Masters in Business – At the Money: Want to Fly Private? Here is How!
Host: Barry Ritholtz (Bloomberg)
Guest: Preston Holland (Founder, Prestige Aircraft Finance)
Date: September 4, 2025
Episode Overview
In this episode, Barry Ritholtz demystifies the world of private aviation with expert Preston Holland. The discussion breaks down who really flies private, the variety of ways to access private jets, the real costs (and benefits) beyond the price tag, and what you need to know if you’re considering taking to the skies in style—without buying your own Gulfstream.
Key Discussion Points & Insights
The Real Appeal of Flying Private
-
Time as the Ultimate Luxury:
"Money can buy anything in the world except for more time... until you start talking about private aviation."
—Preston Holland [03:15]- Flying private lets you bypass commercial airport hassle—no lines, no early check-in, often closer airports.
- The plane operates on your schedule. Major flexibility and “de-stressing” versus commercial flying.
- Not just about exclusivity; health benefits exist by limiting exposure to crowds.
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Beyond the Stereotypes:
The popular image is celebrities and parties, but "the bulk majority of private aviation actually looks like Main Street businesses that have multiple locations."
—Preston Holland [06:41]- Manufacturing and business logistics often rely on private aviation to maintain operations.
- For tax benefits (like depreciation), business use typically needs to be >51%.
Private Jet Options Explained
-
Four Main Ways to Fly Private ([08:20]):
- On-Demand Charter (‘Ad Hoc Charter’):
- Least commitment. Book per trip via broker.
- Pay as you go—highest hourly rate, lowest annual commitment.
- Memberships/Jet Cards:
- Pre-pay for a set number of hours (Exojet, VistaJet).
- More flexibility, slightly better rates, moderate annual commitment.
- Fractional Ownership:
- Buy a share of an aircraft fleet (NetJets, Flexjet).
- E.g., 1/16th share might get you 50 hours/year.
- Monthly fees plus per-hour rates; more commitment, lower per-hour cost.
- Full Ownership:
- Highest commitment. Full control and highest fixed costs, lowest per-hour if you fly a lot.
- On-Demand Charter (‘Ad Hoc Charter’):
-
Cost Logic:
"If you make a big commitment annually, your hourly costs are the lowest."
—Barry Ritholtz [11:00]- The more hours you fly, the more sense it makes to move from charter to partial/fractional ownership to full ownership.
- Thresholds:
- Under 100 hours/year: On-demand charter or jet card
- 100+ hours/year: Consider fractional
- 150–200+ hours/year: Consider full ownership
—Preston Holland [11:46]
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Advice for the Curious:
"Try a bunch of different flavors of aircraft before you start committing to anything long term because you just don't know what you don't know."
—Preston Holland [14:14]- Start with on-demand charter, learn your preferences, then consider more commitment.
Aircraft Types & Progression
-
Aircraft Categories ([15:26]):
- Turboprops: (e.g., King Air) — most cost-effective, least range/speed.
- Very Light Jets: (e.g., HondaJet, Citation M2) — 2-3 passengers.
- Light Jets: (e.g., Embraer Phenom 300, Citation CJ3/4) — regional.
- Midsize/Super-Midsize: (e.g., Challenger 350, Citation Longitude) — coast-to-coast capability starts here.
- Large Cabin Jets: (e.g., Falcon 2000, Challenger 650) — international, maximum comfort.
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Cost Scaling:
"It scales up proportionately as you get larger in the aircraft…higher pilot cost, higher insurance cost, higher fuel burn..."
—Preston Holland [18:03]
How Technology is (Slowly) Changing Private Aviation
- Operational Tech:
- Software for maintenance tracking, scheduling, and tax compliance is growing—but aviation still lags tech-wise.
- Much paperwork is still on paper for regulatory reasons.
—Preston Holland [18:47]
Who Can Fly Private?
What Does It Really Take Financially?
- Rule of Thumb:
- Regular charter use: $2 million annual net income and $20 million net worth.
- Full jet purchase (midsize): $10–20 million income, $100–200 million net worth. —Preston Holland [20:08]
- “That’s not a hard and fast rule... But for everybody, it's different. It is a good rule of thumb.”
—Preston Holland [20:58]
Notable Quotes & Memorable Moments
-
On the Ultimate Value:
"Private aviation is the only way to buy your time back using dollars and actually getting time back."
—Preston Holland [03:15] -
On Vanity:
"The most expensive part of the plane is the window. When the shade is up and you land at the fbo, you look out and you say, oh, I like that one. And so you're tempted to kind of step up."
—Preston Holland [18:03] -
On Trying Before Committing:
"Find a really good broker … Try a bunch of different flavors of aircraft before you start committing to anything long term because you just don't know what you don't know."
—Preston Holland [14:14] -
Financial Reality Check:
"Generally speaking, it's $2 million in net income, right? So that's kind of cash flow to you and 20 million dollar net worth before you start chartering on a regular basis."
—Preston Holland [20:08]
Timestamps for Key Segments
- [03:15] – Core reasons to fly private (time, flexibility, health)
- [06:41] – Myths vs. business reality of private aviation usage
- [08:20] – Four ways to fly private, explained
- [11:00] – Cost structure and decision logic for choosing an option
- [14:14] – Advice for first-timers: try before you commit
- [15:26] – Overview of aircraft types available
- [18:03] – Cost and size scaling, vanity factor
- [18:47] – Tech changes in private aviation
- [20:08] – Who can afford to fly private: numbers and expectations
Episode Conclusion
Barry Ritholtz and Preston Holland provide a comprehensive, jargon-free guide to private aviation that debunks the myth it's only for celebrities. For high-income, high-net-worth individuals or frequent business travelers, a menu of access—from chartering to owning—exists. For newcomers, the advice is simple: start small, try different options, and pick what fits your preferences and travel patterns. The goal? Buy back your most precious asset: time.