'Rescued' Citi Buying $50m Jet

[gret]

http://www.nypost.com/seven/01262009/news/nationalnews/just_plane_despicable_152033.htm

http://www.cnbc.com/id/28858921

 

[Rick James]

Good for Citi

 

[On Your Six]

Lame CNBC Article

I also read the CNBC blog. How stupid is that kid reporter? I hear that he got that job through his uncle - Jim Cramer. Clearly he doesn't know how C-Level executives of multinational organizations travel. How do you effectively manage a true multinational? Should the CEO take Southwest Airlines (cheap airfares) to visit Dubai and Korea? I guess sitting in airports for hours on end would be a good use of their VERY EXPENSIVE time? Clearly this punk kid thinks he has all the answers...

Were there abuses of power? Was cash every wasted? Absolutely. Still, you need capable airplanes to manage effectively in a global economy - especially now. Notice that nobody brought up these "excesses" when the economy was growing. Typical liberal media writing from an idiot kid who has never seen how business really works...

Here's the lame article:

Are CEOs Stupid Or Spoiled?
Posted By: Cliff Mason
setDefault('cnbc_textbody');

You know what's worse than finding out that Citigroup cnbc_comboQuoteMove('popup_c_ID0EDDAC15839609');[C 3.43 -0.04 (-1.2%) ] cnbc_quoteComponent_init_getData("c","WSODQ_COMPONENT_C_ID0EDDAC15839609","WSODQ","true","ID0EDDAC15839609","off","false","inLineQuote"); is buying a $50 million top-of-the-line corporate jet?
Finding out that Citi actually owns a whole subsidiary called CitiFlight that manages its fleet of corporate jets. Talk about terrible optics. Talk about begging Americans to nationalize their company.
This is just one of a long line of news items that has me wondering, corporate executives: stupid or just spoiled?

Here's how the question breaks down. Was John Thain, the former CEO of Merrill Lynch, stupid to spend $1.2 million of his company's money redecorating his office? Or was this just such an ingrained part of the corporate culture that to expect anything less would be uncivilized?

Were Rick Wagoner of GM cnbc_comboQuoteMove('popup_gm_ID0E3IAC15839609');[GM 3.36 -0.13 (-3.72%) ] cnbc_quoteComponent_init_getData("gm","WSODQ_COMPONENT_GM_ID0E3IAC15839609","WSODQ","true","ID0E3IAC15839609","off","false","inLineQuote"); , Alan Mulally of Ford cnbc_comboQuoteMove('popup_f_ID0E3NAC15839609');[F 1.95 0.15 (+8.33%) ] cnbc_quoteComponent_init_getData("f","WSODQ_COMPONENT_F_ID0E3NAC15839609","WSODQ","true","ID0E3NAC15839609","off","false","inLineQuote"); , and Bob Nardelli of Chrysler stupid when they took their luxurious corporate jets down to Washington to beg for bailout money, or is that just how they roll? That said, good for Wagoner and Mulally for offering to take pay-cuts down to $1 a year, that's the kind of thing that looks good. It's the kind of thing that every CEO of every bank that needs TARP money should be doing, or at least every one of those CEOs who hopes to keep his job. So why they heck aren't they?
How is it possible that all of these people who've made it to the top of the corporate ladder do so many stupid looking things? I don't think any of these guys are dumb, maybe with the exception of Bob Nardelli. I think there's such a disconnect between the people at the very top and the rest of us, that they just don't see anything inappropriate about what they've done until the media points it out to them after the fact.

Normally, when America isn't hemorrhaging jobs, CEOs don't have to care so much about the optics of pouring money down the drain. The goodwill of the public only matters when your company is hanging on by a thread and needs a Federal bailout to stay solvent. The thing is, that's where we are now and our corporate leaders don't seem to have gotten the memo.

And why would they know? Who's going to send them that memo? Their board of directors? Please.
Corporate boards are made up of other very-rich people, who often tend to be top managers at different companies, so they're in the same boat as the CEOs, the good ship Clueless and Entitled. They're part of culture that just doesn't think about how the little people will feel when they see you jet-setting around and begging Congress for cash at the same time.

Either this attitude's going to change, or the people on top will. It'll probably have to be both.

 

[siucavflight]

I want to punch this reporter in the face.

 

[TWA]

Sounds like a good investment to me.

 

[BoilerUP]

I sent an email to the kid CNBC writer (he's one of the few younger than me), and simply shook my head at the sensational writing of the NYP.

 

[AA717driver]

The local radio report here in IND mentioned that this airplane "has leather seats".

Should have gone with the velour, Citi...

TC

 

[LRvsH25B]

CNN just hammered Citi as well for the 45M private jet. You and I might not like it, but I had talks months ago on here that this day was coming. Here it is. They should have gotten out in front of this, but they didn't. This article I found was pretty indepth.

http://www.nypost.com/seven/01262009/news/nationalnews/just_plane_despicable_152033.htm

 

[Len]

Citi. That's the company who just "changed their policy" and jacked up the rate on my card by a multiple of 2.4 as thanks for paying all my bills on time. That's MULTIPLE, not percent. Did they find out I got laid off from my great corporate gig?

Fine, I'll just pay it off from my emergency fund or severance package... They could have milked me forever at the lower rate. They can't have my money anymore and I don't want theirs.

 

[Raskal]

CNN just hammered Citi as well for the 45M private jet. You and I might not like it, but I had talks months ago on here that this day was coming. Here it is. They should have gotten out in front of this, but they didn't. This article I found was pretty indepth.

http://www.nypost.com/seven/01262009/news/nationalnews/just_plane_despicable_152033.htm

Exactly, they should have gotten out in front of it. The jet doesn't make them idiots, the way they mishandled the media does.

 

[siucavflight]

Citi. That's the company who just "changed their policy" and jacked up the rate on my card by a multiple of 2.4 as thanks for paying all my bills on time. That's MULTIPLE, not percent. Did they find out I got laid off from my great corporate gig?

Fine, I'll just pay it off from my emergency fund or severance package... They could have milked me forever at the lower rate. They can't have my money anymore and I don't want theirs.

Why would you carry credit card balances anyways?

 

[LJ45]

they should have bought american made jets

 

[Len]

Why would you carry credit card balances anyways?

That was my "education" card. After my GI bill ran out I used it to pay for my last few classes. It was also the "copay" card for my wife's breast cancer. I'm sorry I didn't pay the Citi card off, I'm just another dumb American who keeps a balance. That great coprorate gig I got laid off from was the second great corporate gig I got laid off from in 13 months.

The balance wasn't huge anyway, certainly enough to be annoying though. Is that a good enough reason?

 

[captainv]

Bash the media all you want - this is a home-run story for any news outlet and you'll likely see more in the future.

The core of the story is fact, and buying a $50 million jet when you've received billions in taxpayer-funded bailouts is guaranteed to make you look bad, especially when John Q. Public's life is collapsing around him.

How is this different from DAL pilots putting stickers of Leo Mullin on their flight bags saying "my CEO makes $30,000/day and he wants ME to take a pay cut?" It's about the disparity between them and us.

As for the arguments as to how valuable the CEO's time is, do they really need a state-of-the-art jet? And how much do you think they're going to sell the old ones for, in this market?

I feel bad for the Ford/GM flight departments, but were those flight departments solely large-cabin Gulfstreams? What, they can't suffer riding a King Air for the short-haul stuff?

 

[landlover]

Why would you carry credit card balances anyways?

if you asked me this question i'd tell you to mind your f.......ing business.

 

[BoilerUP]

I feel bad for the Ford/GM flight departments, but were those flight departments solely large-cabin Gulfstreams? What, they can't suffer riding a King Air for the short-haul stuff?

GM operated Gulfstreams exclusively...Ford had a mix of fleet types.

There's much to be said about the efficiencies and economies of scale derived from a single fleet of G350s and GVs, compared to a mixed fleet of Citations, Falcons, King Airs, Hawkers, and Gulfstreams.

 

[Shag McNasty]

So.....if the CEO gives himself a $50 million bonus then he's an a-hole, but if he buys a $50 million jet then that's ok? I'm confused.

 

[TWA]

Why would you carry credit card balances anyways?

Carrying a balance on a credit card while making regular, on time payments positively effects your credit score. It's not about how fast you pay something off, it's about consistently paying something off.

 

[siucavflight]

Carrying a balance on a credit card while making regular, on time payments positively effects your credit score. It's not about how fast you pay something off, it's about consistently paying something off.

I guess so, I have just never talked to someone who had ever carried a credit card balance. It was just a question.

 

[Len]

if you asked me this question i'd tell you to mind your f.......ing business.

You are right but I did put my business out there. I think the dude with the bikini avatar probably just made a flip remark and didn't think about walking in someone else's shoes. No prob here...

Not to hijack the thread anymore. I'm with On Your Six on this one. Well said.

 

[DAS at 10/250]

I guess so, I have just never talked to someone who had ever carried a credit card balance. It was just a question.

What f'ing planet are you living on?

 

[siucavflight]

Sorry Len, was not meant to be a comment that meant anything rude. I meant it differently then what it sounded like. Basically trying to say that you are not gaining anything at all by carrying a balance, pay off the card and be done with it, no reason to give the credit card company more and more money every month. I thought that almost everyone paid off their balances in full every month.

 

[BEfly]

http://www.nypost.com/seven/01262009/news/nationalnews/just_plane_despicable_152033.htm

http://www.cnbc.com/id/28858921

I'm going to get a type rating and put it on my credit card, then I'm going to send them my resume.

 

[Jetdriver69]

My company cancelled our new G550 for the sole reason of propriety. It just wouldn't look good to stockholders and the general public to be spending that much money when our older model GV works just fine. Unlike the automakers or the financials, our company does not have money troubles at all. I'm sure we will pick up a new 550 in a year or two, until then, I'm just glad to have a job.

 

[siucavflight]

Yes, the equipment does not really matter, for the right paycheck I will fly a 150.

 

[johnsonrod]

Wow. This article really is an assault against ALL corporate aircraft (particularly public companies). I hope the NBAA is out in force to combat this public relations nightmare. I feel for those Citi pilots - it ain't their fault...

I guess the article didn't mention that Citi is also trying to sell its two Falcon 900EXs - the combined funds from those sales could go a long way to paying for the 7X (which was ordered years ago). I guess that factoid should not be highlighted...

This is why I continue to watch FOX News - I can't stand the far-left media like CNN, NBC, etc.

 

[LRvsH25B]

if you asked me this question i'd tell you to mind your f.......ing business.

Thank you Landover. You took the words right out of my mouth. Finally, some common sense on this board. He does not owe anyone an explanation as to why he keeps a balance, and why anyone would ask him that is beyond me.

 

[LRvsH25B]

There's much to be said about the efficiencies and economies of scale derived from a single fleet of G350s and GVs, compared to a mixed fleet of Citations, Falcons, King Airs, Hawkers, and Gulfstreams.

Not really. In operations this size, those efficiences are minimal. They're not SWA or Wal-mart. No matter what you are flying, you are going to have Flight and MX training costs, and when you get to jets of this size, class costs about the same for all of them. Your lot of spares is a costs any airplane this size will have as well. You'll pick up savings here and there for volume from that you will for commonality. Any real savings will come during the buying process, as GM took advantage of. They required Gulfstream to make the EVS/HUD system OEM on all planes that were part of the deal. On the 350, that is typically an add-on.

 

[gret]

Citigroup Fumbles Response to Questions About New $50 Million Jet

1/26/09 at 11:20 AM

Comment 5Comment 5Commentsget_comment_count({ container_id: "entry-29348", article_url: "http://nymag.com/daily/intel/2009/01/citigroup_needs_better_pr.html"});

Photo: Getty Images

Did Citigroup fire its public-relations department when it laid off those 50,000 people a few months ago? Among the many problems faced by the beleaguered bank is the fact that no one seems to be managing their image. There was the long Times takedown of the bank in November, which was only officially commented upon ex post facto. Then there was Riskmeister Emeritus Robert Rubin's disastrous defense of himself in The Wall Street Journal, and the long period of dilly-dallying over bonuses. And when, apparently, the Post called to ask the company to comment on their recent decision to purchase a new $50 million jet, a Citi employee responded like a petulant child.

"Why should I help you when what you write will be used to the detriment of our company?" replied Bill McNamee, head of CitiFlight Inc., the subsidiary that manages Citigroup's corporate fleet, when asked to comment about the new 7X.​

"What relevance does it have but to hurt my company?"​

Okay, it kind of blows our mind to do this, but in the interest of the hundreds of thousands of other people employed by Citi not losing their jobs, we'll give Bill a few tips on what he should do should he receive another call from the media.

1. When a paper calls for comment, don't look at it as helping them. Look at it as helping yourself. For instance, giving a quote that makes your company sound guilty as all hell and like you've been totally busted doing something wrong is a bad idea. Presenting a few reasons for why the company deserves a new jet when it is laying people off and its stock price is scraping the bottom? Much better.
2. Regarding relevance: Try to imagine yourself in the time and place in which we all exist. Might the Post have another reason for asking about Citigroup's $50 billion bailout, other than the fact that the Post is mean and wants to "hurt your company"? Might the public in fact have an interest in the matter, due to the $350 billion taxpayer-funded bailout of "your" company? It's "our" company now, Bill. Spin that around in your little noggin.
3. Try not to cry, Bill. No one respects a crier.

 

[LRvsH25B]

Wow. This article really is an assault against ALL corporate aircraft (particularly public companies). I hope the NBAA is out in force to combat this public relations nightmare. I feel for those Citi pilots - it ain't their fault...

No, it's not. When your company is so big that it's failure would cripple the US economy, and you manage to fukc that up so badly that you need over $45B in bridge money from TAXPAYERS, then you don't deserve to continue operating that business in the manner in which you were when your company failed just becasue you were greedy and made questionable investments. Clearly your way of operating doesn't work. Greed Greed Greed.

I guess the article didn't mention that Citi is also trying to sell its two Falcon 900EXs - the combined funds from those sales could go a long way to paying for the 7X (which was ordered years ago). I guess that factoid should not be highlighted...

Selling those aircraft is going to do nothing for them. Have you seen the used aircraft market? If they sell them anytime soon it'll be at a huge loss. Just too many of every type of jet on the market.

This is why I continue to watch FOX News - I can't stand the far-left media like CNN, NBC, etc.

Watching Fox News won't will do for you what selling those jets will do for Citi; Nothing. I love Fox News, and guys like Rush, and Hannity; their ignorance allows Democrats to move forward. Did you not pay attention to the Elections of ;06 and '08? The American people are tired of the right-wing lies, being broke and unemployed, not to mention having their patriotism questioned just because their view differs from someone else's. Americans continue to express their displeasure in all these areas in the election booth. A Heck of a lot of Republicans voted for Obama; why do you think that is?