The Private-Jet Money Club

Last year we noted a WSJ article about how the super-rich signal their wealth to each other and to the merely rich. Owning items such as watches and art are only the first step; talking about them with casual insouciance is a practiced skill.

Flying private makes it easier to bring Fifi (Citrin-Safadi/WSJ)

Another item discussed in that article--flying on a private jet--has become the number one marker of real wealth.

Flying private has become the ultimate luxury splurge for many wealthy individuals, surpassing Ferraris, Hermès Birkin bags topping $14,000 or even waterfront Hamptons homes. For many of those aspiring to join the ranks of the truly rich, having “private-jet money” is the new goal, dividing the 1% from the 0.1%.

The pandemic unleashed a burst of demand, but providers say popular culture has turbocharged enthusiasm and envy for the fly-private lifestyle. Social media has given younger people a glimpse into the lives of jet-setters, whether it is a model flying with friends to a bachelorette party in Los Cabos, Mexico, or a hedge-fund manager hopping a plane to a birthday weekend in St. Barts.

...The club of ultrahigh net worth individuals with more than $30 million in assets hit a record in 2024, according to estimates from the wealth-intelligence provider Altrata. The U.S. added more than 1,000 millionaires every day last year on average, according to UBS. The billionaire club grew more than 50% between 2015 and 2024.

Thee are surely sub-categories within the private-jet club, ranging from those who lease the planes occasionally to those who own the plane outright and pay their crews as full-time employees (much like the difference between owning a time-share versus the entire property).

Note: Grok describes the difference between the 1% and the 0.1%.

As of Q2 2024, the average wealth of households in the top 1% in the U.S. is about $35.5 million, while the top 0.1% have an average wealth of over $158.6 million. This means the top 0.1% hold roughly 4.5 times more wealth per household than the top 1%. The top 1% collectively hold 30.3% of total U.S. wealth ($43.45 trillion), while the top 0.1% own 13.5% of it. The wealth gap reflects the concentration of assets like corporate equities and business income among the ultra-wealthy.

This Time We Mean It

In 2019 we took the Federal Government's warning seriously and went to the Roseville DMV to get our Real ID.

Look for the bear on CA REAL ID's

You will need a REAL ID driver license or ID card if you want to continue using your driver license or ID card to do any of the following:

Board a domestic flight starting October 1, 2020.

Enter secure federal facilities or military bases starting October 1, 2020. (Note: Check with the federal facility/military base before your visit to verify their identification requirements.)

Purchase firearms or ammunition. (Note: Check with the firearms dealer you plan to visit to verify their identification requirements)

Procrastinators have been rewarded, because the Real ID deadline has been postponed three times. However, the Trump Administration seems to be serious when it says that there will be no more extensions.

A May 7 deadline to get a REAL ID is getting a lot more real—and setting off a mad scramble for U.S. travelers who have yet to get one.

Travelers will need a REAL ID-upgraded driver’s license, identification card or another compliant ID, like a passport, to board domestic flights starting on that date. Despite years of previous delays, federal officials say travelers need to take the May 7 date seriously. At Department of Motor Vehicles sites across the country, it appears many are.

Local DMV offices have added hundreds of appointment slots and extended operating hours to meet the flood of Americans trying to get an upgraded ID in time. From Tennessee to Pennsylvania, people report waiting hours in lines that stretch down city blocks or wrap around buildings. Some have flocked to Facebook groups and other social-media forums to strategize on where to find the least-crowded DMV locations. Others are just venting...

About one in five travelers currently flying through U.S. airports doesn’t have a REAL ID or other compliant form of identification, according to Transportation Security Administration officials. That’s despite the requirement being in the works for decades and states issuing REAL IDs since the 2010s.

If an individual had over five years to obtain a Real ID but didn't and now has to wait in long lines, he will not gain sympathy from me.

The silver lining in all this is that the Real ID should satisfy the requirements to prove citizenship and residency for the new Voter ID laws being enacted in various states. In California we had to provide "social security card, birth certificate, two proofs of California residency, e.g., property tax or utility bill or bank statement." Doing it once was a pain but at least once should be enough.

Heaven from a Shoeshine

Executive Shoeshine, Charlotte

A lawyer catches a glimpse of the divine when his shoes are shined at the airport:

Hunched over, he toiled for what seemed an impossibly long stretch. The diligent and humble effort reminded me of something St. Thérèse of Lisieux said about the merits of redemptive suffering. “I prefer the monotony of obscure sacrifice to all ecstasies,” said the 19th-century Carmelite nun. “To pick up a pin for love can convert a soul.” From where I sat, that’s what the worker was doing: a small thing with great love.

There seemed no past or future, only a continuous present in which he was fully engaged. How often I selfishly worry about tomorrow or dwell on yesterday. Yet this man knew, as the proverb goes, how to be where your feet are.

His efforts breathed new life into my wingtips. Shoes that could have been mistaken for the worn-out kicks of the Nitty Gritty Dirt Band’s Mr. Bojangles suddenly looked good enough to pass military inspection.

When it was time to settle up, I asked what I owed for his services. “Whatever you think it was worth,” he said. Surprised, I asked the question again but got the same answer.

It had been years since I’d been to this shop, but I recalled its prices and figured they hadn’t changed much. Inspired by this man’s trust, I paid him a premium. Our circuitous path to price discovery got me thinking.

A cynic, Oscar Wilde said, is a man who knows the price of everything and the value of nothing. This most uncynical man demands no price for payment, only value for consideration. I think I understand why. Transactions in the material economy may be zero-sum—a dollar in his pocket was one out of mine—but ones in the spiritual economy never are. The abundant trust he placed in me didn’t diminish his stores of unperishable virtue.

How man sees himself and the world around him largely depends on which part, matter or spirit, he identifies as the seat of his authentic self. By transacting in values, the laborer chose the better part. As with shoes, I suddenly realized, so with people.

It’s fitting that a boot polisher would be the one great-souled enough to help me make this connection. He surely knows how life’s curb spares nobody, but that no matter how abraded our exterior, we’re never without intrinsic value. Once the imperfections are lovingly made right, interior magnificence is visible, and we are again glorious bodies.

A typical transaction in a capitalist economy this wasn't. Not only did the vendor insist that the buyer pay only what the buyer thought "it was worth", but the shoeshine man told the customer to do so after he rendered the service, i.e., after he had lost all negotiating leverage. He had made himself vulnerable and had to trust the customer to do the right thing. The latter did, and for just a moment the curtains of the world parted, and we caught a glimpse of the divine.

SFO: the Bounce is Gone

(WSJ photo)

During my working years I flew on United Airlines dozens of times (nothing compared to the marketing guys who were members of the million-mile club), and I grew very familiar with the moving walkways in Terminal 3 at San Francisco International Airport. The 400-ft.-long rubber coverings will soon be replaced with metal plates, and, surprisingly, there appear to be more than a few travelers who will miss the rubber bands:

The bouncy walkways at SFO’s Terminal 3—three are inside the passenger connector to the building—have been around for at least 30 years—even airport officials aren’t exactly sure when they were put in. Unlike the ones more common with movable metal plates, these are made of a long, continuous piece of rubber, and sit on rubber wheels.

Kids like to hop and skip on the "bouncy," and the padding is easier on aging hips, knees, and ankles. However, these modest benefits do not outweigh the economic costs.

The bouncy has been no fun for mechanics, though. At the three other terminals at SFO, which all feature more conventional walkways, [SFO spokesman Doug] Yakel said those belts are made with metal modules that can be swapped out if one breaks. But since the bouncy is made from one continuous section of rubber, he said a malfunction often means the entire belt has to be replaced.

“There’s only one outfit that makes these and there are very long lead times, and these are very expensive to procure,” he said. “It’s simply not a cost effective moving walkway anymore.”

Of all the places and things that have bowed to the ravages of time the rubber-band walkways are far down the list, IMHO, of items that will be missed. For the vast majority of travelers who do not have mobility problems it's better that they walk and do not ride anyway.

Gate Lice

(Image from wheelchair travel)

This airport problem is getting worse: airline passengers crowd the gate and board ahead of their assigned group. [bold added]

American Airlines is piloting a new system aimed at curbing the phenomenon known as “gate lice,” an industry term used to describe passengers who crowd the boarding area ahead of their assigned group.

The initiative comes in response to growing frustration around travelers who often disregard boarding instructions, leading to chaotic scenes at the gate.

While the new technology won’t speed up departures, it seeks to restore order to the boarding process, said the airline, the fourth largest operator out of San Francisco International Airport.

The system involves a warning sound triggered when passengers attempt to board outside their assigned group. When a boarding pass is scanned, an “audible alert” will notify the gate agent, displaying the passenger’s correct group number.

Many passengers rush to the gate out of anxiety or a herd mentality, despite having designated boarding groups, according to psychologists who have studied the “gate lice” phenomenon. But for those who genuinely need early access — such as families or travelers with disabilities — airlines say the prioritization system is essential. They also cite the need to protect the revenue they receive from those who have paid for these privileges.

One of the cultural differences that used to distinguish Americans from some, not all, Asian countries is that Americans would stand in line and wait their turn, while non-Americans would push their way through to get on buses, trains, and elevators. In the U.S. the willingness to wait is still around, but it began eroding a couple of generations ago.

Your humble blogger applauds the enforcement of the old norm, although the term "gate lice" is a bit mean. But I suppose the cultural norm against name-calling has eroded, too.

Flamping

Flamping in Wisconsin (WSJ photo)

By now most people are familiar with the term glamping (glamorous, i.e., luxurious camping), and now there's flamping:

Meet plane campers. They incorporate an obsession for aviation into their rustic getaways, and pitch tents beneath the wings of their small aircraft.

“There’s something about camping with your airplane that’s different from camping with your car,” explains Roger Roberts, a cardiologist.

Fans flock to the Sun ’n Fun Aerospace Expo in Lakeland, Fla., or to smaller airports that offer that unique blend of flying in and camping out—call it flamping.

The epicenter of this pastime is at Wittman Regional Airport here in Wisconsin each summer. Plane campers park in neat rows that stretch as far as the eye can see. Wet clothes and towels hanging from propellers flap in the breeze.

This isn’t your typical commune with nature. The Experimental Aircraft Association’s AirVenture Oshkosh, sometimes compared with Woodstock, routinely draws more than 10,000 planes to Oshkosh and surrounding small airports.

Flamping is squarely a middle class activity. Used Cessnas are in the $200,000 range, well within the reach of retirees with a decent nest egg and a paid-up house.

Flamping, or even glamping, is not something that this traveler is inclined to do, however. Preferring to maximize the enjoyment at each destination, I don't want to be burdened by hauling around too much stuff, much less setting it up and taking it down. Nevertheless....is this a great country or what?

Keep Telling Yourself It's the Safest Way to Travel

My brother's flight from Los Angeles to Honolulu on Thursday was delayed by a stuck door handle. The pilot announced that the problem was "fixed" and the United Boeing flight went on to Honolulu.

Normally I wouldn't have given the matter a second thought but for the spate of recent headlines:

February 6: Boeing 737 MAX Missing Critical Bolts in Alaska Airlines Blowout, NTSB Says

April 9: Boeing Engineer Says Company Used Shortcuts to Fix 787 Jets

April 17: Boeing’s Quality Complaints Mount as Another Whistleblower Comes Forward

We all were relieved when brother landed safely.

For the first time in my life, I'll check the price of flight insurance the next time I take a Boeing flight.

Back to Normal

The Starbucks on Kuhio Avenue is crowded at 6AM with tourists, hotel workers, and early rising old people (cough). After three days on Oahu it's the first time I've been able to resume my normal routine of walking here before sunrise and ordering the morning cuppa.

Then I'll head over to Kalakaua Ave. for the one mile walk back. Can't get too comfortable because there are some family obligations with immutable deadlines--I know, you're in Hawaii--for goodness' sake.

But for now normal feels good.

The Lines Were Quick

Khaled Meshaal (NY Post/Reuters)

Last month there was a moment's trepidation when I booked a flight on Friday the 13th.

Bah! rational guys like me shouldn't let superstition rule their lives. I clicked the pay-and-submit button.

It was more than superstition that paralyzed some people with fear yesterday. Former Hamas leader Khaled Meshaal designated yesterday as the "Day of Jihad":

The former leader of Hamas called on Muslims to stage global demonstrations in support of Palestinians on Friday, and urged Arabs in neighboring countries to take up arms against Israel.

In the Bay Area some schools cancelled classes:

Schools and universities across the Bay Area said they were bolstering security measures — and in some cases canceling classes — amid so-far unsubstantiated threats of pro-Hamas violence.

Gideon Hausner Jewish Day School in Palo Alto, Wornick Jewish Day School in Foster City and South Peninsula Hebrew Day School in Sunnyvale said they would be closed Friday amid concerns that Jewish institutions could be targeted, Jewish Weekly reported.

Stanford Law School announced it would be holding all of its classes Friday on Zoom in the wake of students’ fears around safety on the “Day of Jihad.”

Just in case TSA had installed extra procedures, I showed up 2½ hours before the 8:20 AM flight. The caution was unnecessary as the lines were quick, and I spent an hour nursing a coffee and croissant before boarding.

We disparage law enforcement, the FBI, the CIA, and other alphabet agencies, but a point in their favor is that there has not been a major terrorist attack on American soil since 9/11. Because of that record, there is still hope that the agencies can be fixed.

And yes, the flight went well.

On Vacation

After arrival at HNL, the first outdoor sight is the apron (don't call it tarmac) where the airplanes park. Today there were more cargo containers stored near the gate than I had ever seen before.

The image was an echo of last year's shipping-container pile-up at the port of Long Beach.

Could air shipments through Hawaii be struggling like the whole logistics business? When an industry experiences declining demand and responds with layoffs, imbalances occur.

It will take a few days for my mind to realize that it's on vacation.

Wallet Impact Fee

The Hawaiian legislature is working on yet another ploy to soak tourists:

A “visitor impact fee” bill that would require any nonresident aged 15 or older to pay for an annual license to visit a state park, beach, forest, hiking trail or other natural area is still alive.

Most tourists will likely pay the $50 for the "annual license," and the overwhelming majority will not use it much since few can afford to visit the Islands more than once a year.

Every attraction which can be easily fenced off, for example Hanauma Bay and Waimea Falls, already charges a steep admissions fee to non-residents, and a general "visitor impact fee" is obviously just a pretext. Existing fees aren't even spent consistently on site maintenance:

Hapuna Beach State Recreation Area has collected more than $1.5 million in fees from visitors, but the fees have not been reinvested into the park.

It's a race between my old home State of Hawaii and my new home State of California to see which can dream up new ways to tax visitors. And they wonder why the convention business is down.

Note: after the break is the full article.

The Day of Departure

The cup leaked badly

On the day before my return to San Francisco I cleaned out the fridge, reviewed Mom's tax records, and filled up the gas tank. The next morning was scheduled for laundry, packing the suitcase, and visiting Mom.

But the first thing on the agenda was to walk to the Waikiki Starbucks, which had become part of the daily routine.

That part didn't go well. After a few minutes coffee dripped down my hands and onto my shoes. I checked the lid several times, but it turns out that there was a pinhole leak on the bottom. Auwe!

From the McCully 7-Eleven

After dumping the rest of the cup I stopped by a 7-Eleven to buy an Azuki Bean scone, regretting briefly the enthusiasm for disposing of some tasty leftovers the night before.

Departure day had a few more hiccups: Mom was fast asleep when I stopped at the assisted living facility (we talked on FaceTime the next day, but it wasn't the same), the airport Agricultural-Inspection conveyor belt was broken, causing thousands of pieces of luggage to back up, and not coincidentally my flight was delayed an hour.

It was 45 °F when I arrived at SFO, and out came the jacket that had last been worn when I left San Francisco. I was home.

No Wondering What's Behind That Door

The flight to Honolulu was full.

I headed to the restroom halfway through the 5½ hour flight. It's best to go before one absolutely has to.

Planning paid off, as an abundance of blue tape signalled that one of the two restrooms in the main cabin was out of order.

I let a couple of people in obvious distress cut in front of me. Standing is better than sitting on a long airplane ride, so it was a win-win.

The rest of the flight went by uneventfully. After my brother picked me up we had lunch at the usual place, then went to see Mom at her assisted living residence.

In the evening the temperature was a cool-for-Hawaii 75 °F. However, to us snowbirds it's positively toasty.

Worth 10,000 Words

Picture is better, but TikTok (below) is best (WSJ graphic)

Airlines have installed larger overhead bins to accommodate more bags. However, there is an optimal way to place the bags to use the space efficiently. [bold added]

A growing number of planes have larger, drop-down bins, which fit one to two more bags each and reduce the number of gate-checked bags...But the new bin math only works if bags are placed a certain way, and the new way of doing it is another snarl in an already stressful travel journey.

The bags should be stowed on their side, not flat, as is the norm with older bins. Major U.S. airlines have plastered stickers in the back of the new bins depicting the proper position. Flight attendants on many airlines make repeated announcements about turning the bags onto their side, sometimes comparing the ideal bin layout to a plate of tacos.

Your humble blogger wasn't getting it from a verbal description ("stowed on their side"), and the "taco" or "book" metaphors improved understanding marginally.

United Airlines produced a TikTok that explains overhead-bin fitting clearly in ten (10) seconds. Can a PhD thesis be far behind?

@united Answer @im_siowei had to show our new overhead bins some love #travel #traveltiktok #luggage #comedy #unitedairlines ♬ Up and down girl - mik :-))

“We have to travel now thinking that our baggage is going to get lost”

Orphaned luggage at Heathrow (WSJ photo)

In yesterday's post on the decision to drive, not fly, the 840 miles to Seattle one factor I did consider but failed to mention was that air travel is experiencing a raft of problems due to short-staffing. Foremost is the headache of lost luggage.

Every bag in that ocean of unclaimed luggage we’re seeing on airport floors has a story behind it.

To hear those stories is to understand just how maddening travel has become for many in 2022. Travelers say calls, emails, chats and tweets to airlines about lost bags frequently go unanswered by short-staffed airlines and airports. They hear conflicting information—or nothing—about the bag’s whereabouts.

Efforts to find and retrieve their bags, even when devices like AirTags pinpoint the location, are eating up hours and sometimes days of vacation time. And that doesn’t count the daily shopping trips for clothes until (or if) the bag shows up.

...Yvonne Heerema, senior luxury travel adviser at the Shameless Tourist travel agency, spent the first two days of a June trip to London stressed about three bags that didn’t show up with her family on a United flight from Newark, N.J. (United said it works hard to reunite costumers with lost bags “as quickly as possible.”) Now she warns clients with coming trips to prepare for that possibility. Her tips include packing one suitcase that has a few of each passengers’ items in it and buying AirTags.

“We have to travel now thinking that our baggage is going to get lost,” says Ms. Heerema, who is based in Austin, Texas.

A family member was stuck in a Southern California airport for eight hours while a substitute plane was "on the way." Eventually the U.S. major carrier put him up at a hotel and didn't lose his luggage, so he was one of the lucky ones.

Where was he going? To SFO, 400 miles away. He should have driven.

Car Trip

Today's RT fare for two from San Jose,
nearly as close as SFO, was $1,168, not
enough to change the decision to drive.

Planning ahead for a trip to the Emerald City this weekend, I called around last month for air fares between SFO and SEA.

$1,300 for two round-trip coach fares was disappointing but not surprising; the price of aviation fuel has taken off like other petroleum products. And we're not even including the cost of renting a car.

So we're driving, at an estimated total gasoline cost of $400 at $6 per gallon. Yes, I know I'm excluding the cost of wear and tear on the vehicle, but it's been underutilized at 10,000 miles for 3 years, so I'm not counting wear and tear, insurance, and time to the next service call (an important part of the analysis of transportation assets).

Another negative: the cost of driving will add about 10 hours in each direction.

But look at all the time we'll have to talk to each other instead of texting.

Plus, there will be an opportunity for side trips. I pulled out the old travel maps and guide books. You never know when the GPS might go out...

Plenty of Room

Source: State of Hawaii visitor statistics

On a warm Saturday afternoon at Ala Moana there's plenty of room on the beach.

No one's wearing a mask. On the beach, where there's natural Vitamin D that's being generated, the coronavirus seems a distant worry.

Tourism has rebounded, higher than 2020 and 2021, but still not to 2019 levels. The nighttime streets of Waikiki are less crowded, and it's more of a pleasure to stroll around.

I bought my ticket before the recent surge in fuel costs. Timing is everything.

Landing Ritual

My brother and I resumed our habit of stopping at the Mini Garden restaurant on the way home from the Honolulu airport. Except for the masked waitress, there were no signs of the reason that we had not been able to visit for nearly three years.

My brother usually orders a tendon dish

The three other parties--one a table of ten--all were engaged in animated conversations with nary a face covering in sight.

The menu prices were significantly higher; it cost $41 for two lunches plus one take-out to bring to Mom later.

I gave the waitress $50, and she asked if I wanted change. I had been thinking about leaving her all of it, but that presumptuous question quelled my generosity. Two dollars were removed from the nine on general principle.

The ingredients were fresh, the food was hot, and the ambience was good. Mini Garden after the airport is one ritual we'll keep intact.

A Grand Time

Good old Disney days (2016): no masks, no social
distancing, and not having to break the bank.

It's cheaper to stay at Disneyland in Paris for a week, including plane fare, than Disneyland Anaheim.

a recent report from KTLA’s sister station shows that a trip to Disneyland in Anaheim is now nearly twice as expensive as traveling to Disney in Marne le Vallee, France.

This month, the outlet reported that...in June 2022, it costs a total of $4,571.50 for two people to stay at the Paradise Pier Hotel – the cheapest Disney [Anaheim] property resort available – for six nights with five days of park tickets included.

Meanwhile, at Disneyland Paris, the cheapest on-property hotel, the Hotel Santa Fe, was quoted at $2,173.66 for seven days of theme park tickets and a six-night stay (no meals were added on and no insurance was selected). Even with a $1,456.74 flight from Los Angeles to Paris included, the experience would still come out to a grand total of $3,676.06.

Overall, travelers in this scenario could save $895.44 by going to Disneyland in Paris instead of Anaheim.

The cost differential is even higher for Bay Area parkgoers, since we would have to drive to Anaheim. At current gas prices we would save at least a grand by going to Paris.

Before It Was Cool

iPhone + factory headphones

Inexpensive, old-fashioned, hard-wired headphones are cool:

Fashionable young celebrities including Bella Hadid, Lily-Rose Depp and Zoë Kravitz have been photographed strutting around town with blatantly corded headphones...Apple corded headphones go for just $19, and those from other brands can cost even less. For disorganized types, corded headphones are easier to keep track of and needn’t be charged. Plus, some folks have vague, pseudo-scientific objections to “radiation” that they associate with wireless pods.

I've had wireless pods fall out of my ear on the street and in bathrooms, and what happened next prevented me from wearing them again...'nuff said about that. The corded buds also drop out but don't reach the ground.

And there's no worrying about bluetooth radiation, which scientists say is harmless, but scientists have been known to change their minds.

I switched off the AirPods when the airlines were adamant about turning off wireless transmissions from all devices. Not having to worry about earpieces running out of juice during a five-hour flight is an under-appreciated benefit of wired headphones, and I continued to use them even after AirPods were permitted to be used during flights.

Choosing what best works for you, and not trying to catch up with a trend, makes for a happier life.