Corporate Jets Are Out
12-26-2008, 05:09 PM
#1
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Corporate Jets Are Out
From the New York Times:
Maybe General Motors should throw in a fleet of Cadillacs.
The automaker is dumping its corporate jets into what some participants say is the worst market they have ever seen.
Just seven months ago, hundreds of mega-millionaires, including Ralph Lauren and David Geffen, were elbowing one another in the lineup to buy a $60 million Gulfstream G650, which was not expected to hit runways until 2012.
It did not matter that $500,000 had to be wired to Gulfstream's account at a Midwest branch of JPMorgan Chase at exactly 12:01 a.m. April 15, or that those who secured a place in line could not sell their rights if they changed their minds, according to one bidder.
Business & Technology | Corporate jets are definitely out | Seattle Times Newspaper
Maybe General Motors should throw in a fleet of Cadillacs.
The automaker is dumping its corporate jets into what some participants say is the worst market they have ever seen.
Just seven months ago, hundreds of mega-millionaires, including Ralph Lauren and David Geffen, were elbowing one another in the lineup to buy a $60 million Gulfstream G650, which was not expected to hit runways until 2012.
It did not matter that $500,000 had to be wired to Gulfstream's account at a Midwest branch of JPMorgan Chase at exactly 12:01 a.m. April 15, or that those who secured a place in line could not sell their rights if they changed their minds, according to one bidder.
Business & Technology | Corporate jets are definitely out | Seattle Times Newspaper
12-27-2008, 07:27 AM
#3
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Reporters and politicians are quick to assault corporate aviation when its popular to do so, but you never see anyone running the math on hourly operating cost of a company jet vs. airline travel, including CEO time and hotels. Not to mention the fact that we can fly to places the airlines couldnt dream of. If you throw 5 people on our 9 seat jet, you will have a cheaper day than if you took the airlines on a trans con flight, and everyone's home with their family for dinner. NBAA even has an unbiased program you can run to see when it is cheaper to fly the jet or the airlines. Smart business people dont use airplanes for just cause their neato, they are financial descisions that help their business model succeed.
12-27-2008, 07:48 AM
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I wonder if the bank's that were bailed out also cut down on their corp a/c usage?
Quick side note -Does the UAW use corp a/c ?
Quick side note -Does the UAW use corp a/c ?
Last edited by DYNASTY HVY; 12-27-2008 at 07:57 AM. Reason: the light went off
12-27-2008, 07:54 AM
#5
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I quite agree with you both. Posted this article to give the group a taste of the different perspectives out there. In this age where the media uses phrases like "financial crisis" or "credit meltdown," people are desperate to find someone to blame. Unfortunately, in the world of corporate aviation, a lot has to do with appearances. It is somehow cathartic for an unemployed auto worker to read how Congress is berating his boss for flying the Gulfstream instead of taking his shoes off in a TSA line like everyone else. Just for that moment, he feels better about himself and his position in life.
Does the sun rise from the East? Is the Pope Catholic? Will we get out of this man-made disaster? Yes, I think so. Spend the time to prepare yourself for the next upturn.
Does the sun rise from the East? Is the Pope Catholic? Will we get out of this man-made disaster? Yes, I think so. Spend the time to prepare yourself for the next upturn.
12-27-2008, 10:32 AM
#6
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Corporate Jets are high visibility and are easy targets for the politicians. I wonder how much productivity was lost when the execs drove from Detroit to Washington. Jets save time and if you have a group that has to travel on a short notice you can even save money over full airline fares.
12-27-2008, 01:40 PM
#7
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Originally Posted by AirbusA320
Jets save time and if you have a group that has to travel on a short notice you can even save money over full airline fares.
One way First Class frp, DTW to DCA $689 including all fees... all the booze they can consume at no extra charge.
https://res.nwa.com/secure/flight.nw...ponse%407e8edf
Do you think you can get a G-V from the hangar to the end of the departure runway for less than $689, including all fees and crews' salaries?
12-27-2008, 02:48 PM
#8
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Back in Sept. I needed to go from BDL-DCA, RT same day was about $1,000.00 I've flown that route over 100 times In Lears and Hawkers and it's 1 hour of block time each way. Perhaps 5 in a Citation or 6 in a Lear and the company will save money.
I just checked prices and for Monday they want $1280 RT per person.
I just checked prices and for Monday they want $1280 RT per person.
Last edited by AirbusA320; 12-27-2008 at 02:58 PM. Reason: Price Check
12-28-2008, 05:08 AM
#10
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Originally Posted by AirbusA320
I just checked prices and for Monday they want $1280 RT per person.
$2500 DOC (mid size jet) x 2 hours (BDL-DCA-BDL) = $5000-$6000 (approx)
$1280 (Round trip ticket) x 4 pax = $5120 (approx)
.....hmmm, come and go when I want, no three year old snot-bubbles on the back of my seat and oh yeah, I know EVERYBODY sitting around me.
No brainer to me.
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