Item — HN Reader

Vastly more favorable today than it was when Concorde flew.

1) Rich people are WAY richer, and time is even more valuable 2) Businesses have some very important employees and "2 day trip" vs "3-4 day trip" is worth $50-100k 3) Larger population of people able to pay $20-30k for a flight than ever before.

The biggest practical impact is there's probably going to be a private jet version instead of just a commercial one, and there will likely be transpacific demand exceeding transatlantic. Also government/military use.

1 comments

What are some examples of employees so important you would pay $100k to get them somewhere immediately?

You are not thinking high enough the food chain. I mean heck you have tenured SV engineers cracking $1mm with RSUs. It’s not rare in finance for folks to be hitting $3-5mm with bonus. So that’s what $19k comp a day. If that individual is making $5mm they are more than likely making a multiple of that for the organization.

Even these days, a lot of retailers operate fleets of private jets even for district or regional managers, because it saves somebody like Walmart a lot of paid hours to fly someone from rural town A to rural town B rather than potentially deal with the hassle of an overnight booking at an airport hub.

I still don't quite get it given I have never worked high enough or in a big enough corp. What kind of mission a person earning $19k a day have to do at the destination to justify the cost? I imagine to earn this much their main responsibility is to lobby / influence someone important (at dinners, golfing and such). Otherwise, if there are no outsiders involved the whole thing could be just done online. If it's about lobbying though - does it have to be done immediately and 3-4 times a week?

Another example that comes to my mind is a highly skilled expert in repairing some important machinery, e.g. ship engines or factory lines.

Again thinking too small. Large business dealings are still done in person, who is going to give another entity $50mm or more without meeting in person, having dinner and getting to know the counter party. It’s not about lobbying so much as time in person counts.

Who said anything about 3-4 times a week? There are plenty of businesses with high earners where time matters and I could see flights like these being profitable. Boards meet quarterly typically and they are often preferred to have in person.

Well yea great but why do they have to be there so quickly that not even a private jet is good enough?

What kind of multi million dollar deal blows up because a dude arrives 18 hours later? And what are they doing when they get there that couldn’t have been done online?

Again, time is money. It’s not about arriving later but the efficiency of time. Many different attributes to consider from sleep, to time optimization or more simply a lot of folks don’t particularly enjoy the long travel and it’s worth the premium. The kind of trips I am thinking about are business related, may only last a day or two with zero buffer before or after.

In business face time still matters. Less than prior to COVID but it still matters. Most boards prefer to meet in person.

If a fund can get into the Anthropic Series A vs. not get into the Anthropic Series A based on a flight to meet with the team, that is worth buying the supersonic plane even if you scrap it after.

American execs negotiating memory two months ago in Korea?