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    Flying is cheaper in 2024. But not for some destinations

    Airline fares from the U.S. have broadly fallen over the past year, according to the consumer price index.
    But there are still cities and regions where average prices have gotten more expensive, like flights to Tokyo, Canada, South America, and the Middle East and Africa.
    Consider being more flexible with travel plans and book well ahead to reduce spending on airfare. Avoiding checked-bag fees is another way to save.

    Coroimage | Moment | Getty Images

    Americans traveling this summer have broadly seen prices fall for airline fares, a welcome trend after last year’s sticker shock.
    But airfare remains more expensive in 2024 for some regions and destinations, largely for trips abroad, data shows.

    For example, an average round-trip flight to Tokyo, Japan — one of the top hot spots for American tourists — costs $1,372 this summer, up 2% from 2023, according to travel site Hopper.
    Flights to Canada, South America, and the Middle East and Africa regions are also up 6%, 2% and 1%, respectively, from summer 2023, Hopper found.
    Of course, there’s significant variation among the cities and countries of such vast regions and continents.
    More from Personal Finance:Some vacationers expect to carry summer travel debtA controversial hack to save on airfare carries ‘super big risk’New Europe travel requirement delayed to 2025
    For example, while the price of a round-trip fare to Asia is flat from a year ago, those for certain destinations have soared: by 65% (to $3,196) for an average flight to Sakata, a coastal city in the northeast of Japan; by 42% (to $4,190) to Ipoh, among Malaysia’s biggest cities; and by 35% (to $4,092) to Udon Thani, in Thailand’s northeast, according to Hopper.

    High prices to certain Asian cities impact many American tourists since the continent is their second-most frequented international travel destination, Hopper said.
    Flights are also up for some major hubs in South America, according to Hopper: by 16% (to $955) to Rio de Janeiro, Brazil; by 34% (to $667) to Lima, Peru; and by 13% (to $826) to Santiago, Chile, for example.
    Average fares to Europe, the most popular trip abroad for Americans, are down 8% in summer 2024 versus a year ago, when they were at record highs. But they’re still elevated in some areas like Friedrichshafen and Memmingen, in southern Germany, and Bratislava, Slovakia. Fares there are up 265%, 109% and 99%, respectively.

    Travel prices have fallen broadly

    Westend61 | Westend61 | Getty Images

    “Last year was kind of an extraordinarily expensive year,” said Hayley Berg, lead economist at Hopper.
    International travel was especially costly as consumers unleashed pent-up demand to go abroad following Covid-19-related restrictions, many nations reopened their borders to foreign visitors, airlines worked to re-establish their flight schedules and jet fuel prices soared.  
    Some of those dynamics haven’t yet unwound for certain areas. Additionally, specific destinations have their own idiosyncratic supply-and-demand factors that have kept prices high.
    Overall, though, travelers have gotten broad price relief.
    Average airline fares for flights originating in the U.S. fell by 5.8% in the year from April 2023 to April 2024, according to the consumer price index. They’ve declined almost 1% in just the past month.

    “Mostly what we’re seeing [now] is tremendous improvement across most routes,” Berg said. “I do expect that to continue.”
    However, Americans may feel flight prices are broadly increasing due to certain airline trends like higher fees for checked bags, said Sally French, a travel expert at NerdWallet.
    Major carriers including Alaska Airlines, American Airlines, Delta Air Lines, JetBlue Airways and United Airlines raised their checked-bag fees this year, for example.

    While those fee hikes are generally $5 more per bag, that can add up, especially for round-trip fares for families, French said.
    “It can completely inflate the cost of your trip,” she said.
    There are ways to save, though, such as flying with certain airlines, combining bags, or even trying to forgo checking a bag altogether. If you know you’ll have to check a bag, doing so ahead of flight check-in will likely save you money, too.
    Booking a flight well ahead — at least one to three months before a domestic trip, and three to four months ahead of international travel — is another way to save on flight costs, French said. Airlines generally don’t reduce airfare at the last minute, unlike many hotels, for example, she said.
    Other ways to save include being flexible with travel time — perhaps by visiting a destination during a shoulder season instead of its peak, or flying mid-week instead of around weekends. Don’t forget to use rewards like frequent-flier miles and certain perks like travel insurance offered by some credit cards. More

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    No ‘cop on the beat’: Why the SEC may deny new ether ETFs this month

    The U.S. Securities and Exchange Commission is expected to make a key decision on approving ether exchange-traded funds next week.
    But it will likely fail due to a lack of an over-arching regulatory framework for all cryptocurrencies, according to Ric Edelman, head of the Digital Assets Council of Financial Professionals.

    “I think that there’s going to be another delay, which is frankly, not really bad news,” Edelman told CNBC’s “ETF Edge” this week.
    Edelman, an investor and personal finance author, thinks there needs to be an emphasis on regulations to protect people from crypto scams. He notes current laws are more than a half century old and are not built for digital technology.
    “Without any cop on the beat, it’s forcing investors to go on their own outside of the investment advisory community because the community can’t help them because we don’t know what the rules are. And they’re ending up in scams and frauds,” he said. “The sad irony is that [SEC Chair Gary] Gensler is claiming to be wanting to protect the consumer. But his refusal to write regulation is actually harming the consumer rather than helping.”
    Bitwise Asset Management’s Matt Hougan is also pushing for new rules.
    “80-year-old securities laws don’t fit neatly into this world of digital assets, crypto and 21st century technology,” the firm’s chief investment officer said. “Ultimately, I think everyone wants the same thing. They wanted a safe, secure platform where investors are protected, and innovation is protected.”

    Hougan notes Bitwise has its own application for a spot ethereum ETF and is hopeful about the future.
    “We’ve entered the ETF era for crypto. We’ve seen the bitcoin ETFs come to market. We’ve seen the great things they’ve done for investors — lowering costs, improving regulation, improving sort of safety, security and peace of mind.,” Hougan said. “I think we will get there on ethereum as well.”
    The two ether ETF proposals, submitted by VanEck and ARK Investments/21Shares, are set to be approved or denied this month.
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    Media giants lean on sports as Hollywood strikes still loom over content slates

    Media giants wooed advertisers with star-studded Upfront presentations this year after the end of the Hollywood strikes — but the hangover from the work pause last year showed in content slates.
    Sports once again stole the show, from legacy media giants emphasizing the NBA and Summer Olympics, to Netflix’s announcement it will host two NFL games on Christmas Day.
    Companies are still focused on streaming, and tech giants that now offer ad-supported platforms touted robust upcoming slates.

    Brock Purdy #13 of the San Francisco 49ers prepares to take a snap in the first quarter against the Kansas City Chiefs0 during Super Bowl LVIII at Allegiant Stadium on February 11, 2024 in Las Vegas, Nevada. 
    Michael Reaves | Getty Images

    Media giants relied on sports last year when they had to woo advertisers during the Upfronts meeting week at a time when a Hollywood strike and cost cutting bit into their content and star power.
    This year, while stars once again graced the stages following the end of the strikes, the presentations still leaned more on sports than scripted shows.

    The hangover from last year’s work pause meant some media companies had fewer series and movies to highlight during their presentations. Cost cutting from companies including Disney and Warner Bros. Discovery didn’t help matters.
    Live sports remained the darling of the Upfront meetings, as it still beckons the biggest audiences, and, therefore, the most advertising dollars.
    “I think [the companies] benefited in terms of earnings during the strike. And I think there was hesitance to ramp up because of all the issues of trying to understand how content expenditure was really driving return,” said Tom Rogers, Oorbit Gaming and Entertainment executive chairman and former NBC Cable president.
    “There used to be this kind of automatic, where you put out a certain amount of programs for the new season and it was relatively formulaic without much sense of being able to understand how content drove profitability,” he added.
    He noted two key issues for the traditional media companies: the decline of traditional TV and the increasing fees companies have to pay to air live sports.

    “If you’re going to maintain a reduced level of content spending, by definition, that means your entertainment programming has to be reduced,” Rogers said.

    Light on entertainment

    A scene from Marvel’s Daredevil season 3 on Netflix 
    Source: Netflix

    Disney played up trailers for the upcoming Disney+ series “Agatha All Along” and “Daredevil: Born Again,” but for its cable network FX, only highlighted the next season of the popular series “The Bear,” which also streams on Hulu. The company also announced the “Golden Bachelorette,” the next installment in the popular reality series on broadcast network ABC.
    Warner Bros. Discovery put series like “House of the Dragon” and “And Just Like That” — both spinoffs of HBO series — front and center.
    “A strong content slate — be it sports or entertainment — is only one piece of the puzzle, however,” said Amy Leifer, chief advertising sales officer at DIRECTV Advertising. “With the explosive growth of [ad-supported streaming], the modern TV experience is as dependent on content as it is on the ads that support it.”
    Some films played a big role in the Upfronts, especially after streaming services like NBCUniversal’s Peacock got a boost from blockbusters like “Oppenheimer” recently.
    Comcast’s NBCUniversal focused on the upcoming musical film “Wicked,” and the renewal of some Peacock original series.

    The summer movie box-office season, which runs from the first weekend in May though Labor Day, is expected to shrink around $800 million this year as the season brings a limited and unsteady stream of blockbuster films. It follows a second quarter that lagged nearly 50% behind ticket sales seen during the same period last year.
    The movie calendar is expected to ramp up in the fourth quarter, with major titles like Warner Bros.’ “Joker: Folie a Deux,” Paramount’s “Gladiator II,” Disney Animation’s “Moana 2” and Universal’s “Wicked” arriving in cinemas. Calendar 2025 and 2026 are slated to have a significant boost in titles, including features from major franchises like Marvel, Star Wars, Batman, Super Mario Bros. and rollover tickets from a third Avatar film.
    Meanwhile, tech giants like Netflix and Amazon Prime Video that recently added cheaper, ad-supported tiers to their streaming platforms entered Upfronts week in full force, showcasing not only sports but also upcoming films and series.
    Amazon, which now owns MGM Studios, noted the renewals and upcoming seasons of original series such as “Mr. and Mrs. Smith,” “The Boys,” and “The Summer I Turned Pretty.” Actor Jake Gyllenhaal announced a sequel to “Roadhouse,” and Will Ferrell and Reese Witherspoon discussed their film, “You’re Cordially Invited.”
    Netflix, meanwhile, announced the sequel to Adam Sandler’s “Happy Gilmore,” as well as a slate of other series.

    Sports domination

    The Olympic Rings being placed in front of the Eiffel Tower in celebration of the French capital won the hosting right for the 2024 Summer Olympics.
    Sopa Images | Lightrocket | Getty Images

    The NFL once again reigned supreme at most Upfront presentations this year.
    Tentpole sports programming from the Summer Olympics to the NBA — which beckon the biggest TV and streaming audiences, and vast amounts of advertising dollars — were also key parts of the presentations.
    “We often hear from top clients that the significance of upfront buying has diminished outside of securing placements in live sports,” said Mike Dupree, chief revenue officer at Teads, a global premium publishing platform. “Access to quality content in an on-demand world has reduced the scarcity that historically drove the upfront model. Live sports seems to be the last bastion, as proven through rights renegotiations.”
    NBCUniversal dedicated much of its presentation on the upcoming Summer Olympics in Paris. The NFL played a role in all presentations, including for the newcomer to the ad-supported streaming landscape, Netflix. It made perhaps the biggest sports splash during Upfronts week, when it was announced hours before its presentation that it reached a deal to air NFL games on Christmas Day over the next three years.
    Amazon showcased Thursday Night Football, its second Black Friday game, and an upcoming wild card playoff game in January — the first ever for Prime.
    “This year, we saw media giants banking on big bets like “Wicked,” the Olympics, and sports superstars like Jason Kelce to generate buzz,” said Tim Hurd, vice president of media activation at digital marketing agency Goodway Group. “There was a lot of excitement around the evolving live sports landscape and leveraging college sports, NFL games, and the Olympics as an omni-platform experience.”
    Kelce, who recently retired from the NFL after 13 years with the Philadelphia Eagles, appeared at Disney’s upfront to announce he would be a commentator for ESPN beginning this season. His appearance made headlines — as he and brother Travis Kelce are prone to doing — when he picked up “Abbott Elementary” star and creator Quinta Brunson during the event.
    — Sarah Whitten contributed to this article.
    Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

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    Mercedes-Benz workers in Alabama vote against UAW union membership

    Mercedes-Benz workers in Alabama have voted against union representation by the United Auto Workers, the National Labor Relations Board said Friday.
    The results are a blow to the UAW’s organizing efforts a month after the Detroit union won an organizing drive of roughly 4,330 Volkswagen plant workers in Tennessee.
    The Mercedes-Benz vote was expected to be more challenging for the union than the Volkswagen plant, where the union had already established a presence after two failed organizing drives in the past decade.

    United Auto Workers (UAW) members and supporters on a picket line outside the ZF Chassis Systems plant in Tuscaloosa, Alabama, US, on Wednesday, Sept. 20, 2023.
    Andi Rice | Bloomberg | Getty Images

    Mercedes-Benz workers in Alabama have voted against union representation by the United Auto Workers, the National Labor Relations Board said Friday.
    The results are a blow to the UAW’s organizing efforts a month after the Detroit union won an organizing drive of roughly 4,330 Volkswagen plant workers in Tennessee. Voting started Monday and ended Friday.

    Union organizing failed with 56% of the vote, or 2,642 workers, casting ballots against the UAW, according to the NLRB, which oversaw the election. More than 90% of the 5,075 eligible Mercedes-Benz workers voted in the election, according to the results.
    The NLRB said 51 ballots were challenged and not counted, but they aren’t determinative to the outcome of the election. There were five void ballots. 
    The union and company have five business days to file objections to the election, including any alleged interference, according to the NLRB. If no objections are filed, the election result will be certified, and the union will have to wait one year to file for a union election for a similar bargaining unit.
    Mercedes-Benz in a statement said company officials “look forward to continuing to work directly with our Team Members to ensure [Mercedes-Benz US International] is not only their employer of choice, but a place they would recommend to friends and family.”

    United Auto Workers President Shawn Fain (right) and UAW Secretary-Treasurer Margaret Mock (left) lead a march outside Stellantis’ Ram 1500 plant in Sterling Heights, Michigan after the union called a strike at the plant on Oct. 23, 2023.
    Michael Wayland / CNBC

    The loss is expected to hurt the UAW in an unprecedented organizing drive launched late last year of 13 non-union automakers in the U.S. after securing record contracts with Detroit automakers Ford Motor, General Motors and Stellantis. Those agreements included significant wage increase, reinstatement of cost-of-living adjustments and other benefits.

    UAW President Shawn Fain said while the Mercedes-Benz vote was obviously not the result the union wanted, it was a valiant effort, adding the vote “isn’t a failure” but a “bump in the road.”
    “While this loss stings, I’ll tell you this, we’re going to keep our heads up, keep our heads up high. These workers have nothing to do but be proud in the effort they put forth and what they’ve done,” he said Friday during a media conference. “We fought the good fight and we’re going to continue on, continue forward. Ultimately, these workers here are going to win.”
    The Mercedes-Benz vote was expected to be more challenging for the union than the Volkswagen plant in Tennessee, where the union had already established a presence after two failed organizing drives in the past decade and where it faced less opposition from the automaker.
    Stephen Silvia, author of “The UAW’s Southern Gamble: Organizing Workers at Foreign-Owned Vehicle Plants,” noted Mercedes-Benz replaced the plant’s leader weeks ahead of the election. He said companies routinely do this, promising workers changes at their facilities in an effort to stave of organizing.
    “Companies do anti-union campaigns because they can be effective, and I think this one was effective,” said Silvia, a professor at American University in Washington, D.C. “A common piece of an anti-union campaign is firing the plant manager … That seems to have persuaded enough of the workers to vote against the union.”

    Alabama Gov. Kay Ivey, who was one of six Republican governors to condemn the union’s organizing drive, hailed the outcome of the vote.
    “The workers in Vance have spoken, and they have spoken clearly! Alabama is not Michigan, and we are not the Sweet Home to the UAW. We urge the UAW to respect the results of this secret ballot election,” she said.
    Workers at Mercedes-Benz’s Tuscaloosa plant, located about 60 miles southwest of Birmingham, have produced more than 4 million vehicles since the plant opened in 1997, including 295,000 vehicles in 2023, according to the plant’s website.
    The Alabama plant currently produces vehicles such as the gas-powered GLE and GLS Maybach SUVs as well as the all-electric EQS and EQE SUVs.
    The NLRB last week said it continues to process and investigate open unfair labor practice charges filed by the UAW against automakers, including six unfair labor practice charges against Mercedes-Benz since March.
    Fain said Friday the union would continue to move forward with those charges. He declined to say whether the union plans to challenge the election results, saying he’d “leave that” to the union’s legal team.
    The charges allege that Mercedes-Benz has “disciplined employees for discussing unionization at work, prohibited distribution of union materials and paraphernalia, surveilled employees, discharged union supporters, forced employees to attend captive audience meetings, and made statements suggesting that union activity is futile,” the NLRB said.
    The union has filed other charges against automakers Honda, Hyundai, Lucid, Rivian, Tesla and Toyota, according to the NLRB. More

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    Frontier Airlines does away with change fees in budget airline pricing overhaul

    Frontier Airlines will stop charging to change or cancel a flight, with the fee currently around $99 within a week of departure.
    The budget airline is changing its pricing model to bundle perks it long sold a la carte.
    The changes come amid stricter rules from the Biden administration on so-called “junk fees.”

    A Frontier Airlines plane lands at the McCarran International Airport in Las Vegas on Feb. 27, 2020.
    Elizabeth Page Brumley | Tribune News Service | Getty Images

    Frontier Airlines said it will stop charging customers a fee to change their flights, taking a page from larger competitors as the Biden administration issues stricter rules targeting so-called “junk fees.”
    The change is part of an overhaul announced on Friday of the budget airline’s longtime pricing model, which brings customers in the door with eye-catching low base fares but charges a fee for everything else such as seating assignments and carry-on baggage. That model is shared by fellow discounter Spirit Airlines.

    Frontier said it will start offering packages that include some of those add-ons, among others, such as early boarding. While some fares will still allow travelers to add on options a la carte, “we expect that option to be a minority of customers,” Frontier CEO Barry Biffle told CNBC.
    A new “economy” bundle that comes with a carry-on and a seat assignment will start at $30 more than a basic fare, while a “premium” bundle that offers those perks plus earlier boarding will be $50 more than the basic fare. For at least $100 more than a basic fare, “business” bundle travelers will also be able to check two bags and get a seat at the front of the plane with more room.
    Last month, the U.S. Department of Transportation issued a final rule that requires airlines to tell customers about fees, including those for checked or carry-on baggage, up front, a change the DOT said would save travelers more than half a billion dollars a year.
    Frontier currently charges up to $99 to change flights if the change is made within a week of the trip, according to the airline’s website. Larger rivals Delta, American and United scrapped change fees during the Covid-19 pandemic for travelers who were booked in standard economy class and above. Southwest Airlines does not charge customers to change their tickets.
    “The truth is the big four [U.S. airlines] all have no change fees on the majority of their products, so we were not as desirable,” Biffle said. He said change fees were a “top complaint” of travelers. Travelers who buy the cheapest option on Frontier will still have to pay to change their flights.
    Frontier also said flight credits would be valid for 12 months, up from three months, starting with tickets issued on Friday, and that it will reintroduce live phone support for travelers flying within 24 hours or to elite members of its frequent flyer program.

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    Dodge and Ram boss Tim Kuniskis, father of the Hellcat, to retire from Stellantis

    Stellantis’ Dodge and Ram brands CEO Tim Kuniskis is retiring after a nearly 32-year career with the automaker and its predecessors, the company announced Friday.
    Kuniskis is best known for leading Dodge for much of the last decade and being the so-called father of Dodge’s high-performance Hellcat models.
    Kuniskis will be replaced by Chrysler brand CEO Christine Feuell, who will also lead Ram, and Matt McAlear, who will be promoted from Dodge’s sales lead to brand CEO.

    Tim Kuniskis, head of Fiat Chrysler’s passenger cars division in North America, reveals the 2021 Dodge Durango SRT Hellcat SUV during an online event on July 2, 2020.
    Screenshot

    DETROIT – Stellantis’ Dodge and Ram brands CEO Tim Kuniskis is retiring after a nearly 32-year career with the automaker and its predecessors, the company announced Friday.
    Kuniskis, who has led several of the carmaker’s brands in North America, is best known for leading Dodge for most of the last decade or so. He is considered the “father” of Dodge’s high-performance Hellcat models and “the unofficial spokesman” for American muscle cars.

    During his tenure, Dodge reestablished itself as a quintessential American muscle car brand. The brand did so with vehicles such as the more than 700 horsepower Challenger and Charger Hellcat models and controversial Challenger Demon drag race cars.
    Kuniskis will be replaced by Chrysler brand CEO Christine Feuell, who will lead Ram in addition to Chrysler, and Matt McAlear, who will be promoted from Dodge’s sales lead to brand CEO and a member of Stellantis’ top executive team. The appointments are effective June 1, the company said.

    2023 Dodge Challenger SRT Demon 170

    The changes come as Stellantis carries out a restructuring, including layoffs and cost cutting. It has struggled with U.S. sales, which declined 1.2% last year in a market that grew 12.3%. The company was the only major automaker to report a yearly decline, according to Motor intelligence data.
    “I want to take the opportunity to warmly thank Tim for his passion, commitment and contributions to Stellantis and in defining the vision of the future electrified Ram and Dodge brands. I wish him well in his retirement,” Stellantis CEO Carlos Tavares said in a release. “I am confident that Chris will continue the work of Tim in leading the iconic Ram brand. Matt will bring a fresh perspective, while continuing to draw on the heritage of our iconic Dodge brand and leading the transition of the brand toward a sustainable future.”
    While the company did not invest in all-new products for Dodge, Kuniskis, a salesperson and marketer, was able to grow awareness and sales of the brand’s Charger, Challenger and Durango vehicles over the years. Dodge often sparked interest by increasing V-8 engine performance or announcing new “buzz” models.

    Kuniskis has been a member of Stellantis’ top executive team since the company was established through a merger of Fiat Chrysler and French automaker PSA Groupe in January 2021. He also served on the top board for Fiat Chrysler, under late CEO Sergio Marchionne.
    Kuniskis’ departure is the latest in a string of changes to the company since the automaker was established. Recent changes have include a shuffle of Jeep’s top executives; North America head Mark Stewart leaving to become CEO of Goodyear Tire and Rubber Co.; and a shakeup late last year of the company’s international operations like the South America and Asia-Pacific regions, including China.

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    Boeing shareholders re-elect departing CEO Calhoun to board

    Boeing shareholders re-elected outgoing CEO Dave Calhoun to the company’s board, according to a preliminary vote tally.
    New board chair Steve Mollenkopf said he has sought feedback on Calhoun’s successor from investors and Boeing’s customers.
    Calhoun told shareholders that the company’s focus is on stabilizing its production and quality after a door plug blew out of an Alaska Airlines Boeing 737 Max 9 earlier this year.

    Boeing CEO Dave Calhoun speaks briefly with reporters as he arrives for a meeting at the office of Sen. Mark Warner (D-VA) on Capitol Hill January 24, 2024 in Washington, DC.
    Drew Angerer | Getty Images

    Boeing shareholders voted to re-elect the outgoing CEO Dave Calhoun to the board of directors, a preliminary tally on Friday showed, as he sought to reassure investors that the manufacturer is on the path to stability amid its latest safety crisis.
    Calhoun in March said he will step down by year’s end, months after a door plug panel blew out midflight from a Boeing 737 Max 9, ushering in new scrutiny of the manufacturer’s safety and quality control issues. Boeing also replaced its board chair and the head of its commercial airplane unit in the shakeup.

    Boeing’s new chairman, Steve Mollenkopf, told shareholders at the company’s annual meeting Friday that he has consulted with investors and customers on Calhoun’s successor. Proxy advisor Glass Lewis had recommended that shareholders vote against Calhoun and two other board members.
    Boeing’s latest problems have driven down deliveries of new aircraft, frustrating airline executives who have complained about having to change their flight schedules and scale back staffing. It has also further strained Boeing’s relationship with its regulator, the Federal Aviation Administration, which has ramped up inspections of the manufacturer.
    Earlier this week, the Justice Department said Boeing violated a 2021 settlement that protected the company from criminal charges tied to the two fatal 737 Max crashes, opening Boeing up to potential U.S. prosecution. More

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    ‘Quiet wealth’ takes on new meaning with super-private deals for mansions, art and classic cars

    Auction companies and luxury real estate brokers say wealthy buyers and sellers are increasingly turning to private sales and off-market listings.
    Last year, while combined public auction sales for Sotheby’s, Christie’s and Phillips fell by 19%, private sales increased by 4% at Sotheby’s and 5% at Christie’s.
    “Discretion today is key. People can buy without the whole world staring at them,” said Shelby Myers, global head of private sales for RM Sotheby’s.

    A 1960 Ferrari 400 Superamerica SWB Cabriolet by Pinin Farina, available via Sotheby’s Private Sales.
    Courtesy: RM Sotheby’s

    A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.
    The rich have taken “quiet wealth” to a new level, turning to private purchases of mansions, art and classic cars designed to avoid attention, according to experts.

    Auction companies and luxury real estate brokers say wealthy buyers and sellers are increasingly turning to private sales and off-market listings to avoid social media and prying eyes. While public auction sales are declining in the art world, private sales — done behind closed doors between discreet buyers and sellers — are growing.
    Last year, while combined public auction sales for Sotheby’s, Christie’s and Phillips fell by 19%, private sales increased by 4% at Sotheby’s and 5% at Christie’s, totaling $2.4 billion across the two auction houses. CNBC reported in February that Christie’s had sold a Mark Rothko painting for over $100 million to hedge-fund billionaire Ken Griffin, even as public auctions continued to decline.
    Classic cars are also seeing a shift to private sales, especially with the most expensive and rare models. RM Sotheby’s, the classic-car auction company, has sold trophy Ferraris, Porsches and other trophy cars by public auction for more than 30 years. But its newly formed RM Sotheby’s private sales division has seen its sales more than quadruple over the past four years, according to Shelby Myers, global head of private sales for RM Sotheby’s.
    Private sales, where cars are discreetly brokered between buyer and seller without an auction or public price, now account for nearly a third of revenue, he said.
    “We’ve definitely seen a trend where people want to transact privately,” Myers said. “Discretion today is key. People can buy without the whole world staring at them.”

    The rise in private sales for classic cars, art, real estate and other markets is being driven by social media, technology and cooling prices for collectibles. When a work of art or classic car comes up for auction, the results, and sometimes the seller, are highly public, spread over social media and blogs.
    Collectibles experts say sellers don’t want to risk putting a treasured item up for auction only to have it stumble publicly on the auction block.
    “It’s very public now when someone loses money on a sale, and no one wants that,” Myers said. “Up until a few years ago, you could buy a car at auction and the prices wouldn’t be splattered all over social media.”
    Collectors who like to show their cars at events and award shows are also shying away from auctions since viewers are more likely to be able to figure out how much the owner paid.
    “The car enthusiasts used to be a relatively small, tight-knit group,” Myers said. “Now when a major collector shows their car, it spreads like wildfire over blogs and the internet. And everyone can see who the owner is and what they paid.”
    In real estate, many of the biggest deals in Manhattan, Malibu, Aspen, the Hamptons and Palm Beach are now in private or “off-market” sales. Also known as “whisper” or “pocket” listings, off-market properties are not listed on multiple listing services or public websites but are shopped around quietly among a select group of brokers and buyers.
    A townhouse in Manhattan’s Greenwich Village sold this year in an off-market deal for $72.5 million, making it the most expensive townhouse ever sold downtown. A 13,000-square-foot mansion in Palm Beach sold off-market for $60 million, making it one the most expensive non-waterfront homes ever sold on the island. And Aspen’s first sale of over $100 million — Patrick Dovigi’s mansion on Red Mountain to billionaires Steve Wynn and Thomas Peterffy — was off-market, with the broker representing both the buyer and seller.  
    Los Angeles is considered the birthplace of off-market deals, starting in the 1980s and 1990s when celebrities and movie stars wanted to avoid overzealous fans visiting their listed homes.
    Over time, according to Douglas Elliman real estate agent Ernie Carswell in Los Angeles, wealthy, not but famous, sellers have joined in on the off-market craze.
    “Even the average multi-millionaire or billionaire likes the idea of selling without the media and privacy invasion,” Carswell said.
    Carswell said he currently has a billionaire client in New York who wants a special property in Los Angeles, so Carswell is looking at a mega-mansion owned by a Middle Eastern billionaire who is offering it only to select buyers. He’s also working on a deal in Palm Springs with a celebrity selling a home he didn’t want to be publicly shown to a billionaire buyer who doesn’t want any photos of his new home on the web.
    “They don’t want burglars to know how to get to the bedroom, or how much land there is or how to get through the hedges,” Carswell said. “I blame technology.”
    Carswell said off-market listings don’t make sense for properties under $5 million since they have a larger possible buying pool and benefit from broader marketing. But for special mega-homes in Malibu, Bel Air or Beverly Hills priced over $20 million, the list of potential buyers is smaller, and most are already known to the brokers, which makes an off-market agreement more appealing. 
    That makes broker relationships even more important — especially to the wealthy, Carswell said.
    “Never before has the need for a skilled, connected real estate professional been more valuable, especially at the high end,” he said.
    Still, some brokers say even for pricey properties, sellers who go private don’t get the highest price since they’re limiting their pool of potential buyers.
    “They’re leaving money on the table,” said real estate broker Noble Black of Douglas Elliman. “There is a valid reason for not listing, you want privacy and discretion. But you’re paying a premium for that.”
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