GM flying private jets again

[earhart]

Let me this preface by saying I fly a for an oil company; the company can afford multiple aircraft and they are very useful tools for the business and I am very happy to be employed in a job I love.

But I have been told that extensive feasibility studies have been done over many years and at no time, for us, is a corporate aircraft financially justifiable vs commercial aircraft. It's just a fact for us and I would think most private operators.

On paper it doesn't work BUT, the convenience, privacy, security and time value alone are invaluable to the company and our senior executives. Sometimes you cannot justify everything on a spreadsheet.

As an aside, we once acquired a G-III (during the buyout of another company) for the princely sum of $1!

 

[Gulfstream 200]

A couple years ago I had this 5 day road show from hell. up early every day and had 2 - 4 stops each. no fun at all, but that is charter. on the last leg these guys and gals were drinking and having a good old time in back. we land and the lead guy is chatty cathy with us and gives a real nice tip. then tells me that the 30,000 or so they spent on the trip was nothing compared to the 10's of millions they made by doing all the meetings at once, they got to all the meetings and didn't lose there bags. and between the meetings they were able to have their own meetings on the aircraft.

This was a typical scenario 4-5 years ago when the economy was flying (literally) Not so today.

Nobody cared about GMs (or insert another big evil corporation) planes back then. Everyone was employed and spending. That changed and people needed someone to blame...on top of that we have a President/Congress who fueled the stupidity. Of course this was not hard when Mr GM shows up to get on the GVT tit in his own GV. Spectacular. Other places knew how to do the dance and stay low.

Anyhow - hopefully things continue to slowly improve. I dont care how they use the F'n planes, I'm just a driver and just want to see myself and my friends continue to have decent jobs. CEO's dont lose their life savings when they get laid off.

 

[stupidpilot]

This was a typical scenario 4-5 years ago when the economy was flying (literally) Not so today.

Nobody cared about GMs (or insert another big evil corporation) planes back then. Everyone was employed and spending. That changed and people needed someone to blame...on top of that we have a President/Congress who fueled the stupidity. Of course this was not hard when Mr GM shows up to get on the GVT tit in his own GV. Spectacular. Other places knew how to do the dance and stay low.

Anyhow - hopefully things continue to slowly improve. I dont care how they use the F'n planes, I'm just a driver and just want to see myself and my friends continue to have decent jobs. CEO's dont lose their life savings when they get laid off.

well said.

 

[BoilerUP]

A small business in our area is looking to start up a flight department with an airplane similar to ours, and very early on in their due diligence for ownership that company's CEO met with my boss to discuss the "ownership" side of having a corporate jet.

The CEO asked my boss how he financially justified owning a new jet, and my boss literally laughed at him and said "Justify? Hell you can't financially justify it! The question you have to ask yourself isn't 'How can I financially justify it?', but rather 'Can I effectively run my business without it?' All that money you'll spend buys you time. Next time you're stuck in Houston or Atlanta with a delayed or canceled commercial flight and miss a meeting with a current or potential client, think about how much your time is worth to you and your firm."

Perspectives like that, and the new reality of having a TSA agent look at nudie backscanner pictures of you or getting your testes felt up in an "enhanced patdown", are going to get more individuals & companies looking into ownership IMO.

 

[con-pilot]

A small business in our area is looking to start up a flight department with an airplane similar to ours, and very early on in their due diligence for ownership that company's CEO met with my boss to discuss the "ownership" side of having a corporate jet.

The CEO asked my boss how he financially justified owning a new jet, and my boss literally laughed at him and said "Justify? Hell you can't financially justify it! The question you have to ask yourself isn't 'How can I financially justify it?', but rather 'Can I effectively run my business without it?' All that money you'll spend buys you time. Next time you're stuck in Houston or Atlanta with a delayed or canceled commercial flight and miss a meeting with a current or potential client, think about how much your time is worth to you and your firm."

Perspectives like that, and the new reality of having a TSA agent look at nudie backscanner pictures of you or getting your testes felt up in an "enhanced patdown", are going to get more individuals & companies looking into ownership IMO.

Yes, I agree, in fact I'm still a bit puzzeld as to why those who can afford an aircraft, still use the airlines in this day and age of 'enhanced security'.

 

[Freight Dog]

Yes, I agree, in fact I'm still a bit puzzeld as to why those who can afford an aircraft, still use the airlines in this day and age of 'enhanced security'.

Don't worry... give TSA some more time.

 

[svcta]

The CEO asked my boss how he financially justified owning a new jet, and my boss literally laughed at him and said "Justify? Hell you can't financially justify it! The question you have to ask yourself isn't 'How can I financially justify it?', but rather 'Can I effectively run my business without it?' All that money you'll spend buys you time. Next time you're stuck in Houston or Atlanta with a delayed or canceled commercial flight and miss a meeting with a current or potential client, think about how much your time is worth to you and your firm."

The meaning behind what your boss was saying is all about money. Saving a day in wasted travel time is absolutely increasing productivity. It's like having a sales guy and not spending the money to give him the materials needed to go sell your product. Sure, those materials cost money, but you can't make any if you don't spend it.

A quote from Warren Buffet: “Berkshire has been better off by me having a plane available to go and do deals or whatever it may be. A lot of times it doesn’t work out. But net, it’s a plus. We have done things I wouldn’t have done if we hadn’t had a plane. "

 

[Shag McNasty]

GM flying private jets again

http://www.nytimes.com/2010/11/04/business/04jets.html?_r=1

News Flash: They never stopped flying private jets. Gulfstream V serial# 550 and 551. N5101 and N5102 have been owned and operated by GM since 1999.

 

[AA717driver]

There is NO WAY the guy I flew for could have had HALF the productivity he did by using the airlines.

10 day 'round the world trips where we'd fly every day and he'd do business every day--none of this languishing in Phuket for a week (ok, well, sometimes that happened...).

But, a corporate aircraft IS a necessary tool/evil (which of those it is depends on whether you are a deal maker or a bean counter). If a CEO screws it up by flying it to Gstaad or Nice too often is his/her failure.

TC

 

[flyboyzii]

A condition from GM's owner (Obammy) is that all aircraft are required to have Obama's "logo" & face painted on the tail of every a/c just so they remember who owns them now.

 

[Lynxman]

Has anyone also thought about the tax advantages of ownership?

 

[rigger]

A condition from GM's owner (Obammy) is that all aircraft are required to have Obama's "logo" & face painted on the tail of every a/c just so they remember who owns them now.

Based on todays business news they gonna have to paint the picture of Mou Se Tung! China buying a big stake in them! WTF