The Economics of Private Jets

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  • Опубліковано 16 лип 2019
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    Animation by Josh Sherrington
    Sound by Graham Haerther (www.Haerther.net)
    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

КОМЕНТАРІ • 3 023

  • Wendover Productions
    Wendover Productions  Місяць тому +810

    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

    • Ferdinand
      Ferdinand 18 днів тому

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

    • Kristian Canoy
      Kristian Canoy 23 дні тому

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

    • Wubbalubba dubdub
      Wubbalubba dubdub 27 днів тому

      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 Місяць тому

      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.

    • Everything about Romania
      Everything about Romania Місяць тому

      When will we be getting the next episode?

  • Zero Dawn
    Zero Dawn 8 годин тому

    Carboon footprint = Marketing Scam.

  • Kyle Fitzpatrick
    Kyle Fitzpatrick 20 годин тому

    Amazing that the CEO makes 24 M a year when Walmarts employees are so poorly paid that the American tax payers spend over a billion on subsidies to support their employees

  • John Holton
    John Holton День тому

    I don't think huge corporations do the cost analysis of every hour of their CEO's day. It's kind of a results thing, would you want to live in a world where a CEO get micromanaged? No escape.

  • Sauga Verse
    Sauga Verse День тому

    I used to fly to work on a private jet every week.
    Leave on Monday morning, return home on Friday afternoon.
    However, our particular jet had 7 seats, and they were always full.
    Very rarely were there any executives on the flights, it was mostly for us average workers.
    The perks were great, you only had to arrive at the airport 5 minutes before the flight took off.
    No waiting, no security, no customs, free booze, this is how all flying should be.
    I'm sure it was expensive, but a private jet is a great way to travel.

  • esuus
    esuus День тому

    THANK YOU for pointing out the carbon footprint. Please keep it up!

  • lisa dodd
    lisa dodd 2 дні тому

    HE SAID SPOKANE RIGHT YOU GET A LIKE SIR

  • NKT authentic
    NKT authentic 2 дні тому

    Please also make.. The Economics of... 1. Star hotels 2. Cruise liners and 3. Oil refinary companies

  • Divide By Zero
    Divide By Zero 2 дні тому

    I don't think the Regional Vice President has visited my local Walmart recently...

  • Florin Pappa
    Florin Pappa 2 дні тому

    MiMiMi you can always make sense of flying private and you'd fly private too if you could 100%, anyways still a great video with great efforts and the 1.7mio views would have definitely paid for the next charter.

  • Edmond Dantes
    Edmond Dantes 2 дні тому

    Carbon Footprint...................Right.

  • GoneBamboo
    GoneBamboo 2 дні тому

    Great for flying young'ns to your private island

  • GoneBamboo
    GoneBamboo 2 дні тому +6

    Makes sense if your flying underage girls with heads of state

  • Moe Saad
    Moe Saad 3 дні тому

    Man I love all your airplane videos. Keep em coming and thank you!

  • Ocotillodavid
    Ocotillodavid 3 дні тому

    I worked for a company that sold private/corporate jets, and the fat cat bastards who ride in them have egos bigger than the price of their jets. They all need to humble up.

  • Zion Zawko
    Zion Zawko 3 дні тому

    Walmart doesn’t fly out of Bentonville (XNA) they fly out of Rogers at Walmart Aviation center and they only fly in to private airports near Walmart are not near big airport! If they are there is very few

  • benlovestorock
    benlovestorock 4 дні тому

    And the minimum wage in USA is ?

  • Pat W
    Pat W 4 дні тому +1

    Got to know for a good future

  • ali rk 12345
    ali rk 12345 4 дні тому

    It's not all about money it's about time in private jet tou can fly anytime you want

  • Kevin McGushion
    Kevin McGushion 4 дні тому

    Something you completely overlook is the value someones time is to the company. Let's say I have a VP making $500K per year who closes my deals and I have a factory that needs $100 million a year to stay operational. Anything after $100 million is profit so I want those deals closed as fast as possible and before anyone can compete with me. It is well worth the money to have the VP take a jet and close as many $2 to $5 million dollar deals as possible as quickly as possible, before the competition. the cost of a private jet is inconsequential. The bigger the company and the bigger the deal the more this makes sense. Jeff Bezos' time on a jet isn't equal to his hourly wage multiplied by air time. Jeff's time is worth the $2 billion deal he will close in that trip.

  • Joe Om
    Joe Om 4 дні тому

    One of the biggest clues here is that the rich do is the budgeting is down to the “t”. Avg people do not ever plan their lives in that way so its always chaotic shooting from the hip every time they make a decision and sometimes even taking days to make one.

  • Thomas Walton
    Thomas Walton 4 дні тому

    Ever heard of a Skype call? It's a great way to reduce having to travel....at all... you would only have to travel occasionally

  • ADITYA SANTHOSH
    ADITYA SANTHOSH 5 днів тому

    Y ur voice deep??

  • Felix Murithi
    Felix Murithi 5 днів тому

    The calculations on value for money are bullshit

  • Hoyt Benson
    Hoyt Benson 5 днів тому

    Hey Sam! I’ve got a vid request! Could you potentially do a video on airport emergency services? Great video, by the way!

  • yaimavol
    yaimavol 5 днів тому

    Show me a climate change conference where anybody flew commercial. When your last name is Clinton or Obama, you are beyond flying commercial, even if it's first class. Then again, both of them command their own "charitable foundations" that pay for it all.

  • seeyouspacecowboy14
    seeyouspacecowboy14 5 днів тому

    Maybe .... Just maybe you hire people and live in the city or near the city in which your company is located in
    I mean I understand working in nyc and take a train out to long island, but do you really need to fly hours to work daily .... just move to the state

  • Owen Bondar
    Owen Bondar 5 днів тому

    time is money

  • marymarluis
    marymarluis 5 днів тому

    Can you talk about economic disaster of AIRBUS A-380????

    • ZK-APA
      ZK-APA 5 днів тому

      marymarluis he’s made a similar video. Economies of big planes vs small planes

  • Inyalabudbud Punjabbidaliwad
    Inyalabudbud Punjabbidaliwad 5 днів тому

    Nothing the rich people do can be justified. Why fly First Class when the Economy folks get there at the exact same time? Why buy a Mercedes, when a Hyundai is acceptable? Why eat at the Four Seasons instead of Burger King? OWhen you are rich you become a superior creature who believes in his own hubris.

    • ZK-APA
      ZK-APA 5 днів тому

      Inyalabudbud Punjabbidaliwad I know it sounds dodgy, but simple answer is that the more you have, the more you’ll spend. And money is made for spending. Yes, investing and all is a better proposition, but if you are struggling in living your life, just so that you have more money, you are doing it wrong.
      People fly first class because they want to fly it and they can fly it. People buy Mercs because they want a merc and they can afford to buy it.

  • Mayank Bansal
    Mayank Bansal 6 днів тому

    Hey!! It's great to see your video is working well.
    Get it better by adding closed captions in English.
    Contact me for the service via email on [email protected]
    Thanks. ALL THE BEST. Keep Growing.

  • A-Bloke-Named-Chris
    A-Bloke-Named-Chris 7 днів тому

    8:39 wonder what those two are talking about

  • Joshua C.
    Joshua C. 8 днів тому +2

    I'm confused by the opening.
    I thought that the jet wouldn't leave NY state at the year's income of an average American.

  • chepe263
    chepe263 9 днів тому

    are you the same guy from "Half as Interesting"?

  • MrSensitiveNipples
    MrSensitiveNipples 9 днів тому +1

    In as simple terms as possible: time is money.

  • Are you Serious
    Are you Serious 10 днів тому +2

    Wouldn’t it be cheaper to just drive from New York to Beijing? Psh stupid asses

  • Waseem Yusuf
    Waseem Yusuf 10 днів тому +1

    HOW DOES HE KNOW SO MUCH?
    Edit: nvm, just realized that the tiny number on the bottom left points to the source of the information in the links in the description.

  • Dnl k
    Dnl k 10 днів тому

    If I had all the money... I have one please. I can't stand being scanned by immigration all the time and queuing forever and delays.

  • Robin Eldred
    Robin Eldred 10 днів тому

    Your math is waaay off, dude.

  • Haroon khurram
    Haroon khurram 11 днів тому

    celebrities use them the most

  • Notmiuser
    Notmiuser 12 днів тому

    I'm too poor to watch this video.

  • Blame USA
    Blame USA 12 днів тому

    Private jet is best because they steal all our money and change our countries!

  • BASE Kyle
    BASE Kyle 12 днів тому

    OPPALENCE. YOU. OWN. EVERYTHAANG

  • Justin Jones
    Justin Jones 12 днів тому

    I live in Bentonville, GO WALMART!

  • Les Gasl
    Les Gasl 13 днів тому

    I’ve been waiting on this

  • William Lau
    William Lau 13 днів тому

    I have news for Walmart, it's not worth flying their VPs to the stories like this. Of the dozens of Walmarts I have been to, none of them is that well ran... Maybe their should have their VPs spend more times at the store instead of an 1-2hr flyby.

  • LucasBrien
    LucasBrien 14 днів тому

    I’m 16 and I wash a private jet every once and a while (private jet owners pay very well). The company that owns it has one jet that seats 7, they have 5 pilots with 3 on call at all times, and they fly about twice per day. I don’t think costs are in mind, I think they use the private jets as a sort of benefit.

  • ExpatMoe
    ExpatMoe 14 днів тому

    The salary of a CEO may be a big factor but more important must be the expected value that the CEO generates. With a 15 million salary, should probably be 100+ million in cost savings / new business/ acquisitions etc. I worked for a company once where the CEO hardly dropped in with the corporate jet unless a 10+ million deal was on the table. Then those saved hours makes sense. If a CEO flies around just to shake some hands in stores then obviously a waste. But hopefully/more likely it’s part of a continuous review on how to make a very large business grow and become more profitable

  • SolamenteVees
    SolamenteVees 14 днів тому

    "I keeps a private Jet!"

  • Rosa I Guess
    Rosa I Guess 14 днів тому

    Private jets are also good for going to international waters and private islands with guests of all ages

  • Anders Blomquist
    Anders Blomquist 15 днів тому

    By using Skype the travelling time would be 0.

  • kamikaze GOD on fire
    kamikaze GOD on fire 15 днів тому

    Aahaaa

  • fladave99 Mills
    fladave99 Mills 15 днів тому

    Private jets keep people away from the MUSLIM JIHAAD!!!

  • Groovy Games
    Groovy Games 15 днів тому

    Why do you sound different?

  • christian legaspi
    christian legaspi 15 днів тому

    Make a video about what happens if a baby is born on an airplane

  • Rubik
    Rubik 16 днів тому

    nowadays there is no need for flights - business can be done online remotely easily!

  • Jake
    Jake 16 днів тому

    PEASANTS.

  • Carl Senden
    Carl Senden 16 днів тому

    Most people could do their business via email and Skype. No need to be there in person.

  • Vadim Propeleyentev
    Vadim Propeleyentev 16 днів тому +1

    I love the way they look personally

  • Stuart Conner
    Stuart Conner 16 днів тому

    The execs don't care about how un-economic it is, they demand the opulence and status it signals.
    screw the shareholder.

  • SyncroScales
    SyncroScales 16 днів тому

    The taxpayer pays for those subsidies and tax write-offs or tax-dodging. All income is taxable do not listen to the narrative. Private jets are also rented out. Sometimes more than one person or group uses private jets together.

  • Steve Schutte
    Steve Schutte 16 днів тому

    You didn't add in the value of an executive being in the office and available instead traveling. At the company I worked at with private jets, that value was more than the salary value of time saved.

  • anti stuff
    anti stuff 16 днів тому

    The wealthy minority and military are the biggest polluters and wasters of resources. Time to end them

  • Dugie Joness
    Dugie Joness 16 днів тому

    Even if these jets were powered with free energy from the subspace and filtered air during the flights, these these eco-commies would also hurt their ass because it hates industrious and entrepreneurial people. they have complexes that they did not learn and all want to get to their shit level.
    CO2 is a life-giving gas and not a poison you morons. Stop cutting forests and building your ecological wood huts and start thinking and supporting technical progress. You can live at a higher level and not destroy the environment, you only have to stop fighting science and technology.

  • Pegasaus
    Pegasaus 17 днів тому +1

    All of this while millions of Walmart employees are barely above poverty line even after working 50+ hours per week.
    Bloody scumbags

  • Wo Land
    Wo Land 17 днів тому

    Ceo's are not in business of making sense. Financial or otherwise. They spend shareholders' money with open heart.

  • BLacKNesMonsTaz
    BLacKNesMonsTaz 17 днів тому

    Also buying a plane and renting it out and or buying in shares of a plane a sharing cost. Or get a membership in private jet.

  • matt bardot
    matt bardot 18 днів тому +2

    6:10 *WALMART MANAGERS MAKE +$110K ???*

  • jcardboard
    jcardboard 18 днів тому

    A guy I went to school with flies these things every day. Seems like a pretty spectacular job especially if you get a lot of hires to the Caribbean etc. His Instagram is pretty good as a result.

  • Bobby Fisher
    Bobby Fisher 18 днів тому

    If they stopped the Private Jets, CEO’s wouldn’t work as hard. Therefore, that company’s gross revenue would likely decrease MORE than the money saved.
    Stop PJ’s = Less profits (mic drop)

  • Connor Wickham
    Connor Wickham 18 днів тому

    Ahh nooo! It was so good until you started talking about “carbon footprint”

  • annie00724
    annie00724 18 днів тому

    For large companies, they may consider the value of others’ time, not only the person flying. Commercial flights are unreliable. A delayed or cancelled flight can ruin an expensive corporate event, waste the time of hundreds of people waiting for the speaker to arrive at a convention, delay scheduled training, or damage professional relationships with valuable clients.

  • Alex Landherr
    Alex Landherr 19 днів тому

    Short answer: "We just want it" [Read in a baby voice of a CEO].

  • Cimajé Horace
    Cimajé Horace 19 днів тому

    It's a little odd hearing you enunciate your T's so hard

  • Amazing Sheppie
    Amazing Sheppie 19 днів тому +3

    Can you make a video about the economics of a hotel/hotel chain?

  • 是邪恶的习近平
    是邪恶的习近平 19 днів тому

    This is silly. VERY few companies charter these things. They buy them and keep a pilot on the payroll. That is what our firm does. Generally we don't fly one person alone. It enables several stops and stops at non-standard locations. Remote locations like Puerto Monte or Caldera or even local places like Greenfield. A jet costs maybe $12,000,000 for a top end corporate. But something like an Encore+ you can get for about $4 million with a op expense of about $2,000 an hour. Total yearly maintenance $200-300,000, so it can be justified, especially if you have a great number of people to fly at non-standard hours.

  • Andrew Taylor-Bloch
    Andrew Taylor-Bloch 19 днів тому

    What's the biggest plane ever commercially flown? What's the biggest military plane? What's the biggest planes can get with current technology? How big could they theoretically get before physics just says "enough."? It's obviously not something commercially viable, so nobody's trying to improve passenger capacity anymore, but I still think it could make a cool video.

  • John Moore
    John Moore 19 днів тому

    It's a thing because people are willing to pay for it. Call it need, exclusivity, status symbol, etc. It doesn't matter. As long as someone is willing to pay for it then private jets are going always be a thing. Create something different that destroys the industry like what happened with train travel and then we can talk costs and logistics of the business.

  • Lor Beast
    Lor Beast 19 днів тому

    My friends father owns a 2008 global 5000 and has 2 bedrooms on board only been on it 3 times

  • Rick M
    Rick M 19 днів тому +1

    While you have your opinion and have slated your spin to that, I enjoy Private jet travel for other reasons. It is convenient, saves a great deal of time; is very comfortable, especially on long flights. I also enjoy bringing my grandkids and other family members with me. You can’t go from Baltimore to West Palm and back in a single day on commercial travel and still have time to see my family members. In addition, once you’ve tried private jet travel you will not want to fly commercial again. Have a nice day and happy safe travels.

  • bongoowongoo
    bongoowongoo 19 днів тому

    en.wikipedia.org/wiki/Guillotine

  • ParabolicCat
    ParabolicCat 19 днів тому

    Another unseen benefit to using private jets is the greatly reduced risk of being a victim of terrorism or a hijacking. If that $24 million/year CEO gets abducted or blown up that's going to be a huge setback for the company which can largely be negated by just flying private aircraft.

  • elchengs4
    elchengs4 20 днів тому

    inaccurate AF

  • repairdrive
    repairdrive 20 днів тому

    So Walmart does value SOME of their "employees". Lol

  • Mister Man
    Mister Man 20 днів тому

    Why don’t you know that the words “a” and “the” have short vowels when preceding words beginning with consonants?! (That is, except in cases in which those words are being used to emphasize the uniqueness of an object.) If you don’t even know that, how am I supposed to believe that you know anything about the economics of private aircraft?

  • spacekookie
    spacekookie 20 днів тому

    In other words: fuck capitalism.

  • Ali Labeeb Alkoka
    Ali Labeeb Alkoka 20 днів тому

    No surprise! Rich CEO decided that the company needs a privilege private jet to travel around the world for personal vacations!

  • Chaz MichaelMichaels
    Chaz MichaelMichaels 20 днів тому

    Your liberal indoctrination is saddening.

  • James Hackett
    James Hackett 20 днів тому

    9:28 is that the Sloan Museum?

  • Deno M
    Deno M 20 днів тому

    carbon footprint? Ghey

  • Pretty Flacko
    Pretty Flacko 20 днів тому

    Filipino pride!!

  • Bryan Del Monte
    Bryan Del Monte 20 днів тому +2

    You ignore a fair number of factors regarding the tax implications of ownership as well. The Walmart example is great and all - but companies buy business aircraft even when this type of situation doesn't occur. Take for example the NE Patriots. Quite frankly, EVERY NFL team should have a biz av jet... versus chartering and the like. Kraft was just the first guy to figure it out. When you look at the amount of time the team flies, the cost of the flights, the time lost, etc., your calculus would fall short. Charter or commercial would be the way to go... which is why most NFL teams go that way.
    What Kraft realized, and what many businesses that are in the 500M to 5B range are realizing is - the government heavily subsidizes plane ownership and operation through the incentives of depreciation and tax offsets available to plane buyers. Maintenance of the plane is fully deductable. Training of the crew and staffing the crew is fully deductable. Private aircraft owners pay significantly lower costs in terms of transportation taxes. And in 2017 through I believe 2020 - the price of the aircraft is 100% deductable and fully depreciated in the year you take possession regardless of the terms of underlying financials of the aircraft.
    Essentially... when you look at what the NE Patriots did - they effectively monetized all their travel, got massive tax incentives to fly, and recaptured probably 300 hours a year of wasted time dinking around with charters and nonnsense.
    Is that worth a lot of money? You bet. So you don't need to be Walmart to cover that - you need to be able to justify, realistically, about $3M or more a year on travel expenses before this all begins to make financial sense.
    This is why the fractionals are finally getting traction. They can satisfy a part of the market that Gulf and Bombardier haven't been able to - the guy who has a million dollars a year in travel expenses... can't afford a jet... a turboprop is too slow... he wastes time at the airport... but he can't make the money work to buy a light jet (although that's changing... given planes like the TBM940 and potentially these new round of ultra light jets under $10m). People like WheelsUp fit the need for the time savings of travel... but for people who aren't spending enough to fully monetize all the costs associated with owning something like a Phenom 100 or bigger...
    Thus, the people who really own these aircraft typically have at least 100M or more in wealth (in the case of families) and are businesses typically with at least 500M in revenues. That's because your typical business plane is going to cost the business or family about $3M a year... payment, hangar, crew, training, maint, fuel, etc., etc., etc., etc. I'm talking your G500 or Challenger 600 aircraft... two man crew, flight attendant, proper maint, proper storage, Jet A, 300 hours a year of flight.
    If you fly lots... the savings go up because you amortize your costs over a greater number of hours... and your marginal costs on things like fuel typically go DOWN if you're buying long term contracts on fueling because you're flying 1000 or more hours...
    That's a pretty big chunk of change- $3M. But understand nearly all of it is a straight up deductable expense... on TOP of all the time that is saved. So not only do people save time... which for those who are valued at $100M/year their net hourly rates are 20K or more... the vast majority of the plane's operations are fully tax free... (since it's tax deductable). By contrast... boats... or cars... do not offer a similar level of tax diffusion...
    Your Marxism bullshit aside... whining about "carbon footprints"... jets make tons of economic sense. If you want to bitch about the Environment... make a video on China. One second of that country's operation has to be equal to every jet in America being in the sky at once.

  • Christian Schenkel
    Christian Schenkel 20 днів тому

    Corporations take private jets due to the ease of mobility. In case of an emergency, you can’t wait for the 7:30 am flight to New York when you have to be there at 8:00 pm the day before. To be honest, I think you’re looking at it wrong. Taking a years salary of a CEO and dividing it by the number of hours is kind of absurd. Many CEOs actually receive compensation in the form of stock. They cannot liquidate mass amounts of stock either. I think a lot of people don’t know that. You should however be looking at how much the company makes every year. Then this price could be fully justified.

  • Tom Hadler
    Tom Hadler 21 день тому

    At 9:00 you said exactly what I was thinking

  • supergameaddicted
    supergameaddicted 21 день тому

    This is just wrong. They do it because they can. Made 800m in revenue this year? You can easily write off 80m in business expenses related to travel cost.

  • bbcisrubbish
    bbcisrubbish 21 день тому

    Surely the tax payer pays for it in the end? Why have you got the trash noise detracting concentration.

  • Timothy Dingman
    Timothy Dingman 21 день тому

    A little telling about income inequity and hubris

  • Digital Evidence Expert
    Digital Evidence Expert 21 день тому +9

    There is a flaw in this analysis. This video attempts to justify the cost of a private jet vs the salary that an executive earns and how many hours is saved vs the hourly cost of the executive. The truth in companies is the value of an executive is how much he can increase the income of the company per hour he works and not what the salary is. An executive is typically worth 10 times or higher than the salary he is paid. This means that saving the executive time with a private jet allows that executive to do other things to greatly increase the income of the company well beyond the cost of the jet or the salary he is paid. The analysis in this video equates the executive's time value to his salary assumes that the company is only breaking even (the money the company pays the executive = the value of the executive's time to the company) and this analysis grossly undervalues the contribution of executives.

    • Sauga Verse
      Sauga Verse День тому

      Actually, your comments and analysis is dead on accurate.
      The value of just having a company employee at a certain location outweighs the cost of getting him/her there.
      Keep in mind that some companies could potentially lose money of they don't send an employee to certain locations where they either have to trouble shoot a problem, or even take over a situation.

  • gf31415 gfrz
    gf31415 gfrz 21 день тому +1

    So how does Al Gore justify flying Private to go to Climate Change conferences?

  • Victor M. Lee
    Victor M. Lee 21 день тому

    Overall this is a good video, but some assumptions need to be revisited. For example, private jets often CAN fly faster than commercial jets. This is in part because they are often less restricted in fuel utilization. This then changes the calculus quite significantly for the rest of the video.