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Detroit automakers give up private jets

Posted Jun 19 2009, 01:07 PM by Kim Peterson
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Remember when the chief executives for Detroit's automakers flew in private jets to ask Washington for $25 billion in taxpayer money? Those were the days.

Private planes are now history for General Motors (GMGMQ). A bankruptcy judge is allowing the company to end its leases for all seven of its corporate jets and hangar space at a Detroit airport, The Washington Post reports. Now, company execs will have to -- gasp -- fly commercial.

"We're all flying Delta," a company spokesman said. In a court filing, GM said that those airplane leases "are not necessary or valuable" to its business activities.

In a more honest assessment of the situation, GM spokesman Tom Wilkinson said "the use of private jets was a political hot potato." You mean a company in bankruptcy doesn't need seven luxury planes?

Chrysler has also dumped its planes, and Ford (F) is trying to sell its five jets, the Post reports.

Related reading:

Big Three CEOs stage a PR comeback?

Come on, is driving to Capitol Hill really necessary?

Obama squashes Citigroup's $50 million luxury jet

 


Comments

 

This is good for them.  When they get back to financial stability they can get new toys.  Hopefully not too many or they'll be right back where they started.  If you live in Michigan, stay proud.  We still have a beautiful state.  We'll get back to the top again!!  Sooner, or later.  

They would have given them up a lot sooner if GM and the UAW had built them.

In many cases the planes save money. Most assembly plants are in low cost locations, ie., smaller cities are that are more expensive to fly to. New Vehicle launches require teams of engineers to go to these smaller cities on a regular basis to ensure quality launches. When I was an engineer at Ford the Launch team flew on the corp planes (turboproprs - not jets) to get to these obscure cities on a regular basis to resolve pre-production issues.  This actually saved the company money vs commercial flights (to expensive small towns) for a team of 60+ engineers. These plans were by no means luxury craft, they were turbo props (not jets) and they flew lower so they had a lot of turbulance (never a smooth flight but you got use to it) but it was cheaper and much more efficient.

This is good news.  But I bet they are only flying first class on Delta.  Here's a great idea.  Since they used billions of tax payer's dollars; make them fly coach.  You know the seats, the seats where the flight attendants don't even look at you.  No free drink, no little bag of peanuts (well actually not even peanuts anymore, more like bite sized ritz crackers).

if i am paying (as a taxpayer) a guy  to run a multiBillion dollar company i dont want to see him in a stupid security line at an airport taking his shoes off and getting "strip searched". i want him to be able to get to where he needs to be ASAP. Granted it sems luxuriuos but you try working 18 hour days then sit next to a sick person who throws up on your request for 25 billion dollars. Try telling Barney Frank that you are sorry you were late because some idiot at the airlines thought you were a terrorist or the plane was late or the flight was cancelled due to lack of interest. You dont get it!!  

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