The Economics of Private Jets

The Economics of Private Jets

Watch over 2,400 documentaries for free for 31-days by signing up at http://CuriosityStream.com/Wendover and using the code, “Wendover”

Listen to Extremities at http://ExtremitiesPodcast.com

Subscribe to Half as Interesting (The other channel from Wendover Productions): https://www.youtube.com/halfasinteresting

Get the Wendover Productions t-shirt: https://standard.tv/collections/wendover-productions/products/wendover-productions-shirt

Support Wendover Productions on Patreon: https://www.patreon.com/wendoverproductions

Youtube: http://www.YouTube.com/WendoverProductions
Instagram: http://Instagram.com/sam.from.wendover
Twitter: http://www.Twitter.com/WendoverPro
Sponsorship Enquiries: wendover@standard.tv
Other emails: sam@wendover.productions
Reddit: http://Reddit.com/r/WendoverProductions

Animation by Josh Sherrington
Sound by Graham Haerther (http://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 http://epidemicsound.com
Select footage courtesy the AP Archive

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

You may also like...

52 Responses

  1. John Kilpatrick says:

    Where can I find London to Dubai, first class (not business class) for $2750? ($55k/20).

  2. Andy Cox says:

    Private jets are also often justified using a reason that can’t fully be quantified – productivity. In most first- or business-class cabins, to say nothing of economy class, it’s not possible to engage with others flying alongside you and have business discussions while in flight. However, this is exactly what private jets are designed for in many cases. Connectivity options, like phones and internet, can be made available on every flight instead of hoping you fly a carrier with Wi-Fi. This particular reason is why most national leaders have their own private jets – they need to be able to get down to business and talk with advisors 24/7, and you just can’t do that flying commercially. Many companies have grown so large that the stresses and responsibilities on their leaders are similar enough to make private jets worth it for the same reasons.

    • Gabriel Archibald says:

      That’s a fair point. I don’t see many company executives flying together in first class or business class even. The process of security and the general public is still there, which is unhelpful to facilitste intelligent and meaningful discussion. Having been on a few (stationary, unfortunately) private jets, you can instantly recognize that flying on one would be a truly incredible experience.

    • Andy Cockrum says:

      Andy Cox I think we had similar name struggles growing up bro

    • Seth Samuel says:

      I think you have more valid point than the video itself.

    • TheHvk says:

      Stress? LOL. The whole reason you rise to the top is to make things easier.

    • sandiegofun1 says:

      This is so true. I have lost so many hours in the air because of WiFi that doesn’t work, and it’s killed several deals.

  3. YouTube Addicted says:

    Sam is secretly married to his gf Boeing. But he can’t forget his ex Airbus.

  4. four zero zero romeo romeo says:

    Wallmart wouldn’t have to charter for long range. They have a Gulfstream G650ER. N762MS

    • Eric Tremblay says:

      @shotelco
      Indeed, Dassault has about an 8% market share, so there must be some of their jets around 🙂

      Gulfstream, Bombardier and Textron are way ahead of them in terms of $ sales.

    • shotelco says:

      @Eric Tremblay As I recall, there is a grand total of about 20,000 business jets flying worldwide. Only 650 new business jets are sold each year. Dassault, makes their real $ profits by selling Birds of Prey (War planes) and other military related products. Their annual revenue is $40B USD.

      Bombardier makes it’s real $ profits by selling Trains and other non-aviation related transportation technologies. Bombardier annual revenue is about 16.5B.

      For perspective, Dassault generates almost twice as much revenue per year as All revenue from All new business jets sold per year. The BizJet industry is seductive, but fairly meaningless in the grand scheme of things.

    • Eric Tremblay says:

      @shotelco
      All you say is correct. Except Business jets are probably the best profit center of those guys. (Versus trains for BBD or fighter jets for Dassault, by example)

    • hogsneverwinbiggames says:

      @Joey Drexler They use the Rogers airport

    • four zero zero romeo romeo says:

      @hogsneverwinbiggames 5900 feet at MTOW. not unusually long.

  5. MWB Gaming says:

    stock footage of airplanes: **exists**
    wendover: IL TAKE YOUR ENTIRE STOCK!!!

  6. Sammy Woo says:

    My car just sits there 22 hours everyday depreciating, but is worth every penny for my sanity! 😀

  7. Wendover Productions says:

    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

    • Jonathan Gallardo says:

      Wendover Productions Hey, congrats on getting trending.

      I envy the people who can afford that.

    • Ictpilot Ictpilot says:

      @Noobsaibot21 No. They are worked into the IFR system like everyone else.

    • Ictpilot Ictpilot says:

      Just another hater channel. You forget to mention that these people are working while on board. You can’t have a meeting in business class and discuss sensitive company business. Also alot of people that are flown are mid level managers and technicians. You should contact NBAA and get some research and data from them.

    • Ty Smukowski says:

      Dude Extremities is awesome, I’m excited to listen to the final episode about Pitcairn!

  8. IsraeliPilot says:

    Since Walmart pays for the flight, the salary is not relevant, it’s the value of getting done much quicker. What they pay him doesnt change, their effective work changes as they become a much more efficient employee.

  9. Rasputin says:

    Roses are red
    The sky is blue
    This man loves planes
    And you do too

  10. Max Power says:

    You kinda didnt have good reasoning. Your cannot value the cost of the private jet by comparing it to salaries. A workers salary is not equivalent to how much they’re worth to the company. In fact it’s far less.

  11. Bilerman says:

    Is it just me or the voice in this video sounds lower than the average sam voice?

  12. Dylan Bravo says:

    Love your videos! Especially on planes! Would it be possible to do a video on explaining how regional airlines work (such as Skywest, Expressjet, and Compass airlines flying for Delta connection, American eagle, and United express)? I think it would be a great video and clarify a confusing topic

  13. John Smith says:

    You’re assuming an employee’s value to the company equals their salary. Ideally the former is a multiple of the latter.

  14. Joe MacLeod-Iredale says:

    The economics stack up a little differently if you assume that the CEO will rarely be traveling alone…

  15. Daniel Torres says:

    Basically:
    Normal airliner = Bus
    Private jet = Car

  16. TBRFLUFFY GAMING says:

    Wow I never knew Spokane was in the Northeast. Very insightful Sam learned a lot.

    5:30 hehe

  17. sound insight says:

    This video was made possible by Learjet, get 10% off your Lear 60 XR with the link in the description

  18. Napoleon I Bonaparte says:

    How is owning a private jet using donor money from a church making sense and only using it for family vacation of the Minister/pastor?

  19. Munden says:

    Salary paid is not really comparable to the value they provide to the business.

  20. fruitfly77 says:

    Imagine spending all that money to just go to Walmart! Jeez.

Leave a Reply

Your email address will not be published. Required fields are marked *