Have you ever wondered if private jets justify their economics or if they are just an outright waste of money? We are here today with a video that will explain to you about whether a private jet makes sense in economic terms.
Private jets are regarded as something that is only befitted to the super-rich. The notion is actually quite true. Private jets are a representation of incomprehensible amounts of richness while being bad for the environment that we all are a part of. The private jets belong to a certain class of people that find it okay to spend tens or hundreds of thousands of dollars for a single flight. Yes, a single flight!
However, businesses are able to justify this expense and tout it as worthwhile. So, how does it make sense to spend $8,000 or more to make money? The economics of this decision is understood when you consider the time that is being saved by flying private jets. Take the example of Walmart that owns a fleet of 20 private jets. It is the largest fleet that any American company possesses. These private jets are generally used by the vice presidents of the company.
Why? That is because the company has a goal that no one should spend a night away from their assigned base in Bentonville. The fleet of private jets actually makes sure that this goal is met. This enables the executives of the firms to visit the stores that need visiting and return back to Bentonville on the same day. This allows Walmart to cut down what would otherwise be a 4-day trip into a single day trip.
And it is in this that economics of a private jet is explained; the time that is being saved from the salaries of the executives of high levels. There are, of course, other circumstances where private jets are quite feasible, but you will have to watch the video below to learn more about such circumstances!