General Motors getting rid of two corporate jets

[camaro5]

Much ado was made about the Big 3 CEOs choice of travel to Washington D.C. this week. Each one flew to our nation's capital in separate private jets, a fact that was mentioned by many politicians during two days of testimony before Congress. While it's this blogger's personal opinion that politicians took the opportunity to grandstand a bit too far on this point, nevertheless, it was a boneheaded move by the Big 3 that they should've seen coming. We've learned today that fewer employees will get to fly the friendly skies in one of General Motors' corporate jets, as the automaker has announced it will be ridding itself of two. That will cut down the current corporate fleet of leased jets from five to three, and an additional two were gotten rid of last September. In addition to dumping the G5s, GM is also cutting half its air travel staff and restricting all forms of employee travel to slow the rate of cash its burning through each month, which in the third quarter reached $6.9 billion/month.

http://www.autoblog.com/2008/11/21/g...orporate-jets/


Mmm Good! Positive PR.

[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.

[DGthe3]

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.

I assume its the same reason why people lease cars.

[Inspector 17]

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.

[Supermans]

I'm glad GM took my advice and sold their gulf-streams which is the equvilent of a whole lot of cars and trucks sold so it does make a difference even if it is small in the big picture of things..Staying at a cheaper hotel for example in the long term also saves lots of money for corporates.

You say that if Rick had flown coach, it might have saved GM from selling their two jets, however if he flew coach or first class all the time, they really don't need them in the first place..

[Superman09]

From what I have been told leasing a plane all you have to do is show up. Where as buying you have to pay for gas, a pilot, a place to put the plane, etc. etc. But that is just what I have been told

[headpunter]

This is Bullcrap.

The congressmen should never have mad any big deal about this in the first place. Why the hell dont they go after Nancy Pelosi....she flies PRIVATE JET home every weekend from D.C. to San Francisco

[Wm Holden]

We can not (should not?) throw tax money at big buisness mis-management....we will....but there should be some accountability....checks and balances kinda thing.

The bleeding must stop....cauterize....and procede.

[The_Blur]

This is good. It is a token move that shows that GM cares about its image. I don't see what's not to like.

[Mr. Wyndham]

stupid issue...good PR move....still an unbelievably stupid issue. I mean of all things to bicker about!!!

[zebra]

+1

[Sierra]

Originally Posted by Wm Holden

We can not (should not?) throw tax money at big buisness mis-management....we will....but there should be some accountability....checks and balances kinda thing.

The bleeding must stop....cauterize....and procede.

Government just threw money @ Citigroup. Citigroup and its like got their by mismanagement. With AIG and citigroup the government gave collectively 100 bill. 25 bill for 3 car companies with more ramifications if they close looks like a drop in the bucket to me.

[Georgie]

Originally Posted by headpunter

This is Bullcrap.

The congressmen should never have mad any big deal about this in the first place. Why the hell dont they go after Nancy Pelosi....she flies PRIVATE JET home every weekend from D.C. to San Francisco

exactly. thank you. i guess Wagoner and his company are a better outfit than our Government; at least they put their money where their mouth is. Al Gore will complain about carbon emissions then fly around in his private jet

i love how the "elite ruling class" derides an activity then participates in it. mismanagement of a business... don't get me started on the mismanagement perpetuated by government...

[MCPOAJ]

haha this is awesome it's like GM bitchslaped cnn