Citi Jet Purchase: $50 Million, 12-Seat Plane Despite $45 Billion Bailout

The New York Post's Jennifer Keil and Chuck Bennett reported in Monday's paper that Citigroup, which has received $45 billion in government bailout funds, is about to upgrade to a new $50 million, twelve-seat corporate jet.

The plane, the Dassault Falcon 7X, is a luxurious jet with a range of 5,950 nautical miles (meaning it can fly from New York to all of Europe and South America, as far east as Riyadh, and as far west as Honolulu or Petropavlovsk, Russia). The Post reports it has "plush interior with leather seats, sofas and a customizable entertainment center."

The Dassault website describes the wide, generously appointed cabin, but says the "the airplane's most welcome feature may be Dassault's breakthrough environmental system." It touts "quieting acoustics" and advanced temperature monitoring that contribute to a more comfortable passenger experience.

The Post also reports that Citi executives are "quietly trying to unload two of their older Dassault 930EXs," worth approximately $27 million each.

Comments

[HarryV]

WHY DID CITIGROUP SPEND THE MONEY ON A PLANE?. . .BECAUSE THEY COULD!

The government are suppose to make the companies ACCOUNTABLE for every penny of the bail out money....so far there's little supporting evidence of this. Executives are still getting their HUGE BONUSES and these are the companies that take much and give little back to the very people that helped them out of their situation. Who's getting a break on their mortgage? Not me.

The GOVERNMENT LET THIS HAPPEN after all and the bailout money I'm sure will kick start the economy but again it's tailored to help corporations who will TAKE ADVANTAGE of the American people once more. Without workers there is no corporate America or government but both are working in the interests of each other so that they can make lots of money for themselves, and the American people raise their fists in anger for a few days and then go back to work.

The government has a RESPONSIBILITY to make sure Americans are being looked after but my fear is if the government does not make companies accountable this whole situation will repeat itself in the near future.

[LoamModNow]

If all you people out there having trouble with your home loans with CitiBank, Citi Mortgage, B of A, or any of the rest of those money grubbing A-holes, I have the solution for you. Contact me and I will tell you the secret of getting out of that mess they got you into. Email me at acsservices1 (at) ya hoo dot c o m (acsservic­es1@yahoo.­com) .

[kesomenom]

I can not believe this, after all the money this company has gotten from us hard working tax payers they have now DOUBLED our interest rate!!!

Not because we have not paid our monthly statements, we have always paid above and beyond the min payments! Citi Bank customer service response to WHY is because the economy is bad and they had to!!! WHAT!!! As if doubeling everyones interest rate will make things better? For who? I can understand if it was a couple of points but to DOUBLE is WRONG!!...

.call your congress people call the media let them know what this company is doing to the general public and those of us who are consumers!!

[kesomenom]

I can not believe this, after all the money this company has gotten from us hard working tax payers they have now DOUBLED our interest rate!!!

Not because we have not paid our monthly statements, we have always paid above and beyond the min payments! Citi Bank customer service response to WHY is because the economy is bad and they had to!!! WHAT!!! As if doubeling everyones interest rate will make things better? For who? I can understand if it was a couple of points but to DOUBLE is WRONG!!....

call your congress people call the media let them know what this company is doing to the general public and those of us who are consumers!!

[schatz]

yea well I am one of the individuals that is struggling right now and I am also one that has my mortgage thru the wonderful Citi Corp and they are not helping us out on bit. There is always onreason or another that they are giving you to why they cant help out but we are seeing why now.

[karen1p]

I am inclined to take my money out of every institution except my local Credit Union. F*** Bank of America, F*** Citigroup.

Are y'all with me on this?

[Wide Stance]

I've got money in BOA, but I'm inclined to bank elsewhere. (No contact with Citibank, their sleazeball tactics have turned me off for decades.)

[GrkAm]

Right behind you! Bank of America showed me their "best" side years ago to the point where I figured that I am the one working for my money NOT them. They only want to take.

All funds are in accounts in our credit union. A contract for one of our vehicles was sold to Citigroup three years ago, and the first of the month is the LAST payment. I called them today and POLITELY told the customer service rep how I felt.

Remember, please--a customer rep sits in a cubicle every day. They don't get anywhere close to the executive suite nor experience the same level of compensation.

[moveleft]

AMEN!!! Credit Unions are the way to go. I pay a 9.9% APR on the VISA card I have with my CU and less than a 5% interest rate on my auto loan. Plus, when I ended up unemployed for a few months, they worked with me to adjust my payments without putting the thumbscrews to me. How did Citibank and BofA respond? They jacked up my interest rates, of course. Credit Unions are non profit and most have all of the bells and whistles of a "big bank." For 8 out of 10 customers a credit union will work. Thanks for your post, KAREN1P!!!

[Wide Stance]

This is why the bailout will fail. These b-astards are insulated from the events of this economic downfall by decades of profiteering. They've got millions stashed in offshore accounts out of reach of the IRS. They can't be trusted to spend wisely any more than the GOP can be trusted to govern.

[hart444]

Not that these guys aren't crooks, but buying a $50 million plane actually puts a lot of food on the table of the families that make the planes.

Interesting how we romanticize our auto industry but not our plane industry.

[Optimum2000]

Did you read the part of the article that says this is a "Dassault" jet? That means it is made by a French company. Not that there is anything wrong with helping out our friends in Europe, but I don't think the U.S. taxpayers are expecting CitiGroup to spread the wealth outside the country.

This has nothing to do with benefiting our airline industry. It is yet another example of the carefree expenditure and entitlement that the financial industry has grown accustomed to.

[Wide Stance]

This was so brilliant you had to post it twice?

Citigroup just announced an *additional* 50,000 jobs will be cut--after receiving 45 billion dollars from the taxpayers. That wasn't money to buy luxury items for CEOs, it was money to increase solvency and free up lending capital.

[karen1p]

Hands down the most asinine post thus far.

[HarryV]

Absolutely I couldn't agree more. Either he was being sacrastic or builds planes for a living, there's always one!!

[GrkAm]

Yes, definitely! Food on the table for all French workers.

[Chardin]

While this may seem unbelievable, in fact, it is believable based on their consistent behavior prior
to their bail out. What is really unbelievable is that they were trusted by the likes of Pelosi and all those who clunked our change into their begging cup. This is an outrage. They should be prosecuted
for falsifying their 'dire' circumstances and the money should be not only refunded to us but they should be fined and penalized heavily for this charade.

Uproar AND outrage please. Because otherwise, it will happen again, and again and again.

[KarenDuncan]

The absurdity of these banks and Wall Street greedmongers goes beyond words. My concern is that they have this country by the "short hairs" and now that Gaithner is confirmed, they have one of their own in the White House. These banks can hold this country hostage because we are so dependent on them-- if they go down, the country goes down with them. I don't like the idea of financial blackmail by the very people who created this problem. If we need to create a National Bank for a few years then perhaps we should develop a well-thought out plan that does just this. Bank of America is a predatory lender, both of credit cards and mortgages. I find it a bitter pill to swallow that they and others have received taxpayer monies have given nothing in return. I am appalled at the jet buying, selling homes to family members to hide assets, millions on bonus' and thousands on office remodeling. There is no credibility with these corporations. When all is said and done, they will not be hurting at all, not financially nor morally--they lack morals. I would like to see Gaithner, Obama and Biden apologize to the American people for allowing these predators to taken advantage of the American people. I would like to see 5% interest rates and 0% fees for five years offered to customers of each of the banks receving bailouts. It is time these predators give back to the American people.

[hart444]

Not that these guys aren't crooks, but buying a $50 million plane actually puts a lot of food on the table of the families that make the planes.

Interesting how we romanticize our auto industry but not our plane industry.

[6925thCobras]

This is not an American made plane. It is French and whatever happened to the right's disdain for the French? Remember Freedom Fries?

[Wide Stance]

Okay, hands down the most asinine remark of the thread (so far).

[TEP]

After all the bail-out money, you think they would at least buy a U.S. made aircraft.

Or perhaps the French government is helping with the bailout?

[qperry]

Hello Everyone,

I was just told by Citi less than one WEEK ago that I would not recieve a salary increase or bonus due to the financial and economic situation of Citi, and then I read this article 'HOW UTTERLY INSULTING.

[Jeremy Sharp]

Am I the only one who can do math here?

-2 old planes @ $27M ea.: +$54M
+1 new plane: -$50M
Final total: +$4M

[Logan Vester]

Your right, 27 million times 2 is 54 million. One new plane is 50 million. They have 4 million left over! How long do you think it will take for that jet to suck up 4 million dollars in repairs and fuel? My guess is... NOT LONG! In todays society with our technology, why do they even need a jet? We can communicate and do transaction through electronic means, and video conferencing. What's the point? Sure its not as nice as flying around the world and doing business in person, but in times of economic crisis, we all have to make some changes and cut backs. Any one with common sense would understand! Citi can sell both the old jets, not take delivery of the new one and save millions of dollars! They will save more than 4 million in the long run! I believe the government should ask for every penny of the 45 billion from Citi back, if that's the best they can spend out money!

[Charlotte Haines]

They haven't sold the other two planes yet. So right now they are 104million in the hole. And who is going to buy the other two planes? Another bankrupt company?

[Wide Stance]

But can you think?

The point is this...they just received a $45 billion dollars, and announced ADDITIONAL layoffs of 50,000 thousand tax paying employees.

In order to trim expenses, what will Citigroup cut? jets or employees?

Get your priorities straight--or you don't get the money. Get it?

[skinnrow]

Ok, so, what we want is for the government to give people money to be "bailed out", because of the (for whatever reason) dire financial straits they are in. In return, we want to be able to tell them how they can spend their money (any money they had before, plus any money that we gave them).

Now, I don't disagree with this, if you are going to ask me for money, because you can't make it on your own, then I have a vested interest in having a say in how that money is spent, so that I can hopefully reduce my future costs for subsidizing you.

I propose that we extend this logic to ALL forms of government assistance, including, but not limited to: medicaid, food stamps, and all other forms of welfare.
If we are going to give people money, because of their (for whatever reason) dire financial straits, why shouldn't we have a say in how they spend that money, and any other money they may have. I think that if you are on government assistance, you should not be allowed to purchase alcohol or tobacco, and you should be drug tested, and all of your expenses should be scrutinized, and subject to approval before you can spend any money, including the vehicle you drive to ask for or collect this money, it must not be too extravagant. This includes cable tv, expensive stereos in vehicles and homes, expensive tv's and phones and clothes and...

[Justin Wright]

I think it's time to force executives to have FREE video meetings via Skype. I mean seriously, can they really say that every meeting needs to be done in person?