Quote:
Originally Posted by TAG UR IT
I'd bet that had Wagoner flew coach to the Congressional meeting, none of that would have been brought up for GM...and they might still have their two jets.
Regardless, good move by GM. Not necessarily a move that is going to save the company entirely. But, a PR move that was necessary. CNN is making a big deal out of it. I think they need to make a big deal out of how much it is going to save GM.
Now....my question... CNN said "GM sold two of it's corporate LEASED jets." GM is "leasing" their jets??? UHhhhhmmmm....ok? Why would you lease a jet when it could simply be purchased... I honestly don't know the answer to that question. I think it would simply save them more money in the long run by purchasing them out right than by leasing them. Then, when congress asked about the jets, I'd reply..."Yes. I flew here on a GM private jet which was paid for, in full, over 8 years ago. This trip technically only cost xxxx dollars."...instead of 20,000 dollars. IMHO, big difference.
|
It is likely that they leased the jets for tax reasons. Owning assets like that requires depreciation and carries a bunch of other tax implications. Leasing probably gets them around that stuff and allows them to show it on the books as a business expense and write it off. Just my two cents.