00:43:53 · Molly O'Shea, Israel Slodowitz
[00:43:53] S1: That I've I've heard from a couple of people, like, were stories that the windows will pop out and people will get crushed lungs. I've never seen that. You've never heard that? No. I've heard it, and now they're making planes without windows. [00:44:06] S0: Well, I think the planes without windows is actually a very interesting idea, and that has more to do with, like, the the airframe shape. Right? They're, like, there there there's there's one company I think that's building a newer, like, design. This airplane is supposed to be more efficient. I don't know much about it, but it sounds pretty interesting, and they're like, hey. I don't know why we use the windows. They can just do screens on the side, but I don't think that has to do with windows being crushed in. [00:44:28] S1: That's, like, not like, the whole fun about [00:44:30] S0: Just looking outside or [00:44:31] S1: out the window. Like, right now, we're looking at, like, beautiful California. California. [00:44:36] S0: Place on Earth. [00:44:37] S1: There's farms down there. There's lots of mountains. You can't see it. Sorry. But it's Yeah. I don't know. [00:44:42] S0: I think I I would wanna have windows in my plane. Seems to it seems to me like a [00:44:47] S1: We'll have to put up a poll. [00:44:48] S0: Yeah. [00:44:48] S1: Yeah. How many people [00:44:49] S0: want to move in their plane? I I would be curious to to to see what their what what people people ask
00:44:49 · Israel Slodowitz, Molly O'Shea
[00:44:49] S0: want to move in their plane? I I would be curious to to to see what their what what people people ask [00:44:54] S1: to I guess, like, this is an interesting point because you you mentioned that there's gonna be a shortage of planes and and everything as more demand increases. Right? As more demand increases, I assume all the prices are gonna go up. [00:45:08] S0: Buying a plane is really just the beginning of the torture. Right? Yeah. It's everything that comes after buying the plane that really makes you maybe regret your decision. [00:45:16] S1: So are you gonna like, net jets, flex jets? Are you are like, is aero like, are they they're just all gonna increase their prices substantially? Like, how does that work? Yeah. I mean, I think there's we're already seeing like massive wait lists at these fractional programs.
00:45:31 · Israel Slodowitz
[00:45:31] S0: Like, the the the line to get a to to get to get into, an aircraft is maybe two, three years ahead of time. If you wanted to order a plane right now, a brand new plane from Bombardier, they'll probably take you three to four years until, like, I think they're delivering now into 2030. Right? You can always find like, you can actually buy a slot from somebody. So somebody else who got was in line, people are actually, like, reselling these slots because people want, like, planes sooner. So there's already, like, a huge, huge demand for these aircraft, and we are seeing the market price of them trade a little higher over time. But again, like, at the end of the day, they do depreciate. It's not the air aircraft are not like real estate. Right? They do depreciate over time. They get wear and tear, they get fatigue, and then at some point there's a newer airplane with a better a better like sound system or something that you know that people like and and zero windows. Zero windows. Yeah. And over time, the value of the airplanes will go down. But we have been seeing in the last couple of years, like, very weird phenomenon where the price like, we bought this airplane, and now it's worth, more than we paid for it. Really? Yeah. Like, almost $2,000,000 more. What? Yeah. Why? Just because there's like such a lack of, of supply, like of of good airplanes. That's crazy. Yes. Another thing that's worth talking about is like there's just different types of aircraft are some are better than others. Right? So like people think, okay, I'm gonna buy this airplane. It's cheaper, but we're on like the Challenger three fifty. This is like one of the most sought after. But this is the first airplane when I started my company seven years ago. I started with the Challenger 300 and we still have that Challenger in our fleet today flying just as much as it was flying back then. Certain airplanes are have better, like, parts availability, better pilot training, engines if you need, like, if you need to put on rental engines on the plane. So it does matter what type of aircraft you buy, especially if you think you're gonna start flying, like, heavy volume.
00:47:25 · Molly O'Shea, Israel Slodowitz
[00:47:25] S1: Have you seen people make the wrong decision in buying a plane by buying too small of a plane? Like, at what point do you realize that? Yeah. So I know the trend now is buying heavy and and buying really large, but do you see like, you obviously come across people extremely wealthy that probably buy tiny planes too, and you're like, what are you doing? [00:47:46] S0: So so I I know someone who, who just recently had a liquidity event, and he exited about 500,000,000. And he decided first thing he's gonna do is spend 400 k on a global 8,000 or 7,500, charter to Europe, you know, and he and he, and so so, you know, he he he he spent 400 k, but 400 k is still significantly less than 75,000,000, which is what it would cost to buy that plane. Right? And he flew did a flight, and and he's like, you know, that was nice, but I don't know if I need this airplane. Like, maybe maybe I'll I'll get, like, I'll go one step down. So my advice to people is really maybe charter a couple times the plane you think you might want to see if it's really what you want because the cost to have to, buy a plane and realize it's too small or too big and then you have to sell it could be very expensive. It's much cheaper to charter a couple times, see how it goes, and, and then if you like it and you really wanna buy the plane, you can buy the plane. [00:48:44] S1: We haven't talked about this yet, but it's a huge deal. Actually a very big, beautiful deal, the big, beautiful bill. Can you talk about I think they renamed it. Did they really?
00:48:44 · Molly O'Shea, Israel Slodowitz
[00:48:44] S1: We haven't talked about this yet, but it's a huge deal. Actually a very big, beautiful deal, the big, beautiful bill. Can you talk about I think they renamed it. Did they really? [00:48:55] S0: I think so. I don't know what they renamed it. [00:48:56] S1: Well, that's what I know. [00:48:57] S0: Too. Yeah. [00:48:58] S1: Yeah. But can you [00:48:59] S0: talk about how the government is now helping helping write off aviation? It's really, writing it off in a huge way. The big beautiful bill is not the first time we've seen this. In 2017, Trump announced the Tax Cuts and Jobs Act, which was the first bill that introduced bonus depreciation. And then it phased down over time, and it was reintroduced in 2025 with a big beautiful bill. But essentially, what bonus depreciation is is it allows you to expense the entire value of the plane the year you buy it. So if you buy a $10,000,000 airplane, you could take a $10,000,000 business deduction the year you bought the plane, even if you financed 80% of it. So maybe you only put down $2,000,000 on the airplane. You get to take a $10,000,000 expense in your business. And if you're in California and your income is 51% My ears popped. Yeah. We're we're we're in our descent to San Francisco. If you're in California and you're paying 51% taxes, right? You're essentially rather than paying the government 5,000,000 in taxes, you can buy a $10,000,000 airplane, put down 2,000,000, reinvest the other three. So this is like, as you can imagine, a huge unlock for people.
00:48:59 · Israel Slodowitz, Molly O'Shea
[00:48:59] S0: talk about how the government is now helping helping write off aviation? It's really, writing it off in a huge way. The big beautiful bill is not the first time we've seen this. In 2017, Trump announced the Tax Cuts and Jobs Act, which was the first bill that introduced bonus depreciation. And then it phased down over time, and it was reintroduced in 2025 with a big beautiful bill. But essentially, what bonus depreciation is is it allows you to expense the entire value of the plane the year you buy it. So if you buy a $10,000,000 airplane, you could take a $10,000,000 business deduction the year you bought the plane, even if you financed 80% of it. So maybe you only put down $2,000,000 on the airplane. You get to take a $10,000,000 expense in your business. And if you're in California and your income is 51% My ears popped. Yeah. We're we're we're in our descent to San Francisco. If you're in California and you're paying 51% taxes, right? You're essentially rather than paying the government 5,000,000 in taxes, you can buy a $10,000,000 airplane, put down 2,000,000, reinvest the other three. So this is like, as you can imagine, a huge unlock for people. [00:50:22] S1: So this is why people are buying $75,000,000 airplane?