Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg Business
Speaker 1: Week with Carol Masser and Tim Steneveek on Bloomberg Radio.
Speaker 2: Researchers for McKinsey recently determined that women spend less time
Speaker 2: on the job than men in comparable roles in career
Speaker 2: paths eight point six years for women versus ten years
Speaker 2: for men, and that they were more likely to make
Speaker 2: decisions putting them in roles in industries that were dying. Gosh,
Speaker 2: it's kind of it's really grim. Yeah, large career gaps,
Speaker 2: especially during child rearing years, and the desire for more
Speaker 2: flexible work took a toll. Listen to this, Carol, Such
Speaker 2: time and career choices, they said, docked women's lifetime pay
Speaker 2: by a cool half million dollars.
Speaker 3: That's a lot.
Speaker 2: Women, they urged, need to choose careers in fast grown
Speaker 2: fields and spend more time on the job.
Speaker 4: Rap.
Speaker 5: That's a strong message. I mean, that's a big difference.
Speaker 5: And if you think about people living longer and like
Speaker 5: maybe on their own, like how do you support yourself?
Speaker 2: Simone Foxman writing about this for Blueberg News. Check out
Speaker 2: that story and more if you're interested.
Speaker 5: All right, curious what Alison Kassik has to say about
Speaker 5: all of this. She's the author and journalist who has
Speaker 5: worked at CNN and is a freelance correspondent for ABC News.
Speaker 5: Equal Page just one of the things she tackles in
Speaker 5: her deeply personal new book. It's entitled What's Up with
Speaker 5: Women in Money? How to do all the financial stuff
Speaker 5: You've been avoiding. She joins us from Long Island. You know,
Speaker 5: we've been talking about your book, and you know very
Speaker 5: deeply personal your story. You go there right in the
Speaker 5: beginning of the book, tell us about and share with
Speaker 5: our audience why you said about writing this.
Speaker 6: Yeah, great to be on your show, Thanks for having me.
Speaker 6: So I wrote this because, yes, I was CNN's business correspondent,
Speaker 6: often reporting from the New York Stock Exchange. But at
Speaker 6: the beginning of my time there, I wasn't involved in
Speaker 6: my own financial life. I let my husband handle all
Speaker 6: things financial, and that was That was not a good decision,
Speaker 6: because when the marriage went't bad, when you know, I
Speaker 6: wanted to get out of the marriage, I felt stuck.
Speaker 6: I stayed in the marriage longer than I should have,
Speaker 6: years longer than I should have because he kind of
Speaker 6: knew where all the money was and how to handle
Speaker 6: all the money things. And I had two kids under
Speaker 6: the age of ten at the time. You know, what
Speaker 6: if I made a mistake, what if I lost all
Speaker 6: of our money. The difference is that I just didn't
Speaker 6: have the confidence to make those big financial decisions. I
Speaker 6: didn't have the experience of making the decisions over the
Speaker 6: course of my marriage, and that in essence cut down
Speaker 6: on my confidence in my ability to make those decisions.
Speaker 6: But as I got through that, I realized that there
Speaker 6: are a lot of women different kinds of jobs, high
Speaker 6: income scale to low income scale, married, divorced, widowed, single,
Speaker 6: who feel the way I felt that. You know, they
Speaker 6: don't have any kind of involvement or as much involvement
Speaker 6: as they should have in their own financial lives. And
Speaker 6: it's not something that women talk about because you know,
Speaker 6: we don't want to be seen as an intellig There's
Speaker 6: also a lot of embarrassment and shame around it as well.
Speaker 2: Why do you think men are the ones who end
Speaker 2: up doing this stuff in a lot of relationships, Like
Speaker 2: you have a chapter in here on how to buy
Speaker 2: a car with confidence, understanding insurance negotiating in your words
Speaker 2: like a man. Why do men? Why are men the
Speaker 2: ones who usually do this in relationships?
Speaker 6: You know, I think if I could answer that in
Speaker 6: one reason only, there are I think there are many reasons,
Speaker 6: but I think the biggest reason is that it is cultural.
Speaker 6: There's a cultural aspect that women have with money, and
Speaker 6: I think it starts early when we are girls, and
Speaker 6: whether we like it or not, girls and boys are
Speaker 6: socialized differently. And it's not that girls are told not
Speaker 6: to care about money. It's just that boys are often
Speaker 6: introduced to the family finances earlier, They're encouraged to be
Speaker 6: financially independent earlier, and so you've got these girls who
Speaker 6: grow up being uninvolved, and they can grow up to
Speaker 6: be women who avoid money issues, and that of can
Speaker 6: be compounding in the way that you avoid something long enough,
Speaker 6: you become fearful of it, and so lack of interest
Speaker 6: can lead to a lack of information, and that lack
Speaker 6: of information can lead to a lack of confidence and
Speaker 6: being able to manage all things financial, you know, whether
Speaker 6: it's managing your spending, managing your debt, being able to invest,
Speaker 6: and being able to negotiate your salary, all of that
Speaker 6: hits confidence. And I think I think if I'm going
Speaker 6: to answer it in one answer only, I'd say, it's
Speaker 6: the culture.
Speaker 2: It's got to be the culture, so you know, it's
Speaker 2: it's It's interesting. Carol mentioned this is a deeply personal book,
Speaker 2: and I mean it really is. You're not just you.
Speaker 4: Don't.
Speaker 2: You don't just talk about your relationship and your marriage
Speaker 2: that prompted you to write this, but also your upbringing
Speaker 2: and your relationship with your father. And I think a
Speaker 2: lot of people would say that that was really challenging.
Speaker 2: I'm wondering, though, as a parent now, how you make
Speaker 2: sure that your kids are equipped to make these decisions independently.
Speaker 6: Very good question. I'm not a perfect parent, and I've
Speaker 6: got two kids once nineteen, my son is nineteen, my
Speaker 6: daughter is twenty two. They are invested in the market. Yes,
Speaker 6: I've taught them how to do it, and I've encouraged
Speaker 6: them to consistently invest as much as they can. I've
Speaker 6: explained to them the difference between savings and investments and
Speaker 6: what the difference is, and why it's important to invest
Speaker 6: your way to wealth because you can't save your way
Speaker 6: to wealth. The thing is, these things are not taught
Speaker 6: in school, so there's only so much parents can do,
Speaker 6: and really, I think so much of this is really
Speaker 6: just taking the effort to learn it on your own
Speaker 6: or through osmosis or hopefully you've got parents to guide you.
Speaker 6: I'm certainly trying to guide my kids as much as possible.
Speaker 5: You know, it's interesting, Allison. We talk about this a
Speaker 5: lot here, and I feel like you've obviously you know,
Speaker 5: you're a journalist, and I know this topic has come
Speaker 5: up over the years, and I would say for those
Speaker 5: of us who've been doing it for a while, just
Speaker 5: like yourself, I feel like I could go back ten
Speaker 5: years and have this conversation. Twenty years, I could have
Speaker 5: this conversation.
Speaker 3: I think about.
Speaker 5: CEOs, female CEOs who've come in and talked about even
Speaker 5: that in their households to some extent. So I'm wondering,
Speaker 5: you know, why haven't we we've talked about financial literacy forever.
Speaker 5: Why isn't that happening? What is it that we are missing?
Speaker 5: Because you can teach stuff at home, right, But I
Speaker 5: wonder if we made it part of our curriculum from
Speaker 5: kind of a younger age, teaching kids about money, the
Speaker 5: importance of money and all that good stuff, how different
Speaker 5: things might be.
Speaker 6: Oh, I am one hundred percent with you, And to
Speaker 6: be honest with you, I don't know why this stuff
Speaker 6: isn't really being taught, and I think it's actually beginning
Speaker 6: to be taught. It's being thrown into the curriculum. I
Speaker 6: don't know how much, really, And I'm wondering if maturity
Speaker 6: has a lot to do with it, because can you
Speaker 6: imagine getting into all the finer details of investing with
Speaker 6: a fifteen sixteen year old there's all I think there's
Speaker 6: also maybe a mindset here of younger of younger people.
Speaker 6: I know when I was younger, and it may have
Speaker 6: just been because we didn't have access to investment platforms
Speaker 6: like we do today.
Speaker 3: Right in fractionally investing, you.
Speaker 6: Know, I think that I think that you think that
Speaker 6: you have got, you know, fifteen years old. Let's say
Speaker 6: they bring it into the schools at fifteen the curriculum
Speaker 6: at fifteen years old, You'll pay attention, But I guess
Speaker 6: how seriously will the kid take it because they think
Speaker 6: they've got forever to start investing. And I think unless
Speaker 6: the curriculum really hits home about the importance of investing
Speaker 6: early and consistently, but investing early, maybe then it'll catch on.
Speaker 6: But I think you make a really good point, and
Speaker 6: I did. I did write this book through a journalist's lens,
Speaker 6: So not only did I get the tips and tools
Speaker 6: of financial literacy, I wanted to tell stories, so not
Speaker 6: just inspirational ones through the celebrities that I interviewed, but
Speaker 6: also names you wouldn't recognize a lot of these people.
Speaker 6: A lot of these women are anonymous because they are
Speaker 6: ashamed that they're in this situation. So I, for example,
Speaker 6: I interviewed a venture capitalist who who described money as
Speaker 6: something that she was fearful of, and she, at fifty
Speaker 6: three years old, she hadn't invested in one retirement account,
Speaker 6: didn't know the basics of personal financing, and really was
Speaker 6: felt overwhelmed. And this is a woman in venture capital,
Speaker 6: in the venture capital space who was highly highly successful,
Speaker 6: but she had not invested in herself because she didn't
Speaker 6: have the confidence. I mean, it is really amazing that
Speaker 6: we can be badasses at our jobs, but then in
Speaker 6: our own life there's this disconnect that's really inexplicable.
Speaker 5: Yeah, and I guess what I would say in terms
Speaker 5: of I agree with you, like a teenager, they're gonna
Speaker 5: be like yo, you know investing, you know, Warren Buffett,
Speaker 5: like all that stuff might go past, but just the
Speaker 5: idea of debt versus not debt, savings versus, you know,
Speaker 5: just kind of those kinds of things or like you know,
Speaker 5: you even talk.
Speaker 3: I love this idea.
Speaker 5: I think I even remember my parents like having an
Speaker 5: envelope in the drawer of cash that was like the
Speaker 5: cash for the month or something. And we don't really
Speaker 5: do that anymore, right, everything's digital, but having that concept
Speaker 5: of like a digital envelope of this money is my
Speaker 5: spending money, this is my savings money. Like those concepts
Speaker 5: are really clean and pure and I think make a
Speaker 5: lot of sense. And I do think about even today
Speaker 5: of giving a kid and saying here's some spending money.
Speaker 5: That's it. You've got it for the month. Figure it out,
Speaker 5: Like that's teaching them to budget.
Speaker 6: Right right and getting them involved. And as parents, you
Speaker 6: know your kids are watching you. They're watching if you're
Speaker 6: piling on dead onto your credit cards, they're watching you
Speaker 6: know how how you shop around for things if you broke,
Speaker 6: if the refrigerator is broken, do you just buy whatever?
Speaker 6: Are you taking them with you to go shop around
Speaker 6: and get the or at least online to shop around
Speaker 6: and get the cheapest priced. You know, I think involving
Speaker 6: children in money details is really a first step. It
Speaker 6: seems so simplistic, but it really is a way to
Speaker 6: get them involved.
Speaker 5: Okay, we have been talking about your book in the
Speaker 5: newsroom and you coming on, and I have a bunch
Speaker 5: of questions actually from one of my producers. We only
Speaker 5: have time for one. We only have about a minute
Speaker 5: left here. But if you've got two four oh one
Speaker 5: K plans from different employers, how do you determine whether
Speaker 5: to merge it or just leave it alone.
Speaker 6: I've been told, I've been told to merge them. But
Speaker 6: you're asking the wrong person. I'm not a certified financial planner.
Speaker 6: I can't even I can't even give you financial advice. Okay,
Speaker 6: that is not my realm. I So, like I said,
Speaker 6: I approached this book as a journalist. I did research
Speaker 6: and interviews to get these to get these topics on paper.
Speaker 6: And yeah, they'll have to go talk to their at CFP.
Speaker 5: All right, that's fair.
Speaker 2: Actually good advice.
Speaker 5: Actually that's great advice. And she's a journalist too, and
Speaker 5: I know she'll end up doing research. Thirty seconds left here,
Speaker 5: there's a lot in the book. It's very usable, it's
Speaker 5: really fun. What's one piece of advice you want to
Speaker 5: leave our audience with, just quickly.
Speaker 6: Ladies, be involved in all things financial in your house.
Speaker 6: Have great visibility onto what's happening. Know what your assets are,
Speaker 6: know your debt, know who your beneficiaries are on your accounts,
Speaker 6: know the passwords to your accounts, and especially know how
Speaker 6: much debt you are caring and get involved in the
Speaker 6: tax process as well. It's so as we're nearing tax
Speaker 6: time here, be involved in filing your taxes.
Speaker 5: All right, really fun, Good luck with everything. Alison Kassick
Speaker 5: joining us her new book, What's Up with Women and Money?
Speaker 5: How to do all the financial stuff You've been avoiding,
Speaker 5: joining us from Long Island.
Speaker 2: I want to see what Brooke may has to say
Speaker 2: about this, because she's managing partner at Evans may Well.
Speaker 2: They've got about one point three billion dollars in assets
Speaker 2: under management. She joins us this afternoon from Indiana. Brook
Speaker 2: you argue that the conversation has really shifted from inflation,
Speaker 2: kind of done with that now we're thinking about tariffs.
Speaker 2: But what is the conversation around tariffs.
Speaker 3: To your earlier point. It's uncertain right now. You know.
Speaker 4: Our concern is that the uncertainty will lead to an
Speaker 4: economic slow down more than actually the facts at hand.
Speaker 4: When you look at CEOs recently that were surveyed, the
Speaker 4: survey took place late January or early February, they indicated
Speaker 4: that they're optimistic, more optimistic than they've been in recent quarters.
Speaker 4: That said their biggest concern is geopolitical instability, and that's
Speaker 4: tariffs in addition to a few other policies.
Speaker 3: So the sooner there's clarity.
Speaker 4: There, the more likely they are to hire and to
Speaker 4: spend and you know, and for there to be additional
Speaker 4: business investment.
Speaker 5: So it is interesting when you think about kind of
Speaker 5: the environment that's out there top of mind for you,
Speaker 5: because I think the headlines are fast and furious. They
Speaker 5: can change on an hourly basis, They can certainly change
Speaker 5: on a daily basis, They can change on a weekly basis,
Speaker 5: But is there kind of a longer term thought that
Speaker 5: you have about the environment. We are certainly from an
Speaker 5: investment perspective, and that could even be one that we
Speaker 5: don't want to do anything until it settles down.
Speaker 4: Yeah, we're setting the expectation with our clients that they
Speaker 4: can expect volatility in the near term. Until there's more clarity,
Speaker 4: we're going to see a lot of ups and downs
Speaker 4: in the market. That said, right now, the unemployment rate
Speaker 4: is four point one percent. We've got a pretty healthy
Speaker 4: labor market. Even though we only added one hundred and
Speaker 4: fifty thousand jobs in the last read, we're still we
Speaker 4: still have more job openings than we do unemployed. So
Speaker 4: the labor markets what's held up this economy the last
Speaker 4: few years. And even though sentiment has shifted, that's not
Speaker 4: necessarily a good indicator for future market performance. We've got
Speaker 4: a sixty five hundred dollars or sixty five hundred price
Speaker 4: target on the SMP between now and year end, which
Speaker 4: would be about a fourteen percent bump. And again, once
Speaker 4: we have some more certainty, I think the market can
Speaker 4: move higher.
Speaker 2: So Brooke, I'm wondering about something that Alex was. It
Speaker 2: was Scarlett who just said this on our simulcast. It's
Speaker 2: this idea that tariffs are like, yes, maybe we'll get
Speaker 2: some clarity next week, but the President has shown that
Speaker 2: he can change his mind when it comes to this stuff,
Speaker 2: especially you know if he has an off ramp with tariffs,
Speaker 2: if government of Mexico or the government of Canada, for example,
Speaker 2: proves that it's taking action at the border to prevent
Speaker 2: what he argues is a poorest border and fentanyl being
Speaker 2: allowed into the US, or maybe other parts of negotiation.
Speaker 2: So even if we do get some clarity on April second,
Speaker 2: there's still going to be this uncertainty about whether he
Speaker 2: can just take back whatever he said on April second
Speaker 2: in the coming days.
Speaker 6: No.
Speaker 4: Absolutely, and I think that we're going to see that
Speaker 4: for the next four years.
Speaker 2: So get used to it.
Speaker 3: In other words, well, wait a minute, So that's we
Speaker 3: can do about that.
Speaker 5: Because I think there's an expectation that things are going
Speaker 5: to settle down. So you saying that going to be
Speaker 5: four years of volatility not necessarily.
Speaker 4: I do think, though, we need to accept the fact
Speaker 4: that they're would be pivots at any time.
Speaker 3: Right now.
Speaker 4: You know, we've got a broad range of initiatives that
Speaker 4: they're trying to tackle, and while we'll probably see pivots
Speaker 4: for four years, I think that they'll be less as
Speaker 4: time goes on the next few months. I know they've
Speaker 4: got a very robust agenda that they're trying to push through,
Speaker 4: and I think a lot of this is to set
Speaker 4: themselves up for an extension of the twenty seventeen tax
Speaker 4: cuts and possibly even a lower corporate tax rate. So
Speaker 4: once they've been able to demonstrate that there might be
Speaker 4: tteriff revenue or other income streams, then I think that
Speaker 4: we'll still see some pivots, but they might not be
Speaker 4: as frequent.
Speaker 2: Do you think the tax cuts are priced in fully
Speaker 2: right now?
Speaker 4: Like?
Speaker 2: Is that the expectation the market has.
Speaker 4: I think an extension of the twenty seventeen tax cuts
Speaker 4: are priced in. However, I don't know that we've fully
Speaker 4: priced in a corporate tax rate that would be lower
Speaker 4: than what it is today, and as we know, you know,
Speaker 4: that would be pretty agreedive to earnings. So I think
Speaker 4: that there are there is some upside if we actually
Speaker 4: see tax cuts a corporate tax rate cut.
Speaker 2: If we actually see a corporate tax rate cut. Are
Speaker 2: you optimistic? Are you pessimistic? Where do you fall in this?
Speaker 2: There's not a huge when it comes to Republicans in Congress.
Speaker 7: Yeah.
Speaker 4: Yeah, I think that it's pretty imminent that the twenty
Speaker 4: seventeen tax cut extension.
Speaker 3: Will go through.
Speaker 4: I think it's going to be a little bit more
Speaker 4: difficult to push through a corporate tax cut. I think
Speaker 4: that they're going to have to demonstrate that we're going
Speaker 4: to have tariff revenue or other cutbacks to actually be
Speaker 4: able to push it through.
Speaker 5: Is all of this going to create bottom line and
Speaker 5: economy in the United States that continues to grow and
Speaker 5: that maybe outperforms other developed markets.
Speaker 4: A corporate tax rate could the other, you know, the
Speaker 4: other initiatives. You know, if we possibly see less regulation
Speaker 4: that could be assisted. That could be a tailwind for
Speaker 4: some companies. But reality is, us businesses figure out how
Speaker 4: to make money in all types of environments, and if
Speaker 4: we've got a strong labor market, people are going to spend,
Speaker 4: and ultimately the economy is going to stay afloat.
Speaker 2: Do companies like companies have figured out ways to pay
Speaker 2: a lower effective tax rate? So is it really that
Speaker 2: big of a deal if the corporate tax rate is
Speaker 2: lowered because companies have done such a good job of
Speaker 2: figuring out how to pay less in taxes.
Speaker 3: Some have and some don't.
Speaker 4: Some aren't haven't been as effective, So there are companies
Speaker 4: that would benefit. You know, I know that a lot
Speaker 4: of the big tech companies have been in the headlines
Speaker 4: for the low amount of tax they pay, but that's
Speaker 4: not true across the board, so there would be some
Speaker 4: companies that benefit and therefore make it accretive to earnings,
Speaker 4: hey Brook.
Speaker 5: One of the things that our alex Steel just stressed
Speaker 5: and rightfully so, in our simulcast chat on the clothes,
Speaker 5: the equal weighted the S and P five hundred equal
Speaker 5: weighted index was just down about two tens of a
Speaker 5: percent today, you know, compared with what out one in
Speaker 5: one point one percent drop in the S and P
Speaker 5: five hundred, So it was a lot of those big
Speaker 5: cap tech names that really drag down the S and
Speaker 5: P five hundred. That equal weight just a little bit
Speaker 5: lower says what that difference says what to you?
Speaker 3: It's exciting to see broadening in the market.
Speaker 4: You know, the last two years, big tech specifically, you know,
Speaker 4: the mag seven has really been where the performances come from.
Speaker 4: We saw somewhat of a shift from twenty twenty three
Speaker 4: to twenty twenty four, and now we're seeing even a
Speaker 4: greater broadening today and that's what we want. That said,
Speaker 4: you know, we think that there's some opportunity right now
Speaker 4: in big tech, but on all mag seven companies are
Speaker 4: created equally. Today we had some negative news out of Nvidia,
Speaker 4: but systemically the company not much has changed. They're trading
Speaker 4: at twenty six times forward earnings, and when you look
Speaker 4: at their growth rate, it's actually less than their PE
Speaker 4: or it's higher than their PE ratio, which is the
Speaker 4: type of company you want to be invested in. However,
Speaker 4: you look at Tesla and it's trading at one hundred
Speaker 4: times forward earnings and the growth rate is really paltry
Speaker 4: relative to the PE. We're seeing slowing sales in China
Speaker 4: and Europe, and probably some slowing sales here in the US.
Speaker 4: So I don't think you can go in and just
Speaker 4: buy big tech in this environment.
Speaker 3: You have to be selected.
Speaker 4: But there are some opportunities out there in addition to
Speaker 4: looking at the broad market or equal weighted.
Speaker 2: All right, we're gonna have to leave it there, but
Speaker 2: we appreciate you taking the time. This afternoon, Brook May,
Speaker 2: managing partner in Evans May Wealth, joining us from Indiana
Speaker 2: one point three billion dollars in assets under management. Carol
Speaker 2: I found the Institute on Taxation and Economic Policy, nonpartisan institute.
Speaker 2: They found that America's largest consistently profitable corporation saw their
Speaker 2: effective tax rates fall from an average of twenty two
Speaker 2: percent to an average of twelve point eight percent after
Speaker 2: that Trump tax law went into effecting.
Speaker 5: Twenty eight two per cent tax rate.
Speaker 2: It's how much lower can it go for me?
Speaker 7: For that?
Speaker 1: For that, this has boom bark.
Speaker 2: Okay, remember we recently talked about this Bloomberg story. It
Speaker 2: was about Air France unveiling a redesigned first class cabin
Speaker 2: dubbed Lerenia, seeking to attract well heeled customers with travel
Speaker 2: experience that it says is actually kind of similar to
Speaker 2: stepping into a private jet.
Speaker 5: We'll see what our next guest has to say the
Speaker 5: new cabins, I just want to lay it out for everybody.
Speaker 5: Just remind you each of the four enclosed suites feature
Speaker 5: three and a half square meters of private space with
Speaker 5: a seat and a chase chaz that converts into full
Speaker 5: length bed. The cabin took about three years to develop.
Speaker 5: It's about a quarter more spacious than the previous iteration.
Speaker 2: I think it's a ten k round trip ten k.
Speaker 5: Yeah, not inexpensive, but not.
Speaker 2: Private jet level, all right, very very far from private jet.
Speaker 5: So let's see what Andrew Collins has to say. He's
Speaker 5: president and CEO of Sentient Gent back here in our
Speaker 5: Bloomberg Interactive Broker studio. Good to have you here. It
Speaker 5: feels like everybody's chasing what you guys are doing. How
Speaker 5: are you.
Speaker 7: I'm great and it's great to be back.
Speaker 3: Thanks, it's nice to have you here.
Speaker 5: My understanding, we got to talk to you as we
Speaker 5: were kind of busy, frantically working ahead of talking to you.
Speaker 5: You've been busy too. Tell us what your world is
Speaker 5: like right now.
Speaker 7: I'm on the road a lot private aviation, as you remember,
Speaker 7: had the boon in COVID and it really hasn't slowed down.
Speaker 7: And so for Sension, we're seeing about fifteen percent year
Speaker 7: over year growth right now and the forward bookings are
Speaker 7: actually encouraging. So you know, I know there's kind of
Speaker 7: a lot of pausing in the markets right now and
Speaker 7: people scratching their head a little bit. But from a
Speaker 7: travel perspective, I'm really not seeing a lot of leakage.
Speaker 2: Why did you have to Why do you have to
Speaker 2: travel so much?
Speaker 7: So we have offices all over the world, So we
Speaker 7: have headquarters in Cleveland, Ohio, in Boston here in the
Speaker 7: City and then we have offices in Mayfair. We have
Speaker 7: a large operating center out in Farmborough in the UK,
Speaker 7: maintenance in Milan, so we're all over the world.
Speaker 2: But when you're traveling, I mean you're not selling the product.
Speaker 7: So I'm always selling the product.
Speaker 2: What does that mean though, I mean it's the jet card.
Speaker 2: You guys are known for the jet card, Yeah, which
Speaker 2: is unique offering in a space. Right, you know you're
Speaker 2: the same parent company as Flexjet, which also offers a
Speaker 2: different type of product.
Speaker 1: Absolutely, yeah, but how do you like explain.
Speaker 2: How the business model sort of complements that.
Speaker 7: Yeah, so there's two differences, right. Flexjet is probably the
Speaker 7: premier private aviation company and the globe, and it's got
Speaker 7: a fleet of three hundred aircraft and some of the
Speaker 7: newest aircraft. Senchin has just surpassed its twenty fifth anniversary.
Speaker 7: Invented the jet card and it's an asset light model,
Speaker 7: so it leverages pre screened operators around the globe for
Speaker 7: usage of their aircraft. So we have technology that harnesses
Speaker 7: and schedules aircraft all over the world and it allows
Speaker 7: for a different type of way to fly an entry point.
Speaker 2: Are you ever paying Flexjet to operate for your customers.
Speaker 7: There are some non core fleet aircraft that occasionally we
Speaker 7: do leverage, but most of the time we're using more
Speaker 7: of a Part one thirty five operator in the United
Speaker 7: States or in Europe.
Speaker 2: So this would be like a small fleet based somewhere.
Speaker 2: It could be yeah, exactly, that has passed your certification
Speaker 2: correct and you're essentially paying them to then take your
Speaker 2: customers correct.
Speaker 7: We handle and so it's interesting when you mentioned commercial
Speaker 7: private aviation is all about that consumer promise and that
Speaker 7: service level. So it's kind of like curb detail and
Speaker 7: so yes, you might be able to replicate in cabin experiences,
Speaker 7: but outside the cabin, getting through like a commercial hub
Speaker 7: or something like that is very different than you know,
Speaker 7: pulling right up to a tail and getting on a
Speaker 7: private aircraft. You really can't emulate that experience. And so
Speaker 7: it is it is, you know, interesting in that regard.
Speaker 7: But yeah, we're selling sort of time manipulation at the
Speaker 7: end of the day, right A jet card allows you
Speaker 7: to everybody runs off the same watch, but it allows
Speaker 7: you privately to manipulate the time.
Speaker 5: What's the most difficult part of your business right now?
Speaker 7: Now? I think I think the most difficult part of
Speaker 7: our business is we set a really high bar for
Speaker 7: our consumer standard. So it's the service level, it's the
Speaker 7: you know, getting everything right, having all the levers in
Speaker 7: the row right and making sure you need technology, you
Speaker 7: need the people, and truth be told, you really need
Speaker 7: the experience. We have a deep bench of experience, some
Speaker 7: people that have been here since the beginning with the model.
Speaker 7: So I think that the consumer, especially because it's gotten
Speaker 7: more popular, has also a very high expectation, especially because
Speaker 7: of the price point. So you've got to deliver, and
Speaker 7: if we don't actually own that asset, we've got to
Speaker 7: make sure that we're delivering on that service level and
Speaker 7: tying that asset to the consumer.
Speaker 2: Promise safety in this environment because over the last few
Speaker 2: months there have been a space of these high profile
Speaker 2: air travel incidents in North America. They've got the public concerns,
Speaker 2: some happening with commercial airlines, but several happening with private airlines,
Speaker 2: including a real tragedy in Arizona and then this close
Speaker 2: near miss in Chicago with Southwest and a flex jet jet.
Speaker 2: How do you look at incidents like that and how
Speaker 2: do you make sure that the product you provide is safe.
Speaker 7: So I know our product is safe. We invest millions
Speaker 7: of dollars in safety. We have a chief safety Officer,
Speaker 7: independent Safety Advisory Board, we have an SMS that's a
Speaker 7: safety management system for those that don't know what that is.
Speaker 7: That's very advanced with the FAA. And so at the
Speaker 7: end of the day a lot of times and the
Speaker 7: report is just kind of being worked through in that
Speaker 7: particular regard in that incident.
Speaker 3: Yeah, it's all about like a.
Speaker 7: Lot of factors, right, So there's the factors we can control,
Speaker 7: and then there's the factors around you. So in that case,
Speaker 7: you're going to find that it's likely that there's some
Speaker 7: airport things that are happening. There's some some glaring and
Speaker 7: some things like that. It's not as obvious as one thinks,
Speaker 7: but I will tell you that we are. You know,
Speaker 7: we have an incredible safety record and we invest heavily
Speaker 7: in it. And I've always been impressed with what we
Speaker 7: do and how we respond and how we react to things,
Speaker 7: and we open our doors up to anybody in that regard.
Speaker 7: I will tell you that everybody talks of a good
Speaker 7: game about safety in aviation, but you really have to
Speaker 7: put your money where your mouth is. It is a
Speaker 7: big investment, it's a big expense, and it's not something
Speaker 7: you would ever shortcut.
Speaker 3: Andrew, how do you make.
Speaker 5: Sense of kind of the environment we are? You know,
Speaker 5: we use words like potentially recession and volatility and uncertainty,
Speaker 5: and you know, the kind of world breaking apart in
Speaker 5: new pieces. How would you describe it from what you see,
Speaker 5: especially as you travel around the world and have global customers.
Speaker 7: So it's interesting. In the States, I see still the
Speaker 7: robust demand. Like I said that, we're seeing the growth
Speaker 7: when we see a slow down, and we've seen pockets
Speaker 7: of it over the years for moments and pauses like
Speaker 7: the beginning of COVID and things like that. You tend
Speaker 7: to see a shift in your customer base, so you
Speaker 7: might lose some volume, but you generally tend to have
Speaker 7: pretty decent flying throughout. We saw it in the financial crisis.
Speaker 7: We actually maintained a whole different segment that flew, so
Speaker 7: there's a resiliency to it. Additionally, our customer base tends
Speaker 7: to get impacted, but impacted different than say somebody on
Speaker 7: you know, your typical main street, So I think we're
Speaker 7: seeing you know enough, flying in Europe, I see a
Speaker 7: little softness, to be honest with you. Interesting, and you know,
Speaker 7: we're doing a lot of investing and a lot of
Speaker 7: building over there, so we're almost counter in some of
Speaker 7: the regards that other people are kind of looking at
Speaker 7: it differently. We're blowing ahead with investments and an investment
Speaker 7: strategy over there.
Speaker 5: Twenty seconds.
Speaker 3: Why Europe?
Speaker 7: Why Europe because outside of the United States, the European
Speaker 7: Union is the second biggest private aviation market.
Speaker 5: Sorry I cut you off.
Speaker 2: Remind us how much the jet card is per hour.
Speaker 7: Jet card average jet card is about two hundred and
Speaker 7: fifty thousand dollars for twenty five hours, and it can
Speaker 7: be a little lower on a light jet. It can
Speaker 7: be significantly higher in a large cabin. So ten thousand
Speaker 7: an hour, give or take.
Speaker 5: Yeah, give or take. Cool stuff. Andrew Collins, President and
Speaker 5: chief executive officer of sent Jet, joining us right here
Speaker 5: in studio. You are listening and watching Bloomberg Business Week
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