GM CEO To Continue Flying Private, Company Will Downsize Jet Fleet

From ABC News:

General Motors said today that it is putting two of its five corporate jets out of service because the planes are not being used enough. The top three executives at GM, however, will continue to use the private luxurious jets for all of their business and personal travel, despite a flurry of criticism over the perk following an ABC News report this week.

An ABC News investigation revealed that the top three automakers have together spent several hundred million dollars to buy, maintain, and operate a fleet of top-of-the-line private jets for their top executives.

Comments

[LastLiberalRepublican]

Why can't GM just engage Andy Fastow as a consultant to set up some off balance sheet "special purpose entities" where they can park these planes and maybe lease them back for $1 per year. No problem, just use some imagination. Plus, I understand that Andy has plenty of time on his hands and would love the work.

[CR46]

Give them the bailout but remove these executives!!!!!

[bmwracer]

GM arrogance.

Send the execs to the unemployment line, then give them their bailout.

The Fed needs to teach these fatcats some tough lessons that us regular folks are feeling.

[vippy]

Sorry, don't quite agree. Why did you not ask the same question with AIG and Goldman Sachs?
AIG laughed in our faces and after they received the money lived it up at some resort, and then
went partridge hunting. GM's Rick Wagoner helped to put America's economy back on its feet
after 9/11. What short memories we have!

[bmwracer]

Old, wasteful habits die hard with this bunch... They need to be cut off at the knees.

[psch]

There's plenty of blame to go around...consumer's not demanding the greener products, unions pushing the salaries and healthcare benefits too far (which is almost understandable, but not all too responsible if you see what the execs make), the HMOs for out of control premiums, and for the executives not being the visionaries we should expect from people with the paychecks they demand. Get rid of the execs along with the private jets and set an example with a new kind of executive. Hard times demand leaders who can be humble, frugal, inspiring and part of the down in the trenches team players.

[max]

they should have a jet.......geezzz

[BubbasBait]

I would question a multi-billion dollar company that didn't have a fleet of jets to escort their execs around. These guys make more important decisions in 10 minutes than most of the posters of this web site make in their entire lives..

[forpeace]

*

BubbasBait
=======

Making important decisions .......... like plunging the Auto Industry into bankruptcy!

*

[Cybersquirt]

you're aptly named for only a bubba would fall for your bait.

[berryessence]

OBVIOUSLY,

YOU ARE NOT A FATCAT THAT MAKE DECISION IN 10 MIN

Thank God

[kelcuk]

BubbasBait

Remember the billionaire Ross Perot? Maybe you don't. When he ran for Prez in 92 and went to debate Clinton and Bush1, he had everybody laughing. He was joking that Clinton arrived at the debate in a private jet with over a hundred handlers and many limos and that he (Perot) had flown commercial (coach, I believe), had brought just two assistants, and rented a Crown Victoria at the airport to get to the debate. Its too bad that certain Americans equate "big"and numbers with lots zeros behind them with success. I doubt if any of these GM executives have made any corporate decisions bigger or more important than those made by Ross Perot. The lack of prudence shown by these arrogant p r--c k s at GM is a clear symptom of the problem in this country. Their "too big to fail attitude was unconvincing". If they are to be bailed out, all three of these goons need to be taken out of the picture. And no bailout unless Ross Perot agrees to run GM!

[Ramirez]

From 1992 article:
****

The Very Private World of Ross Perot HE SPLURGES ON HOMES, GEMS AND BOATS BUT SAVES PENNIES AT HOME DEPOT.

By Sandy Sheehy Reporter associate: Shelly Branch
August 1, 1992

..........­..........­...
CARS, BOATS AND PLANES ... For longer distances, Perot owns a 1983 Bell LongRanger helicopter (worth at least $300,000) that his son pilots. Perot Sr. is known to brag about his two jets -- a Gates Learjet 35A and a 1968 Gulfstream -- and how he bought them cheap on the secondhand market. Today the Gulfstream is valued at $5.5 million. His Learjet, also used by his business associates, is worth about $2.5 million. All three aircraft are registered to one of Perot's companies. Former Navy Ensign Perot's biggest personal indulgence is his boats. Like President Bush, he is a Cigarette-boat enthusiast. Oceangoing super- speedboats, they sell for as much as $750,000. Perot keeps one at Lake Texoma and one in Bermuda. The family's floating fleet also includes assorted Jet Skis, a Windsurfer, a sporty 22-foot fishing boat called Sweet Sue, and a 51-foot luxury yacht known as Chateau Margaux. The yacht was the setting for a family outing last Father's Day in the Atlantic off Bermuda.

http://money.cnn.com/magazines/moneymag/moneymag_archive/1992/08/01/87443/index.htm

[SolarArray]

I haven't read all the posts but I'm sure the majority of people think the same as I do. These CEOs are dinosaurs, old hat, already done, been there and "What planet are you stupids arseholes living on??" I cannot express in words what level in hell these idiots should be fastracked to. All of us who saw the latest videos of these stupid CEOs trying to make cogent explanations were laughing our butts off (Not in a funny way). Too bad that they don't realize that there are real people who are affected.

[BJD44]

Hmmm......MAYBE SARAH PALIN CAN PROVIDE THEM WITH A FEW POINTERS ON SELLING THEIR STUPID JETS, HUH?

Sarah......please provide contact info. Maybe that will, in turn, give YOU a new talking point, too!!!

[CR46]

Sorry, she's busy keeping Alaska safe from any turkeys that escape slaughter and rear there heads up over Wasilla!!!! LOL!!

[MagicalPossibilities]

Why don't these sleazebags do what Japan Airlines CEO did - take a pay cut to $90K per year, less than the average pilot?
He rides the bus and eats lunch in the cafeteria. He feels it is his duty to share the pain of his employees who were also forced to take a pay cut to save the company.

[ghunt]

Because this is America, FU.K YEAH! And we don't quite match up to the Japanese in terms of honor.

[Samalabear]

Sounds like a plan to me. American CEOs need to be cut down many, many pegs -- all of them. Their arrogance and sense of entitlement is abhorrent.

[berryessence]

THANK YOU...THAT'S THE PROBLEM

IN THE 80'S CEO PAY USE TO BE 400K - 1M

NOW IT'S 10M - 200M

BIG DIFFERENCE ESPECIALLY AN AUTOWORKER MADE $35 - 55K AS AVERAGE

I SAY THEY MAKE $250K A YEAR OR GET FIRED

[NorthernCross]

Union bosses are at least as much at fault, I think. They knew that labor costs would make it hard for the Big 3 to compete with Japanese companies which run on non-union labor, but they didn't let management make the necessary adjustments.

[janeInCA]

They're all in this together. If you accept my big raise and bonus then I accept yours the same.

[nanotubz]

That might have been true, if the contract provisions causing the problems hadn't been in place before the appearance of the Japanese imports. You're looking at provisions that date back to the 50's and 60's. And do you really except the retirees to vote away their pension benefits? Would you?

[kelcuk]

Actually, Japanese and German automakers make MORE per hour than American autoworkers. However, in Japan and Germany, workers get a healthcare tax deducted from their paychecks and the government takes care of that part of the equation...

[flabingo]

Look at the BOD and you see Stanley O'Neil. Check his wiki. See what Merrill paid to get rid of him?
The Board has to go, remember they serve at the pleasure of the Stockholders. This is not rocket science.

[gpsl]

These guys just don't relate to us "little people" who travel coach.

[suesue707]

Isn't the real issue Americans not wanting to downsize from their SUVs? We are all culpable (atleast those who drive only SUVs). They kept producing gas guzzlers and we told them with our wallets that this is what we wanted to drive. Shame on us, too for not speaking up much sooner.

[carrieanna]

Yes, and not live where public transportation is available.

[Haditup2here]

I say that people who drive gas guzzlers or cars that get less than a certain amount of miles per gallon should pay an additional amount of tax over their car tax that goes towards the funding of public transportation. However, Bush gave tax credits to those buying Hummers. Go figure.

[frantaylor]

Raise the gas tax. Raise the gas tax. Hello, isn't it obvious?!?! The price of gas is swinging back and forth by dollars a gallon lately. The federal gas tax is something like 18 cents. It could be a dollar at this point and nobody would bat an eyelash. All that extra money would really help out.

[kelcuk]

Absolutely right. And what's never talked about in the media is this 1) those vehicles weigh 6 or 7 thousand pounds and therefore put more wear and tear on the road than a 3,000 pound Accord or Camry 2) THEY are a big part of the consumption equation. Every day in my town, thousands of people drive to work, by themselves in Suburbans, Excursions, Expeditions etc. These vehicles consume 2.5 to 3 times the fuel of, lets say, a Honda Civic. If they were out of the picture, the level of consumption would decline significantly, thereby helping to keep gas prices lower 3) Because they burn more fuel they also pollute more.
Tax these things into oblivion!

[NorthernCross]

SUV owners are culpable, how? Were they holding a gun to anyone's head? Come on, blaming consumers for bad business decisions of big corporations is just silly.

[dandypuddin]

so how many SUVs do you own? How are the consumers not complicit in a consumer society? Silly.

[dandypuddin]

I'd much rather them lose their jobs than their jets.

[Haditup2here]

A lot of people are on that same page. However, this is a just a stunt to keep milking the cow while it is still in the barn.

[Cybersquirt]

while I'm sure a few of them could (be forced to) retire I'm wondering when their bonuses will get axed.