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The Economics of Private Jets

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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
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Text Comments (3062)
Wendover Productions (2 months ago)
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
Ferdinand (1 month ago)
@Tiogshi Laj  Right? I miss the old voice. This sounds like he's talking through a thick blanket.
Kristian Canoy (1 month ago)
Hi Wendover!! I want to request a video about how airline alliances work. (Star Alliance, SkyTeam and Oneworld)
Wubbalubba dubdub (1 month 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 (2 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.
Everything about Romania (2 months ago)
When will we be getting the next episode?
unicycle master (12 hours ago)
The economics are they're fucking rich!
Mikheil Ghvinianidze (1 day ago)
For a person generally 1st class should be preferable compare to private jet. Due to comfort that it provides. However for the company in certain situations as you stated private would be preferable.
Zubair Khan (2 days ago)
Move the head office from Bentonville to somewhere practical. Sell the jets and pay for the move and overnight stays for managers and enjoy the tax deduction
Mel Raven (2 days ago)
I want my Learjet with a wet bar and a brass pole😎😎😎
Anthony Sayson (4 days ago)
There's a direct flight from Los Angeles to Manila. No need to stop via HKG.
doktorjohnwatson (1 day ago)
Exactly! And most connecting flights go via Tokyo or Taipei:D
Greg Jans (5 days ago)
No war but the class war
Eric W (5 days ago)
"Carbon footprint" - STFU with that leftist liberal global warming BS!
Peter R (6 days ago)
Well, there are good people that manufacturing these jets. So if there are people that are willing to buy them why not. More power to them. Except for Walmart. turn in the private fleet and pass the money off to the employees. I know that will never happen, but it's the thought that counts
Nathan Berrigan (7 days ago)
You can sometimes get a charter flight for super cheap when the plane needs to relocate. e.g. Someone charters a plane from NYC to Phoenix. Then someone else charters the plane from LA to NYC. The charter company will sell the Phoenix to LA leg for cheap.
Frank V (7 days ago)
Wasted money Jesus Christ there’s no need for these Vice Presidents to do store visits is a waste time, money and resources.
Philip Sheppard (7 days ago)
5:33 you said north east instead of north west
Nick Rogers (10 days ago)
You lost me when you started hugging trees. nice vid until then tho...
semi-atomic (11 days ago)
Here goes my dream of having a private jet 😥
Aakash Shailendrakumar (11 days ago)
How to watch this video in hindi
vilstas (13 days ago)
Nice explanation, interesting topic. You should rethink the 'man putting on a jacket' association with CEO though.
C hill (13 days ago)
the world's rich and powerful people use these planes for sex trafficking children.. Source: look at what Epstein was doing...flying with tons of politicians, celebrities, and his sex slaves. These people are fucked.
infinitecanadian (14 days ago)
The corporate elites get paid to do this and play with people's livelihoods. Companies are sometimes better off without executives.
David Gretzschel (15 days ago)
6:57 Is this CEO worth that much, though? He seems to have some trouble with putting on their jackets.... I mean.... it's a complicated piece of clothing, to be sure, and he does put it on right faster than I would. But for that money, I'd expect some more Bond-style suaveness, tbh.
Justin Harris (16 days ago)
The value of an employee's time to the company is far removed from their salary. If salary=monetary value to the company, the company wouldn't bother employing anyone. Value to the company will be many multiples of salary.
Petr Gladkikh (16 days ago)
Calculating time that's "worth it" only makes sense if money earned for a company directly proportional to time spent on the job. Which is not true. Sometimes it may be justified but the sad answer is that it is entitlement - simple as that. CEOs are convinced they are entitled for all the perks.
Kevin Johnson (14 days ago)
You're right, money earned isn't proportional to time spent on the job, it's proportional to value added: who gives a fuck about how much time you spend? You can spend all day taking a shit on the job, doesn't mean you should be paid anything valuable. Money corresponds to value added & high level executives and CEO's, since they handle all of the administration and operations of the corporation, add immense value. I'd like to see you try to handle the problems of running a multi-national corporation.
DR NO (16 days ago)
A lot of CEOs make more than 50 million dollars per year when you consider stock options
Napoleon 96 (19 days ago)
There are non-stop flights between MNL and LAX tho
Armistice (19 days ago)
Flying private means if there is a meeting tomorrow on the other side of the globe, the executive can fly immediately. While for commercial, the executive not only have to wait for the time the plane fly, but also go through custom which is a hassle. Even buffet owns a jet so he can fly around
Jace Curtis (19 days ago)
Aren’t there some company rules to limit the number of executives on one aircraft, public or private airplane either way?
ⵉⵜⵔⵓⵏⴰⵓⵜ (20 days ago)
Someone should tell Walmart that there's a thing called Skype.
ENDRAY GG (20 days ago)
david young (21 days ago)
corporate jet in realm of car; as wealthy as sr management; sedan: camry; cadillac; ferrari; suv; and so forth; keeps 5 cars; while ferrari is not driven every day; to know has one; to drive when there is need; regardless; whether its met gala; or chinese hollywood walk of fame; having one just makes sense; even not used; even at pleasure; there is no law; sr managment must slave to stock holders who does no work and get paid; in abundance; above beyond they are due; for money; it takes no skill; to lend money; and what they get was more than justify moral and ethical standard in free entrprise as Henry Ford once said in lawsuit; over stockholder's rights; constitution does not enumerate; american citizens are to slave over money lenders; so what if sr managment bought private jet and flew around ; its no different thna them having ferrari in the garage; and lastly who would want money from people who dont want sr managment to fly private jet; becsue he want that money in his pocket? those people should buy stocks liken to dollar general; i dont want their money; i am the one with skill; no one would hire these stock holders; thats why they are not employed; these are people with no skill to guide stores; companies; all tehy care is money; and becaseu constiton does not recognize money lenders rights; money lend is not debt; therefore, not recognized under the constitution; thus their rights can be ignored under constitution; they are persona nongrata; so when you got it; you got it; and when you are the best; you should not do for free;
Joe Downing (22 days ago)
0:36 Luxor from GTA 5
Android Galaxy (23 days ago)
Android Galaxy (23 days ago)
Zach Smith (23 days ago)
Bentonville is a town of 50,000 and so is Rogers, Springdale and Fayetteville. It’s basically one town of close 300,000 when you take all the small towns bordering all of the towns as well.
Brian Messemer (24 days ago)
Who is that man and what is he doing at 9:03 😂
Tealie17 (24 days ago)
You really like Spokane, it’s in a lot of your vids
Denis Shvets (24 days ago)
just try to find first class tickets from London to Dubai for the next day for 6-8 people? 1. There will be no tickets available so you have to change plans or maybe miss the opportunity 2. And then when you finally find available seats you have to pay 10000 US dollars for one person for round trip, when business jet can hold 8 persons with hi comfort any time YOU need.
Aristocrafied (25 days ago)
You miss a very important point here. You only consider the salary of the person flying, not the value of the work they do. For instance my friend works at an engineering firm and makes about €50k a year but he knows he brings in more than 3 times that in profit for the company. These guys aren't flown over there just for nothing, they must have valuable insights that will improve profits, decrease expenditure or both.
Lauren Conrad (28 days ago)
So Walmart executives get private jets while their associates apply for food stamps? That is messed up, no matter how you crunch the numbers.
Spidonix (28 days ago)
The world's best-selling jet is the 8 seater Cessna Citation XLS
Spidonix (28 days ago)
You didn’t count on delays which does happen on private jet
Zaid Habash (28 days ago)
This video shows how dumb Walmart can be, I mean why don't they hire more management crew that don't need so that they don't need private jets to travel and since they are on a lower scale than these vice presidents they'll get paid a lot less
Michael Red Sox (29 days ago)
With that amount of CO2 footprint, I'd say shoot down every private jet in the world.
Joe Campbell (1 month ago)
Right up there with Al Gore's $30,000 utilitiy bills. YOU all need to make sacrifices and change, not us.
Phil Pan (1 month ago)
That's the problem with our world; we measure the value of things by using a fictitious metric; the "hourly wage" of a CEO.
Yonatan Kanosh (1 month ago)
Elon Musk, you own a jet. How can someone like you put up with this carbon footprint? ELECTRIFY!!!! Also hydrogen fuel is nice
Zero Dawn (1 month ago)
Carboon footprint = Marketing Scam.
Kyle Fitzpatrick (1 month ago)
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 (1 month ago)
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 (1 month ago)
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 (1 month ago)
THANK YOU for pointing out the carbon footprint. Please keep it up!
lisa dodd (1 month ago)
NKT authentic (1 month ago)
Please also make.. The Economics of... 1. Star hotels 2. Cruise liners and 3. Oil refinary companies
Divide By Zero (1 month ago)
I don't think the Regional Vice President has visited my local Walmart recently...
Florin Pappa (1 month ago)
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 (1 month ago)
Carbon Footprint...................Right.
GoneBamboo (1 month ago)
Great for flying young'ns to your private island
GoneBamboo (1 month ago)
Makes sense if your flying underage girls with heads of state
Pablo Gonzalez (25 days ago)
Poor men have molested underage girls in their Geos money isn't the cause it's a tool
Moe Saad (1 month ago)
Man I love all your airplane videos. Keep em coming and thank you!
Ocotillodavid (1 month ago)
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 (1 month ago)
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 (1 month ago)
And the minimum wage in USA is ?
Klobi for President (1 month ago)
$7.25 an hour.
Pat W (1 month ago)
Got to know for a good future
ali rk 12345 (1 month ago)
It's not all about money it's about time in private jet tou can fly anytime you want
Kevin McGushion (1 month ago)
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 (1 month ago)
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 (1 month ago)
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 (1 month ago)
Y ur voice deep??
Felix Murithi (1 month ago)
The calculations on value for money are bullshit
Hoyt Benson (1 month ago)
Hey Sam! I’ve got a vid request! Could you potentially do a video on airport emergency services? Great video, by the way!
yaimavol (1 month ago)
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 (1 month ago)
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 (1 month ago)
time is money
marymarluis (1 month ago)
Can you talk about economic disaster of AIRBUS A-380????
ZK-APA (1 month ago)
marymarluis he’s made a similar video. Economies of big planes vs small planes
Inyalabudbud Punjabbidaliwad (1 month ago)
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 (1 month ago)
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 (1 month ago)
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 themayankbansal@gmail.com. Thanks. ALL THE BEST. Keep Growing.
A-Bloke-Named-Chris (1 month ago)
8:39 wonder what those two are talking about
Joshua C. (1 month ago)
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 (1 month ago)
are you the same guy from "Half as Interesting"?
MrSensitiveNipples (1 month ago)
In as simple terms as possible: time is money.
Are you Serious (1 month ago)
Wouldn’t it be cheaper to just drive from New York to Beijing? Psh stupid asses
Waseem Yusuf (1 month ago)
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 (1 month ago)
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 (1 month ago)
Your math is waaay off, dude.
Haroon khurram (1 month ago)
celebrities use them the most
Notmiuser (1 month ago)
I'm too poor to watch this video.
Blame USA (1 month ago)
Private jet is best because they steal all our money and change our countries!
BASE Kyle (1 month ago)
Justin Jones (1 month ago)
I live in Bentonville, GO WALMART!
Les Gasl (1 month ago)
I’ve been waiting on this
William Lau (1 month ago)
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 (1 month ago)
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 (1 month ago)
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 (1 month ago)
"I keeps a private Jet!"
Rosa I Guess (1 month ago)
Private jets are also good for going to international waters and private islands with guests of all ages
Anders Blomquist (1 month ago)
By using Skype the travelling time would be 0.
kamikaze GOD on fire (1 month ago)
fladave99 Mills (1 month ago)
Private jets keep people away from the MUSLIM JIHAAD!!!
Groovy Games (1 month ago)
Why do you sound different?
christian legaspi (1 month ago)
Make a video about what happens if a baby is born on an airplane
Rubik (1 month ago)
nowadays there is no need for flights - business can be done online remotely easily!
Jake (1 month ago)