Craft Pod generates returns for investors from three main sources: ongoing charter income, asset appreciation, and tax benefits. All three combined provide your total economic benefit (plus, of course, the personal value of using the aircraft).
Charter Income: When you’re not using the planes, we charter them out to third parties. That rental income flows back into the Pod and ultimately to you. It provides regular cash flow that helps cover costs and can contribute to profits.
Appreciation: Over the 5-year term, the assets can maintain or increase in value. We aim to buy smart and manage the planes to preserve value. If the jets appreciate (or even if they simply depreciate slower than expected), that gain is realized when we sell at the end of the term. Any increase in value of other invested assets (like stocks held in the Pod) also adds to returns.
Tax Benefits: As an owner, the Pod can take advantage of tax rules like accelerated depreciation on aircraft. This can create paper losses or deductions that benefit you (for example, offsetting the charter income). Also, by contributing stock, you deferred capital gains tax initially. These tax efficiencies improve your net return – you keep more of the income and gains because taxes are reduced or postponed.
In summary, returns aren’t just coming from one place. You get a blend of operating income, potential upside from asset sales, and tax-driven enhancements to your profit. And all along, you’re also getting the utility of flying private without paying charter rates, which is a kind of return in itself.