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

[MachCrit]

The jets are not the issue. The handwriting for the Big 3 has been on the wall since the oil embargo of the '70's as they singleminedly lobbied against seatbelts, catalytic converters and better mileage, promoting ugly behemoths for short range profit? Really, who, under age 75 is gonna buy a Buick? If it wasn't for foreign competition, we'd still have the headlight dimmer switch on the floor.

Corporate aviation is an invaluable tool that is utilized by a vast majority of successfully run companies. The ability of executives to travel securely, direct to their destination, visit several different plants in one day, and be able to hold high level meetings on board, adds immensely to executive productivity. Regarding the repairman: most of these companies also have a separate shuttle flight that makes stops at each plant every day. The airlines are, increasingly, not an option for business travel.

[aviatrice]

The jets are not THE issue but they are an issue. Agree with the other comments in the first paragraph.
But the second paragraph is wrong. Corporate aviation is invaluable for very few corporations. If at least Wagoner and Mulaly had used their jets for going to Germany and learning how GM's Opel and Ford make world-beating models there, they might have had had an excuse for keeping them. But obviously they did not (well, give Ford a little credit for trying, at least more than GM).
In this era of modern communications, flying to a place is much less necessary than it was. Corporate meetings and executive productivity are way overrated. They mostly make corporate executives feel important and justify their status. Very little of value goes on behind those closed doors. Flying home on their jets is simply a perk from a gilded age that is passing quickly, no different from the golden faucets of the robber barons of old.

[youcannotbeserious]

I'm sorry, but if you came to me in your fur and bling, I'm inclined not to increase your allowance.

you said:
be able to hold high level meetings on board, adds immensely to executive productivity. Regarding the repairman: most of these companies also have a separate shuttle flight that makes stops at each plant every day. The airlines are, increasingly, not an option for business travel**

Have you heard of conference calling? Technology and computers has made brick and mortar participation a thing of the past. I can't even understand how these folks can't use remote viewing of the plants through a satellite. If the presidential election can hold these types of meetings with the media, there is no excuse why these guys can't fly 1 hr. for a meeting or use technology and innovation to do their jobs. I'm not buying it.

And I got news for you, with TSA handling security, I'm a consumer and find it increasingly not an option to do ANY kind of travel on commercial flights.

I'm convinced these perks for these failed executives should not be rewarded with taxpayer monies.
They should forfeit their golden parachutes,and pensions. My goodness gracious! Is decency out and scoundrelism in ?

They seem like SCOUNDRELS undeserving of taxpayer relief. However if they forfeit thier golden paychecks and Lear jets, I would give them a 2nd look.

[POTUS2008]

we should help them if they will bring home the jobs from overseas.

[vstar]

The country was founded on class warfare. Who cares if it's a monarchy or corporate feudalism?

[TerryFL]

.


It's the Board of Directors that keep the losers in power. GM could go belly up with a janitor in charge.


The General Motors Board of Directors

Percy N. Barnevik
Chairman,
AstraZeneca PLC
Director since 1996

John H. Bryan
Retired Chairman
and Chief Executive Officer,
Sara Lee Corporation
Director since 1993

Armando M. Codina
Chairman
and Chief Executive Officer,
Codina Group, Inc.
Director since 2002

George M. C. Fisher
Retired Chairman of the Board
and Chief Executive Officer,
Eastman Kodak Company
Director since 1996

Nobuyuki Idei
Chairman
and Chief Executive Officer,
Sony Corporation
Director since 1999

Karen Katen
Executive Vice President -
Pfizer Inc
and President -
Pfizer Global Pharmaceuticals
Director since 1997

Alan G. Lafley
Chairman, President
and Chief Executive,
The Procter & Gamble Company
Director since 2002

Philip A. Laskawy
Retired Chairman and
Chief Executive Officer,
Ernst & Young
Director since 2003

E. Stanley O'Neal
President
and Chief Operating Officer,
Merrill Lynch & Co., Inc.
Director since 2001

Eckhard Pfeiffer
Retired President
and Chief Executive Officer,
Compaq Computer Corporation
Director since 1996

John F. Smith, Jr.
Chairman,
General Motors Corporation
Director since 1990

G. Richard Wagoner, Jr.
President
and Chief Executive Officer,
General Motors Corporation
Director since 1998

Lloyd D. Ward
Chief Executive Officer,
United States Olympic Committee
Director sinc

[dandypuddin]

They'd probably do a lot better with a janitor in charge. Bet the janitor drives a Prius.

[Cybersquirt]

He's certainly used to living within his means..

[Haditup2here]

Thanks for that list. I look into the news but barely have enough time to look into the details. . .

As for the people on the board, WTF is Stanely Oneil doing there?! If I remembered correctly, he ran Merrill Lynch into the ground with all of those investments backed by subprime loans. Isn't Kodak out of business while Pfizer has laid people off? No wonder why GM is in the condition that it is in. Given the previous companies that most of these people were over, they probably don't know anything about what it takes in developing hybrid and other alternative automobiles.

Well, good luck with putting that plan for restructuring together in order to attain Bailout Money through Congress. That is all I have to say.

[Santos-Dumont]

Since job loss is one of the concerns surrounding this issue, I'd like to point out that when a company downsizes its fleet of aircraft, pilots lose their jobs; and some of the pilots make almost as much as assemble line workers.

[IndependenceDame]

The jets can be sold, but why give money to the same CEOs who have run these companies into the ground? The stockholders and Boards of Directors need to replace these guys. The workers deserve better. So do we taxpayers.

[Rudderman]

If these guys were in trouble but still doing something even close to a decent job, and taking a reasonable salary for doing it, I could care less about the jets. Not only is the opposite true, but they land in Washington with a tin cup instead of a plan on paper. Talk about balls. At least in this case, Pelosi got it right. However, where was her, "Show-me-the-plan-before-we-show-the-money" ultimatum when it came Wall Street's handout? Just asking.

[icemilkcoffee]

After all this sh*t storm they still want to keep one of their jets? These people are more tone-deaf than Kim Jong Il.

[TimmySlagle]

And how many Congressmen and Senators fly commercial?

[mjb5406]

Many do... besides, the people voted Senators and Congressmen into office and can vote them out if they don't like them. These clowns have their hands out for OUR MONEY and refuse to give up one iota of their lavish lifestyle!

[TimmySlagle]

"These clowns have their hands out for OUR MONEY and refuse to give up one iota of their lavish lifestyle!

You sound like you're referring to Congress.

You don't HAVE to buy an American car, or their stock, if you don't want one. We're stuck with Pelosi.

[imusintheevening]

Most, don't you recall the Larry Craig incident?

[TimmySlagle]

I meant Democrats.

I forgot that there were Republicans in Congress.

[human2008]

Big is not always the best .. that's what US automaker need to learn as well as the consumers need to get used to. Good look is important for driving a car, most cars made in detroit have very little appeal from a distance .. they are only big. German cars sell a lot and so do Japanese cars .. why ? design and reliability. This is same with housing - you gotta have 4000/5000 square-feet when you can live with 1500/2000 sq. ft. Capitalism without restraint can be un-digestable !!!

[frantaylor]

European cars are not known for their reliability. They are known for safety, it's why I drive one, despite the poor reliability record. Japanese cars are designed to last for 100,000 miles and then disintegrate all at once.

Henry Ford used to go to junkyards and look at dead Fords. If he saw that one particular part was surviving intact in many junked cars, he realized that it was overdesigned and he had it redesigned more cheaply. The Japanese have perfected this ritual.

You are mistaken, we do not have capitalism in this country. We have a completely fixed market operating completely under the control of government regulation. You may perceive capitalism but in fact the markets are all completely rigged.

[bubbuh]

Sure. Uhuh. Don't let reality intrude. For those that are interested in facts:



http://www.jdpower.com/autos/ratings/quality-ratings-by-brand/sortcolumn-5/descending/page-#page-anchor

[darthdarcy]

Call Sarah Palin she might be back in the market...

Well I'm sure they'll sell in Columbia...they'll snatch them right up...!

Jeeze this is so dumb...

[thegirlnextdoor]

Fire all the CEO's then give the auto industry some help.
Then ditto banks and wall street!
Get rid of those crazy bastards who just don't get it, still.

And I have not even mentioned carbon footprint and lear jets. They really don't get it!

[SammyD]

Would someone please donate books by Iaccoca and Welch to all these CEOs and the UAW? If we gather enough of the books,we can provide a copy to all members of Congress.

[mjb5406]

They'll just say that Lee and Jack were misguided. They'd prefer a book by Gordon Gekko.

[frantaylor]

Yes, because building lots of K-cars and stealing intellectual property with reckless abandon is what made America great.

[clumberfeet]

Yea, but will they stop driving their BMW M5 to the airport?

[dandypuddin]

We don't care about the jets! Once again Congress and the MSM get sidetracked by minutae. Its like they both have ADD. How much time was lost during the hearing with all this mindless grandstanding?

Please stick to the real issues and S O L V E them. That's why we hired you Congress. Give them a loan and get them to commit to building cars we should be driving, so when the credit markets open up their might be cars available that we might actually buy and that don't destroy the environment.

[BoulderSue]

I know Pelosi and Reid are not the most popular Congresspeople around, but wasn' t their demands for real plans a few points in their favor? Right now I trust them with my money more than Hank Paulso or George Bush....

[frantaylor]

Here, here. Why obsess about a couple of rich guys and airplanes when hundreds of thousands of jobs are at stake?

[Noodnik]

Because they're the ones who are mismanaging the companies. Those hundreds of jobs are at stake because of them. Giving them more money with their challenged management skills and hoping for better results is irrational.

[icemilkcoffee]

I'm in favor of the bail out too. But I certainly don't want my tax money being managed by these out-of-touch morons flying around in private jets. If there is to be a bailout, my conditions would be:
1. Taxpayer buy conrolling share in automakers. All the existing execs across the board will be fired
or
2. Every exec has to chip in his own personal money to buy stock at their own companies. If the execs don't have faith in their own companies, why should we have faith in them?
or
3. Taxpayers can bail out these automakers- but the auto companies need to sign over deeds to all their real estate, machineries and other holdings as collateral.

[Frenbar]

Congress is not their to solve our problems.

That is the mindset that got us where we are today.

Congress needs to stop being the problem. They need to stop taking our money by force to fund corporate welfare, the 'war' on drugs, 800 foreign bases around the world among other things.

[frantaylor]

"Congress is not their to solve our problems. "

I wonder why we even bother to elect people if we don't expect them to do anything for us.

[dandypuddin]

Yes, they are there exactly to solve problems and that is the only reason they are there. Not create problems and catastrophes like W. I'd much rather bail out manufacturing firms than companies like AIG and financial firms. Where was the request for a strategy from AIG CEOs before we gave them a blank check for $70 billion?