10+ hours of podcasts, in 5 minutes.
5 quotes from 1 episode on Founders Podcast, each with a timestamped link to the source.
Kenn Ricci calls corporate mergers a sign of weakness and an admission that operators cannot build capabilities internally. Warren Buffett's $750 million purchase of NetJets serves as a rare transaction that legitimized an entire industry for skeptical banks.
Richard Santulli created fractional aircraft ownership because corporate airplanes fly 300 hours annually despite being built for 1,200 hours.
“Rick Santulli, brilliant, realized that the average company flies an airplane 300 hours a year. A plane wants to fly 1,200 hours a year. So, why don't we get four people to share them?”
From Kenn Ricci Built Flight Options on Warren Buffett's Validation
Customers saw the fractional flight model as a great bargain and mailed Kenn Ricci payments before receiving formal contracts.
“People thought it was such a great bargain that they would send me a check…”
From Kenn Ricci Built Flight Options on Warren Buffett's Validation
Buying another company shows a lack of capability, according to Kenn Ricci. Internal teams can build the required capabilities 90% of the time.
“I hate them for me because for me I think they're a sign of weakness because you can't build your business on your own…”
Warren Buffett purchased NetJets for $750 million in 1998, instantly validating the fractional ownership model. Lenders like Boeing Capital and Fleet Bank then provided Kenn Ricci with lines of credit in increments of $50 million.
“In June of 1998, Warren Buffett buys NetJets for $750 million and he christens the industry, and I just happened to be the guy who saw the banks last…”
From Kenn Ricci Built Flight Options on Warren Buffett's Validation
“Bombardier Capital, Boeing Capital, Fleet Bank, all 50 million here, 50 million there gave me these lines of credit that allowed me to buy the initial fleet, which I went active October 13th, 1998.”
From Kenn Ricci Built Flight Options on Warren Buffett's Validation
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