The Economics of Private Jets

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Animation by Josh Sherrington
Sound by Graham Haerther (www.Haerther.net)
Thumbnail by Simon Buckmaster
Special thanks to Patreon supporters Adam Chelminski, Arkadiy Kulev, Charles Zilinski, Chris Allen, Connor J Smith, Daddy Donald, Etienne Dechamps, Eyal Matsliah, Hank Green, John & Becki Johnston, Kyle, MyNameIsKir, Plinio Correa, Qui Le, Remi_Scarlet, Tom Dooner, Tyler Hamm, and Vaughn Mudrick
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

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      matt jakobmatt jakob2 หลายเดือนก่อน
    • @Tiogshi Laj Right? I miss the old voice. This sounds like he's talking through a thick blanket.

      FerdinandFerdinand4 หลายเดือนก่อน
    • Hi Wendover!! I want to request a video about how airline alliances work. (Star Alliance, SkyTeam and Oneworld)

      Kristian CanoyKristian Canoy4 หลายเดือนก่อน
    • 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.

      Wubbalubba dubdubWubbalubba dubdub4 หลายเดือนก่อน
    • 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.

      Scooters VideosScooters Videos4 หลายเดือนก่อน
  • EPSTEIN HAD A PRIVATE JET AND DIDNT KILL HIMSELF

    Ruby HoneyRuby Honey9 ชั่วโมงที่ผ่านมา
  • 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."

    jec1nyjec1ny6 วันที่ผ่านมา
  • 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....

    Joshua PatrickJoshua Patrick7 วันที่ผ่านมา
  • Is the private jet taking off and landing in Walmart parking lots? I guess Walmart bought the Gulf-Harrier models.

    ThatGuyThatDoesStuffThatGuyThatDoesStuff8 วันที่ผ่านมา
  • Damn $100k a year for a manager at Walmart.

    John SmithJohn Smith8 วันที่ผ่านมา
  • 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.

    Russ Nurse2BRuss Nurse2B13 วันที่ผ่านมา
  • 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...

    Satwik VSatwik V14 วันที่ผ่านมา
  • 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.

    Jim DicksonJim Dickson15 วันที่ผ่านมา
  • 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"!!!!!!

    goodguygtogoodguygto16 วันที่ผ่านมา
  • Thank you for being the first person alive to pronounce Spokane correctly

    Wadert3Wadert317 วันที่ผ่านมา
  • Private jets are not "horrendous" for the environment.

    AvidcompAvidcomp18 วันที่ผ่านมา
  • not having to come in contact with the unwashed peasants is priceless for the greedy scumbag ceo's

    no peno pe19 วันที่ผ่านมา
  • What about if I just want one🤔 I mean I really really really really want a Gulfstream... 🤷‍♂️

    KurJan&UrbanoKurJan&Urbano19 วันที่ผ่านมา
  • 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.

    Mike willMike will19 วันที่ผ่านมา
  • lol jews.

    Neil ZutshiNeil Zutshi19 วันที่ผ่านมา
  • 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.

    EricEric19 วันที่ผ่านมา
  • 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.

    Charles EinarsonCharles Einarson19 วันที่ผ่านมา
  • Makes me not want to work as hard for Walmart because I don't get a jet to work

    washingtonstromtrooperwashingtonstromtrooper20 วันที่ผ่านมา
  • 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)

    Hitesh LimbaniHitesh Limbani21 วันที่ผ่านมา
  • 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.

    jay 3253jay 325322 วันที่ผ่านมา
  • nah your figuration is not that persuade. CEO doesn’t work that much. and they work through phone or meeting or doing nothing.

    SK JungSK Jung25 วันที่ผ่านมา
  • 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.

    Rich RRich R25 วันที่ผ่านมา
  • Goals

    Chawn KawChawn Kaw27 วันที่ผ่านมา
  • 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!!!!!

    Gerald Price, CREATOR, OWNER, AND OPERATORGerald Price, CREATOR, OWNER, AND OPERATOR27 วันที่ผ่านมา
  • 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.

    Gregarious SolitudinistGregarious Solitudinist27 วันที่ผ่านมา
  • 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!

    BobBob29 วันที่ผ่านมา
  • well i was with him up until he started the global warming shit.

    raykirkland555raykirkland555หลายเดือนก่อน
  • 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.

    RichardRichardหลายเดือนก่อน
  • 9:00 is that Matt Guthmiller?

    theboredbrowsertheboredbrowserหลายเดือนก่อน
  • 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!

    James MatthewsJames Matthewsหลายเดือนก่อน
  • 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.

    Ryan McGowanRyan McGowanหลายเดือนก่อน
  • 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.

    Mark SeifriedMark Seifriedหลายเดือนก่อน
  • 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?

    Cavaleer MountaineerCavaleer Mountaineerหลายเดือนก่อน
  • 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.

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

    SuperVt100SuperVt100หลายเดือนก่อน
  • Great video. Awesome voice

    Anas IqbalAnas Iqbalหลายเดือนก่อน
  • 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.

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

    Das WarsDas Warsหลายเดือนก่อน
  • 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

    LiamLiamหลายเดือนก่อน
  • 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).

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

    lulu minklulu minkหลายเดือนก่อน
    • 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

      sherpaderp dingosherpaderp dingoหลายเดือนก่อน
  • just got a model of Lear 90

    Chuck TomneyChuck Tomneyหลายเดือนก่อน
  • Amazing explanation on how everything works!

    Stella of the LakeStella of the Lakeหลายเดือนก่อน
  • It's too bad Walmart don't value their frontline staff's time as much.

    B LB Lหลายเดือนก่อน
  • 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

    heavyduty187heavyduty187หลายเดือนก่อน
  • 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

    BritAmerica BallBritAmerica Ballหลายเดือนก่อน
  • The only thing I learned is that Walmart pays their management too much.

    Raymond LiconRaymond Liconหลายเดือนก่อน
  • 1:36 A Gulfstream can fly a little bit faster than commercial...

    Gamerboy360Gamerboy360หลายเดือนก่อน
  • Time to do one on Hollywood stars and all of their privates jets.... while they all complain about "global warming."

    D KahnD Kahnหลายเดือนก่อน
  • 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?

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

    T1OracleT1Oracleหลายเดือนก่อน
  • ....also, it's an asset they can depreciate and take off their taxes.

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

      Nelson NeubergerNelson Neubergerหลายเดือนก่อน
  • 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...

    Jon AllenJon Allenหลายเดือนก่อน
  • 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.

    Ayden LallyAyden Lallyหลายเดือนก่อน
  • 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 ;)

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

    MahjMahjหลายเดือนก่อน
  • They are just really convenient.

    I Created An Account For ThisI Created An Account For Thisหลายเดือนก่อน
  • Guess what Dj khalid works Walmart then 🤔

    Mo biidoMo biidoหลายเดือนก่อน
  • 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.

    TMoD7007TMoD7007หลายเดือนก่อน
  • 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?

    dayledayleหลายเดือนก่อน
  • another reason guillotines needs to be brought into fashion

    ComradeWinstonComradeWinstonหลายเดือนก่อน
  • I never would have guessed they wee so expensive.

    sarcasmo57sarcasmo57หลายเดือนก่อน
  • Begs the question of why they don't move their office

    yaiirableyaiirableหลายเดือนก่อน
  • CEO is useless

    pendu jattpendu jattหลายเดือนก่อน
  • WOW which airport has the cool lights @ 1.42?

    David SebastianelliDavid Sebastianelliหลายเดือนก่อน
  • Corporate is just an illusion 👊🏿👊🏿

    Daniel BonnerDaniel Bonnerหลายเดือนก่อน
  • Great video until the class warfare carbon foot print nonsense started.

    long businesslong businessหลายเดือนก่อน
  • 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.

    mike forcemike forceหลายเดือนก่อน
  • Tax them down!

    SuperMarwaySuperMarwayหลายเดือนก่อน
The Economics of Private Jets