These Are the Ostentatious Economics of Private Jets
Do private jets make economic sense or are they just an opulent expense?
Private jets are only for the ultra-rich and rightfully so. The aircraft represent an inconceivable level of opulence not to mention how bad they are for the environment.
The planes belong to a class of people willing to spend tens or hundreds of thousands of dollars for a single flight. Bust somehow businesses are able to justify this expense as worthwhile.
How is it that paying $ 8,000 or more an hour to fly makes money? The economics lie in the amount of time saved by flying private.
This can be embodied by Walmart who has a fleet of 20 private jets, the largest of any American company. These are most often flown by the company's vice presidents.
In fact, the company has a goal that no one should spend a night away from their base in Bentonville. The private fleet ensures this can be true.
They allow the executives of the firms to do all the necessary store visits and return to Bentonville in the same day. This cuts down what would be as much as a 4 day trip into a one day trip.
Therein lie the economics of private jets; in the time saved from salaries of high level executives. There are also other circumstances where private jets are worthwhile but you have to watch the video to learn about those.