Luxury service gets enhanced by AI at private aviation charter firm

Craft Aviation is revolutionizing private air travel by blending investment opportunities with luxury flight access, creating a novel approach to aircraft ownership. Their innovative 721 exchange fund allows investors to contribute stock in exchange for partial ownership of private aircraft while deferring capital gains taxes. This model provides the benefits of private aviation without the typical maintenance and administrative burdens, while the company simultaneously implements AI to optimize fleet operations and sales processes.

The big picture: Craft has launched a groundbreaking 721 exchange fund that transforms private aviation into both an investment vehicle and a luxury service.

• Investors can contribute stock to the private fund in exchange for partial ownership of private aircraft, deferring capital gains taxes while gaining access to private flights.
• The arrangement provides the benefits of private jet ownership without the responsibilities of maintenance, licensing, insurance, and storage typically associated with aircraft ownership.

Key details: The aviation charter company maintains a fleet of high-end Bombardier business jets with plans for expansion.

• Craft’s current fleet consists of Bombardier Challenger 300 mid-size and Challenger 350 super mid-size business jets, each with a range exceeding 3,000 miles and capacity for nine passengers.
• The company plans to acquire Bombardier Global 5000 long-range business jets and Embraer Phenom 300 light business jets to expand their offerings.

AI implementation: Craft is leveraging artificial intelligence to optimize their operations and maximize the efficiency of their limited resources.

• The company has begun implementing AI in its sales process to analyze patterns in thousands of weekly flight requests and determine optimal usage of aircraft and crew.
• According to CEO Israel Slodowitz, AI helps identify “the best and most efficient flights to sell,” though humans remain involved in different aspects of the sales process.

Why this matters: The AI-powered optimization directly benefits investors by potentially increasing the value of their holdings.

• Slodowitz noted that using AI to improve fleet efficiency “will ultimately benefit members of the company’s exchange fund, through growth of their invested capital.”
• This approach represents innovation in an industry that has “historically been slower than other industries to innovate,” according to the CEO.

What they’re saying: Craft’s leadership sees their approach as addressing evolving investor preferences and market opportunities.

• “Investors are increasingly looking for new and exciting ways to diversify their portfolios. Craft’s exchange fund offers the perfect opportunity for diversification, and offers investors the unique benefit of access to private aircraft for their own use,” Slodowitz told Newsweek.
• He emphasized that Craft has “always seen tremendous potential to bring new ideas to the marketplace” in an industry often resistant to change.