone else is dirt. oh, except the few people who find out secrets about company or "executives". they get a nice ride too.

  • SuperMarway
    SuperMarway 27 days ago

    Tax them down!

  • marco brenni
    marco brenni 27 days ago

    Boring enough !

  • Ryan
    Ryan 29 days ago

    I just found out today that my university owns a private jet. No wonder tuition is expensive.

  • Geo Jeff
    Geo Jeff 29 days ago

    Great video right up to the global warming nonsense. Al Gore uses one so I’m sure it’s just fine.

  • AlissonSv2
    AlissonSv2 29 days ago

    This ridiculous amounts of money make me feel sick.

    • Hephaestus
      Hephaestus 26 days ago

      Life goals! Of course, now everyone thinks they deserve the same money for a fraction of the intelligence/work.

    • ForOne814
      ForOne814 28 days ago

      Jealousy isn't sickness.

  • matt jakob
    matt jakob Month ago +5

    Good tips. Very enlighteneing. However as we move closer to vacation season, i would also recommend webghost for all types of airline fare hacks and accomodation. Travel round the world through any class section for almost half the price of the initial price. I experienced this topnotch services when i booked First Class tickets and hotel reservations at cheaper rates when i travelled to Auckland,New Zealand in July. Webghost saved me about $2000 off my expenses. They also save you lesser time and stress which is why i can recommend to anyone.. Reach webghost33cyberservices,.com or text 1 470 231 5053 Thank Me Later.

    • Martha D.moreno
      Martha D.moreno Month ago

      Sounds awesome. I could use some of this freebies. I wanna go to Greece on a round trip.

  • TheMightyWookie351c

    Holy Hell!!! This is a scam teaching you how to solve word problems... AAHHH!!!!!! Ruuunnn!!!! 😆😬

  • Hadwin Ying
    Hadwin Ying Month ago +2

    6:33 according to google, lax has direct flight to mnl

  • Oliver Revillo
    Oliver Revillo Month ago

    6:30 First of all there are daily flights from LAX to Manila through Phillipenes Airlines, you don't need to stop at Hong Kong

  • Cedric Ye
    Cedric Ye Month ago +2

    5:30 "Day trip to the northEAST"




    Northwest and Midwest: *"Are we a joke to you?"*

  • sugarsaint
    sugarsaint Month ago +2

    Walmart value their vice presidents time but my question is how much "value" was achieved in a fooking store visit 😵?

  • Alan
    Alan Month ago

    Don't the bull crap that are airports from airport security

  • Robin Milan
    Robin Milan Month ago

    Great video. I work in this space and corporate aviation is often misunderstood. Clearly there is a climate challenge with all aviation but many people don’t appreciate the issues raised here. Good job.

  • dan foff
    dan foff Month ago

    But ceo's and vp's aren't paid hourly so your logic is flawed the only inconvenience is his/her time which is makes no difference since his or her salary is already negotiated and doesn't change. The only savings is hotel food but not enough to justify the high costs of private jets.

  • Fishing with Tyler
    Fishing with Tyler Month ago

    My dad flys a global 750 he’s one of the top captains for netjets

  • TubeBrasil
    TubeBrasil Month ago

    It's just theft from the stockholders. The VP will not solve anything in a store in two hours. This is BS.
    Also, it is a status symbol, and not every traveler is a CEO.