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 • 3 234

  • Wendover Productions
    Wendover Productions  6 months ago +938

    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.
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    • matt jakob
      matt jakob 3 months ago

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    • Ferdinand
      Ferdinand 5 months ago

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

    • Kristian Canoy
      Kristian Canoy 5 months ago

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

    • Wubbalubba dubdub
      Wubbalubba dubdub 5 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 6 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.

  • TheBeybladeSport

    Greta has committed suicide

  • J J
    J J 4 days ago

    We fly private prop planes, which have much different economics than jets, but with all of the benefits.

  • Canaan Xie
    Canaan Xie 4 days ago

    CEOs spend millions to fly to listen to or give those cliches speeches at a time when doctors are about to perform remote surgeries on humans.

  • Nkanyiso Maphanga
    Nkanyiso Maphanga 5 days ago

    Buying a private jet is much easier and make more financial sense than to pay the fat IRS bill that these corporations get changed. That's why Walmart is happy to buy so many of them.

  • Suuhls
    Suuhls 6 days ago +1

    And Americans be like "Why is climate change so bad???"

  • Nathan BB
    Nathan BB 9 days ago

    There's a lot of taxes deductions related to jets as well depending on the country its based on... would you rather buy a brand new jet or pay the exact same amount in taxes? This video is extremely superficial...

  • Music n Thingz
    Music n Thingz 9 days ago

    It dosent make sense that you're saying someone has to make x amount of dollars for it to be worth hiring.

  • JRBUISEXCAVATING
    JRBUISEXCAVATING 10 days ago +1

    Is the plane landing in the parking lot of these stores? What about travel time to and from the airport?

  • I.P. Knightly
    I.P. Knightly 10 days ago

    You somehow need to factor in the human suffering of a person in Manilla that has to meet up with a planeful of Walmart executives.

  • Voxal Gaming
    Voxal Gaming 11 days ago +1

    8:20 - View of my home country - Poland (Vistula estuary)

  • Amer Dodokh
    Amer Dodokh 12 days ago

    But that is a 4 sectors flight. Which means that the cockpit crew won’t be able to accomplish it as their duty time is 10:30 hours for that flight.

  • Jeff Williams
    Jeff Williams 12 days ago +1

    Jet costs for Walmart as a percentage of revenue is a rounding error....

  • Last train To Vegas
    Last train To Vegas 13 days ago

    Fuck the CEOs!!! All overpaid for nothing

  • John Kauffman
    John Kauffman 13 days ago +1

    06:00 - How often would 19 officers fly to Manila? 4 would be more realistic number for the denominator.
    And, WalMart would allow 19 officers to fly on one small jet?
    (same earlier with the example of 9 pax on a jet)

  • Khrashing Phantom
    Khrashing Phantom 14 days ago +1

    That American CEO pay breakdown was soul crushing.

  • Ty Wert
    Ty Wert 16 days ago

    Same big corporations pushing Greta thunberg feces, especially in an age they can do their meetings through digital means

  • Datmudkipify | Gaming
    Datmudkipify | Gaming 17 days ago

    Private jets... used by the people who tell us *cough* Trudeau *cough* we need to pay more taxes to save the environment from ourselves. How dare we drive cars!!!

  • The Llama Animations
    The Llama Animations 17 days ago +1

    I wish I had these documentary services, but I’m a frikin 12 year old with no money

  • Stefan Kristersson
    Stefan Kristersson 18 days ago +1

    If you send your gulfstream to pick up a potential customer or partner, that meeting is almost garanteed to end well for you. The jet can also be the reason for them wanting to meet you in the first place - who can say no to a private jet ride?

  • Youssef Selkani
    Youssef Selkani 20 days ago

    If you make $1M/year 50k for a flight is a lot

  • A Nii
    A Nii 21 day ago

    Are you the guy from info graphics??? 🤔

  • richard bearden
    richard bearden 22 days ago

    Walmart can just do virtual tours of their store. For all the expense for being Hands-On not much change takes place...

  • Sally Hillal
    Sally Hillal 24 days ago

    Drastically lower CEO pay and benes . They will work for less.

  • София Сойко
    София Сойко 25 days ago

    انا اعملي في محكومة دولية我工过几形事法院i work at the international court of justiceя работаб в международный суд оонyo trabajo en corte penal international

  • Tony Lam
    Tony Lam 25 days ago

    For your info, many esteemed scientists are telling use now , we need more co2 in the atmosphere. Plants grow better with that and that is what we eat. So maybe we should dump the jets and take steam locomotives (coal) around US everywhere and steam ships overseas.No matter how important a jet is to the bottom line, there will always be a small % of super rich who will use their jet to take their dog to the barber, and they could not care less about the critics.

  • Tom Hamrick
    Tom Hamrick 28 days ago

    You are correct if all you putting is only one exec on a plane. but if you have your two lead salesmen on the plane along with the exec and 2 or three execs from a company you are trying to cut a deal with that could be worth 2 or 3 billion over the next 10 years it is more than worth the cost.

  • AI Totem
    AI Totem 29 days ago

    Who was surprised Wal-Mart had their own fleet of jets? They are cost saving when it comes to their employees wages and customers prices ONLY.

  • goodafy
    goodafy Month ago

    For me
    There only one reason corporate bodies buy private jets is
    BECAUSE THEY CAN AFFORD IT.
    Every thing else are excuses.
    If they can't afford it, but Claim they need it, they still won't get it.
    I work in such corporate organisations, and with technologies like Skype, zoom, gotomeeting, WhatsApp etc.
    Corporate travels have been cut down to more than 90% of what it used to be, yet production and oversight have increased and money saved.
    Wendover and others that still justify corporate private jet travel are same people that use it and benefit from it, who would turn down a paid private jet travel.
    If it is about time saving, the bigger question is what was achieved with the saved time?
    It's like the days of Concorde supersonic travel, and its true claims of time saving but other economics of Airport wait times and cost of fuel and maintenance doesn't add up.
    Private jet travel is pure leisure, luxury, opulence and class that is more a distraction to serious business organisation than for productivity and efficiency.

  • Doggepp
    Doggepp Month ago

    Whilst you touched on this, I think the biggest reason anyone flies private jet, is that you can fly whenever you want. The plane waits for you, you dont wait for the plane. Sure, the money/time factor is huge also, but time is most often more important than money/cost for these people.

  • Larry Smith
    Larry Smith Month ago

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

  • Ruby Honey
    Ruby Honey Month ago

    EPSTEIN HAD A PRIVATE JET
    AND DIDNT KILL HIMSELF

  • jec1ny
    jec1ny Month ago

    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 Month ago +1

    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....

    • WK28
      WK28 Month ago +1

      True

  • ThatGuyThatDoesStuff

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

  • John Smith
    John Smith Month ago

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

  • Russ Nurse2B
    Russ Nurse2B Month ago +1

    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 Month ago +1

    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 Month ago

    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 Month ago

    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 Month ago

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

  • Avidcomp
    Avidcomp Month ago

    Private jets are not "horrendous" for the environment.

  • no pe
    no pe Month ago

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

  • KurJan&Urbano
    KurJan&Urbano Month ago

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

  • Mike will
    Mike will Month ago

    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 Month ago +1

    lol jews.

  • Eric
    Eric Month ago

    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 Month ago

    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

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

  • Hitesh Limbani
    Hitesh Limbani Month ago

    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 Month ago

    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 2 months ago

    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 2 months ago

    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 2 months ago

    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 2 months ago

    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 2 months ago

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

  • Richard
    Richard 2 months 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 2 months ago +1

    9:00 is that Matt Guthmiller?