5 ms·

Sorry, but this is nothing more than a cheap attempt at stirring up class hatred. The jet is one of the most useful, efficient tools in the corporate arsenal,

by numair 18y ago

Sorry, but this is nothing more than a cheap attempt at stirring up class hatred. The jet is one of the most useful, efficient tools in the corporate arsenal, especially when you have to run around and meet people 24/7 (as tends to be the case with banking). If we lived in a perfect world (which isn't the case), everyone would have access to this sort of transportation; having experienced it first-hand, I can say that it seriously makes life more productive. Also, there's a very small number of short-runway jets capable of transcontinental range, and the Falcon 7X is one of the most efficient of the pack. I think Citigroup is one of the worst-run companies in America, if not the world, but I don't think their private jet usage is the problem there. In fact, perhaps it would have been better for us all if they had spent more time running around the world and seeing the sort of mess they had been creating (one need only see the tract-home-filled foothills of Orange County, California in 2004 to understand there was a bubble). This is the absolute worst time for us to start getting morally indignant over others' consumption. The more we do this, the worse it will be. Any purchases that lead to gains in productivity need to be celebrated -- that's how money swirls through the economy and gets us out of this mess! Oh yeah, and people who work in corporate aviation departments tend to be really cool.

kirse 18y ago
The jet is one of the most useful, efficient tools in the corporate arsenal Maybe they should be taking public airline transportation, it might slow down the rate at which they can flush investors' money down the toilet.
peter123 18y ago
Why can't you 'run around and meet people 24/7' with commercial airlines? This is not a moral issue, it's an issue of corporate governance competence. Corporate jet is a luxury, just like $1M in CEO office renovations at Merrill Lynch. I can't believe you can lose $50M in productivity by using alternatives to private jets.
- aaronblohowiak 18y ago
  My tax dollars make it a moral issue. Why should my life's work be hijacked to subsidize this?
  - brent 18y ago
    The OP's argument is that it will increase productivity. If it pays itself off and makes the company a net gain will you still be upset?
    - moe 18y ago
      How exactly do you pay off $50M with a private jet that also incurs significant costs of ownership? I mean there are commercial flights to just about everywhere in the world at very frequent intervals. How can one or two hours offset possibly make such a difference?
- Prrometheus 18y ago
  Trips on commercial airlines takes hours longer, mostly due to security precautions.
  - Retric 18y ago
    And cost far less. It's not just the 50 million it's also the pilot, fuel, etc.
    - Prrometheus 18y ago
      Say an executive saves 400 hours a year by flying private. If that makes him a few percent more effective in a company the size of Citigroup, it's worth it.
      - moe 18y ago
        Well, the jet can probably only be used by one executive (or one team) at a time. Thus each of these 400 hours your executive could save would have to be worth $125000 USD. Oh, and remember these jets cost upwards of $15000 per roundtrip, too... No, I think citigroup suffers from the same illness as GM and Ford - their top management has completely disconnected from reality, long ago. http://www.youtube.com/watch?v=mk7SKTheO2k http://www.youtube.com/watch?v=mk7SKTheO2k
        Prrometheus 18y ago
        Do you throw out your jets after one year? My little firm did billion dollar deals, and we used private jets to flit our management teams from one investment fund to the next. Citigroup is much, much bigger. 400 hours (per year!) could easily be worth $50 million.
        moe 18y ago
        But how? I agree that my calculation was flawed, but even if you stretch it over 10 years that's still a rate of $12500 per saved hour - without counting the cost of ownership and only to break even. Are there really deals that turn out so much more profitable only because you arrive 2 hours earlier?
anewaccountname 18y ago
I think buying 100 HP Halos would be a better expenditure than one of these planes (not to mention the pilot/staff/maintenance/fuel that will be spent on this thing compared to the upkeep of a Halo).

by numair 18y ago

kirse 18y ago

The jet is one of the most useful, efficient tools in the corporate arsenal Maybe they should be taking public airline transportation, it might slow down the rate at which they can flush investors' money down the toilet.

peter123 18y ago

Why can't you 'run around and meet people 24/7' with commercial airlines? This is not a moral issue, it's an issue of corporate governance competence. Corporate jet is a luxury, just like $1M in CEO office renovations at Merrill Lynch. I can't believe you can lose $50M in productivity by using alternatives to private jets.

aaronblohowiak 18y ago
My tax dollars make it a moral issue. Why should my life's work be hijacked to subsidize this?
- brent 18y ago
  The OP's argument is that it will increase productivity. If it pays itself off and makes the company a net gain will you still be upset?
  - moe 18y ago
    How exactly do you pay off $50M with a private jet that also incurs significant costs of ownership? I mean there are commercial flights to just about everywhere in the world at very frequent intervals. How can one or two hours offset possibly make such a difference?
Prrometheus 18y ago
Trips on commercial airlines takes hours longer, mostly due to security precautions.
- Retric 18y ago
  And cost far less. It's not just the 50 million it's also the pilot, fuel, etc.
  - Prrometheus 18y ago
    Say an executive saves 400 hours a year by flying private. If that makes him a few percent more effective in a company the size of Citigroup, it's worth it.
    - moe 18y ago
      Well, the jet can probably only be used by one executive (or one team) at a time. Thus each of these 400 hours your executive could save would have to be worth $125000 USD. Oh, and remember these jets cost upwards of $15000 per roundtrip, too... No, I think citigroup suffers from the same illness as GM and Ford - their top management has completely disconnected from reality, long ago. http://www.youtube.com/watch?v=mk7SKTheO2k http://www.youtube.com/watch?v=mk7SKTheO2k
      - Prrometheus 18y ago
        Do you throw out your jets after one year? My little firm did billion dollar deals, and we used private jets to flit our management teams from one investment fund to the next. Citigroup is much, much bigger. 400 hours (per year!) could easily be worth $50 million.
        moe 18y ago
        But how? I agree that my calculation was flawed, but even if you stretch it over 10 years that's still a rate of $12500 per saved hour - without counting the cost of ownership and only to break even. Are there really deals that turn out so much more profitable only because you arrive 2 hours earlier?

anewaccountname 18y ago

I think buying 100 HP Halos would be a better expenditure than one of these planes (not to mention the pilot/staff/maintenance/fuel that will be spent on this thing compared to the upkeep of a Halo).