From a $27,500 Charter Company to a $4 Billion Private Jet Giant | Kenn Ricci, Flexjet
David Senra talks with Flexjet owner Kenn Ricci about turning a $27,500 charter company into a major private jet business, losing and buying back his company, and giving his kids their wealth while he is alive.
The gist
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Ricci gifted his kids shares of a family limited partnership at birth, preferring to guide their money decisions while alive over ruling from the grave.
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At 26 he bought J&J Aviation for $27,500, using the company's own $27,000 in the bank plus $500 from his dad.
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Banks rejected his used-jet fractional plan until Warren Buffett bought NetJets for $750 million in 1998, after which Ricci raised almost $300 million in debt.
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Shopping for Bombardier Challenger 300s, Ricci ended up buying Flexjet for $180 million in 2014, then won Gulfstream exclusivity and now operates 85 of them.
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Ricci says any Flexjet staffer, even one earning $80,000 a year, can comp a $300,000 trip without asking a supervisor.
"As soon as I could, I gifted shares. When they were born, I gifted. It's a family limited partnership, so the general partner, which is me, still can... I have all the flexibility in the world to make distributions. It's a phenomenal vehicle. So, Walton had it right. It's a gr..."
▶ Play at 9:46"Who's got the best fleet? It's Bombardier. They have these Challenger 300s which are super mid. This is where the market is going. There's these eight passengers, transcontinental, kind of the perfect fit."
▶ Play at 53:56"And now we still buy them today. I mean, we're the largest Gulfstream operator in the world. We have 85 of them."
▶ Play at 58:36What they recommend · 3 picks
"As soon as I could, I gifted shares. When they were born, I gifted. It's a family limited partnership, so the general partner, which is me, still can... I have all the flexibili..."
"Who's got the best fleet? It's Bombardier. They have these Challenger 300s which are super mid. This is where the market is going. There's these eight passengers, transcontinent..."
"And now we still buy them today. I mean, we're the largest Gulfstream operator in the world. We have 85 of them."
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