Israel Slodowitz, founder and CEO of Craft, says AI and IPO wealth is pushing new buyers straight to super mid and heavy jets, skipping entry-level models.
Slodowitz estimates only about 0.0001% of the world's almost 8bn people fly private today and expects a major aircraft and parts shortage as that share grows.
Slodowitz says owning a jet makes sense around 150 to 250 flight hours a year, and he warns that bonus depreciation's recapture rules and stock capital gains create a headwind for new wealth.
New tech fortunes are pushing buyers straight into big jets
Private aviation demand is being reshaped by a new wave of wealth from AI companies and large public offerings. Buyers are jumping to bigger jets just as aircraft and parts supply tightens. Owning is expensive and operationally heavy, so unless someone flies a great deal, charter, jet cards or fractional programs usually fit better.
Takeaways
New tech wealth is driving jet demand. Slodowitz says the first big purchase after making money is flying private. Wealth from AI companies and listings such as SpaceX and the planned OpenAI IPO is sending buyers past light and midsize jets straight to super mid and heavy jets.
Aircraft and parts shortages are coming. About 0.0001% of nearly 8bn people fly private, a share he expects to more than double. Manufacturers and suppliers will struggle to keep up, with new Bombardier deliveries already taking three to four years and high-end values rising.
Owning only makes sense at high usage. The traditional threshold is 150 to 250 flight hours a year. Owning is as complex as running a small airline, so some clients flying 300 hours still decline. Its main benefit is leaving four hours early instead of giving 24 hours' notice.
Ownership costs go far beyond price. A Global 8000 costs about $75m new, most buyers go used, and he builds in 10% annual depreciation. Three to four pilots at $1 to $2m, plus insurance, hangar, maintenance and fuel, push running costs to $2 to $4m yearly.
Craft pairs charter income with an exchange fund. Craft runs a charter business selling mostly to larger brokers, with an exchange fund layered on top so holders of concentrated stock can diversify. The idea came from his own volatile profits with one aircraft and clients exposed to single stocks, like IBM's 13% one-day drop.
Bonus depreciation helps new wealth less. Bonus depreciation, reintroduced in 2025, lets owners expense the full aircraft in the purchase year, even with 80% financed, if business use is at least 51%. Recapture is taxed as ordinary income and new fortunes sit in capital gains, so it becomes a headwind.
Aircraft ladder and prices
Light jets such as the Phenom 100 and 300 seat about six, charter near $7,500 an hour, and cost $3 to $5m pre-owned.
Midsize jets such as the Citation XLS and Latitude charter near $9,500 an hour and cost $10 to $20m pre-owned.
Super mid jets such as the Challenger 350 and Praetor 600 sit above them, and heavy jets such as the G450 run $20 to $30m.
Ultra long range jets such as the Global 8000 and G700 are flown by people like Jeff Bezos.
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On this episode 3
Show 1
Buying and operating checklist
Avoid non-exclusive brokers, and check for corrosion, which can be the most expensive problem, especially in engines.
Consider engine programs, and look at the Argus safety rating, since public safety information is thin.
Budget for surprises such as a $24,000 de-icing bill in Aspen and event fees of $20,000 to $30,000.
Starlink is essential and costs about $3.3m per aircraft.