GM Closing Flight Dept
12-02-2008, 02:12 PM
#1
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GM Closing Flight Dept
Well, after the knee jerk reaction from congress (who buy the way also fly on chartered corporate aircraft), GM is closing its corporate flt dept.
THE ASSOCIATED PRESS
Posted Dec 02, 2008 @ 12:26 PM
DETROIT —
General Motors Corp. is closing its corporate aircraft operations in Detroit as part of its budget cutbacks as it lobbies Congress for millions in loans.
GM's CEO Rick Wagoner and the CEOs from Ford Motor Co. and Chrysler LLC were harshly criticized in Congress last month for flying to Washington on separate corporate jets to lobby for $25 billion in federal loans.
This time Wagoner is taking a company car — not a plane — to Washington to help the industry make its case before Congress. Ford boss Alan Mulally also is traveling by car from Detroit for his second appearance. Chrysler wouldn't say how its CEO Robert Nardelli would get there, citing security reasons, but said it wouldn't be by corporate plane.
All three executives are returning to Congress for hearings on Thursday and Friday. They are seeking the bailout loans to help them through the recession and the worst sales downturn in 25 years.
Ahead of the return visit, GM said in a statement today that it would cease operating its aircraft services starting Jan. 1.
"Due to significant cutbacks over the past months, GM travel volume no longer justifies a dedicated corporate aircraft operation," the company said in a statement.
GM, the statement said, is exploring options for transferring its aircraft to another operator and is trying to sell four of the aircraft. Last week the company said it was returning two of its five remaining jets to a leasing company, so the number of remaining jets is unclear.
The automaker will close its jet facility at Detroit's Metro Airport and will try to find another tenant for the balance of the lease, which expires next year, the statement said.
Also today, Ford said in a plan submitted to Congress to justify the loans that it would sell its five remaining corporate aircraft.
Wagoner will drive in a Chevrolet Malibu hybrid sedan when he makes the 520-mile (835-kilometer) trek from Detroit to Washington, GM spokesman Tony Cervone said today. Ford's Mulally will be taking a hybrid Ford Escape.
THE ASSOCIATED PRESS
Posted Dec 02, 2008 @ 12:26 PM
DETROIT —
General Motors Corp. is closing its corporate aircraft operations in Detroit as part of its budget cutbacks as it lobbies Congress for millions in loans.
GM's CEO Rick Wagoner and the CEOs from Ford Motor Co. and Chrysler LLC were harshly criticized in Congress last month for flying to Washington on separate corporate jets to lobby for $25 billion in federal loans.
This time Wagoner is taking a company car — not a plane — to Washington to help the industry make its case before Congress. Ford boss Alan Mulally also is traveling by car from Detroit for his second appearance. Chrysler wouldn't say how its CEO Robert Nardelli would get there, citing security reasons, but said it wouldn't be by corporate plane.
All three executives are returning to Congress for hearings on Thursday and Friday. They are seeking the bailout loans to help them through the recession and the worst sales downturn in 25 years.
Ahead of the return visit, GM said in a statement today that it would cease operating its aircraft services starting Jan. 1.
"Due to significant cutbacks over the past months, GM travel volume no longer justifies a dedicated corporate aircraft operation," the company said in a statement.
GM, the statement said, is exploring options for transferring its aircraft to another operator and is trying to sell four of the aircraft. Last week the company said it was returning two of its five remaining jets to a leasing company, so the number of remaining jets is unclear.
The automaker will close its jet facility at Detroit's Metro Airport and will try to find another tenant for the balance of the lease, which expires next year, the statement said.
Also today, Ford said in a plan submitted to Congress to justify the loans that it would sell its five remaining corporate aircraft.
Wagoner will drive in a Chevrolet Malibu hybrid sedan when he makes the 520-mile (835-kilometer) trek from Detroit to Washington, GM spokesman Tony Cervone said today. Ford's Mulally will be taking a hybrid Ford Escape.
12-02-2008, 07:30 PM
#2
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Ford, Too
Ford is shutting down their flight department, too. Both Ford and GM have had corporate flight departments for decades and Ford operated a company shuttle for many years. They operated Convairs for a number of years then went to 737s. I'm afraid this is just the beginning. This is not a good time for aviation. 
12-03-2008, 01:09 PM
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Joined APC: Oct 2006
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Aviation Week
December 2, 2008
By Jim Swickard
Ford, GM to Shut Flight Ops
Ford Motor Co. and General Motors are closing their corporate flight departments as part of their proposals to obtain billions of dollars in emergency loans from the U.S. government. Leaders of both companies were criticized by Congress last month for coming to Washington in their respective business jets to appeal for federal money. Ford was the first automaker to announce full details of its recovery plan this morning, including divesting itself of its aircraft. Ford said it will sell its five corporate aircraft as part of an overall cash improvement plan. Within the hour, GM announced that it was shutting its GMATS flight operation at Detroit's Metro Airport and vacating its facility there by Jan. 1. GM said it has sold two aircraft and was attempting to sell four others in order to terminate their leases. In any case, the company said it wants to transfer its aircraft to other companies and/or end its aircraft leases by Jan. 1. It said it was getting rid of its airplanes because "GM travel volume no longer justifies a dedicated corporate aircraft operation." Kenneth E. Emerick, flight ops director of GM Worldwide Travel Services, is a former chairman of the National Business Aviation Association and remains a member of the board of directors. Privately held Chrysler does not own any aircraft, but charters or leases aircraft as needed. The company notes it tries to fly the aircraft as full as possible - including offering seats to sick children traveling to or from Detroit-area hospitals.
December 2, 2008
By Jim Swickard
Ford, GM to Shut Flight Ops
Ford Motor Co. and General Motors are closing their corporate flight departments as part of their proposals to obtain billions of dollars in emergency loans from the U.S. government. Leaders of both companies were criticized by Congress last month for coming to Washington in their respective business jets to appeal for federal money. Ford was the first automaker to announce full details of its recovery plan this morning, including divesting itself of its aircraft. Ford said it will sell its five corporate aircraft as part of an overall cash improvement plan. Within the hour, GM announced that it was shutting its GMATS flight operation at Detroit's Metro Airport and vacating its facility there by Jan. 1. GM said it has sold two aircraft and was attempting to sell four others in order to terminate their leases. In any case, the company said it wants to transfer its aircraft to other companies and/or end its aircraft leases by Jan. 1. It said it was getting rid of its airplanes because "GM travel volume no longer justifies a dedicated corporate aircraft operation." Kenneth E. Emerick, flight ops director of GM Worldwide Travel Services, is a former chairman of the National Business Aviation Association and remains a member of the board of directors. Privately held Chrysler does not own any aircraft, but charters or leases aircraft as needed. The company notes it tries to fly the aircraft as full as possible - including offering seats to sick children traveling to or from Detroit-area hospitals.
12-04-2008, 04:24 AM
#4
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Position: Turbo-props' and John Deere's
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This is partially the fault of the GA operators out there not letting the public know how fundemental private air charter or flight departments are to companies. Execs of even small to medium companies that operate flight departments know this, let alone a major auto company!
12-04-2008, 05:19 AM
#5
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Originally Posted by Ewfflyer
This is partially the fault of the GA operators out there not letting the public know how fundemental private air charter or flight departments are to companies. Execs of even small to medium companies that operate flight departments know this, let alone a major auto company!
The public is given too much credit and as far as GA is concerned its a business that serves a purpose.And if the public wants more info than they schould do some enqiuries on their own its not reallly that difficult to do.
Lots of envy in this country and its pathetic.
Night all!
12-04-2008, 06:53 AM
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What congress and the average citizen fail to realize is that the corporate jet, while maybe a little expensive, offers these execs. of multi-billion dollar companies more time to do more business....It's not really good use of the CEO's time to have to drive 6 hours from Detriot to DC, and then 6 hours back, when they could have been there in 40 minutes...they lose 2 days of work in travel time alone!.....time is money!!
12-04-2008, 07:22 AM
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Originally Posted by DYNASTY HVY
No offence ,but does anyone really think that the public really gives a damn who is flying what ?
The public is given too much credit and as far as GA is concerned its a business that serves a purpose.And if the public wants more info than they schould do some enqiuries on their own its not reallly that difficult to do.
Lots of envy in this country and its pathetic.
Night all!
The public is given too much credit and as far as GA is concerned its a business that serves a purpose.And if the public wants more info than they schould do some enqiuries on their own its not reallly that difficult to do.
Lots of envy in this country and its pathetic.
Night all!
What would the senate committee have said if all three failed to show up because their Northwest flight from DTW was cancelled? Or would that have opened up a whole new can of worms...........
12-04-2008, 09:00 AM
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Originally Posted by Jetset0045
What congress and the average citizen fail to realize is that the corporate jet, while maybe a little expensive, offers these execs. of multi-billion dollar companies more time to do more business....It's not really good use of the CEO's time to have to drive 6 hours from Detriot to DC, and then 6 hours back, when they could have been there in 40 minutes...they lose 2 days of work in travel time alone!.....time is money!!
12-04-2008, 09:04 AM
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Detroit News
December 3, 2008
By Tom Greenwood
Auto executives travel to D.C. by car but is it cheaper?
After being criticized for flying to Washington on corporate jets last month, when they asked Congress for $25 billion in loans, the heads of the Big Three automakers decided to travel by car for tomorrow's follow up appearance. General Motors' Rick Wagoner, Ford's Alan Mulally and Chrysler's Robert Nardelli all rode in hybrid cars made by their respective companies. So, is it really cheaper to drive a hybrid vehicle to Washington D.C., rather than fly in a corporate jet? It would seem so, but when time and numerous costs come into play, the answer isn't so clear.
Detroit is 524 miles from Washington, or about 1,050 miles round trip. Gasoline is averaging about $1.69 per gallon in Metro Detroit.
• GM's Chevrolet Malibu hybrid gets 24 mpg city and 32 mpg highway. Split the difference and you average about 28 mpg. So it would cost Wagoner about $64 in fuel to drive from Detroit to D.C. and back again.
• A Ford Escape hybrid (34 city/30 highway) would average about 32 mpg. The roundtrip gas tab for Mulally would be about $59.
• Chrysler's Aspen SUV hybrid gets about 20 mpg. It would cost Nardelli about $90 in gas roundtrip from here to the nation's capital.
Each car would be assessed about $36 in tolls.
At an average speed of 65 mph it would take just about eight hours each for Mulally, Nardelli and Wagoner to drive one way to Washington. That's 16 hours round trip (not counting stopping at a Cracker Barrel restaurant at least once each way.)
So what would it cost to fly in a corporate jet?
At Ford, top executives sometimes travel in a Gulfstream IV jet, which has a top speed of about 517 mph. According to jets.com, the average hourly cost of using a Gulfstream IV is about $3,615. If that cost applies to Ford's Gulfstream IV, you're looking at about $14,460 for the three-hour roundtrip flights, including takeoffs, landings and taxiing. But these comparisons do not take into account the executives' salaries. Is it still cheaper when you factor in hours spent on the road or in the air? In 2007, Mulallay's total compensation package -- including a $2 million salary, $7 million bonus plus stock options and assorted perks -- totaled about $21 million. If he puts in a 60 hour week, that comes to $6,730 per hour. At that rate, in 2007 dollars it would cost Ford about $20,290 for Mulally's time in the air, versus $107,680 to have him drive 16 hours roundtrip. (For the record, Ford has decided to sell its five corporate jets, Mulally will not receive a bonus this year, and at just under $3 a share his Ford stock is taking a bath on Wall Street. He also has promised to accept a yearly salary of $1 if Congress approves the loan.) Incidentally, members of Congress routinely accept rides on corporate jets, but under the current rules they are required to reimburse the corporation the "equivalent of a first-class ticket." But common sense says that the cost of a first-class ticket on a commercial airliner pales in comparison to the cost of flying in a private jet.
December 3, 2008
By Tom Greenwood
Auto executives travel to D.C. by car but is it cheaper?
After being criticized for flying to Washington on corporate jets last month, when they asked Congress for $25 billion in loans, the heads of the Big Three automakers decided to travel by car for tomorrow's follow up appearance. General Motors' Rick Wagoner, Ford's Alan Mulally and Chrysler's Robert Nardelli all rode in hybrid cars made by their respective companies. So, is it really cheaper to drive a hybrid vehicle to Washington D.C., rather than fly in a corporate jet? It would seem so, but when time and numerous costs come into play, the answer isn't so clear.
Detroit is 524 miles from Washington, or about 1,050 miles round trip. Gasoline is averaging about $1.69 per gallon in Metro Detroit.
• GM's Chevrolet Malibu hybrid gets 24 mpg city and 32 mpg highway. Split the difference and you average about 28 mpg. So it would cost Wagoner about $64 in fuel to drive from Detroit to D.C. and back again.
• A Ford Escape hybrid (34 city/30 highway) would average about 32 mpg. The roundtrip gas tab for Mulally would be about $59.
• Chrysler's Aspen SUV hybrid gets about 20 mpg. It would cost Nardelli about $90 in gas roundtrip from here to the nation's capital.
Each car would be assessed about $36 in tolls.
At an average speed of 65 mph it would take just about eight hours each for Mulally, Nardelli and Wagoner to drive one way to Washington. That's 16 hours round trip (not counting stopping at a Cracker Barrel restaurant at least once each way.)
So what would it cost to fly in a corporate jet?
At Ford, top executives sometimes travel in a Gulfstream IV jet, which has a top speed of about 517 mph. According to jets.com, the average hourly cost of using a Gulfstream IV is about $3,615. If that cost applies to Ford's Gulfstream IV, you're looking at about $14,460 for the three-hour roundtrip flights, including takeoffs, landings and taxiing. But these comparisons do not take into account the executives' salaries. Is it still cheaper when you factor in hours spent on the road or in the air? In 2007, Mulallay's total compensation package -- including a $2 million salary, $7 million bonus plus stock options and assorted perks -- totaled about $21 million. If he puts in a 60 hour week, that comes to $6,730 per hour. At that rate, in 2007 dollars it would cost Ford about $20,290 for Mulally's time in the air, versus $107,680 to have him drive 16 hours roundtrip. (For the record, Ford has decided to sell its five corporate jets, Mulally will not receive a bonus this year, and at just under $3 a share his Ford stock is taking a bath on Wall Street. He also has promised to accept a yearly salary of $1 if Congress approves the loan.) Incidentally, members of Congress routinely accept rides on corporate jets, but under the current rules they are required to reimburse the corporation the "equivalent of a first-class ticket." But common sense says that the cost of a first-class ticket on a commercial airliner pales in comparison to the cost of flying in a private jet.
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