Congress is taking a hard look at Detroit’s autos these days. But what about Detroit’s jets?
When the chief executives of Ford and General Motors flew in to Washington yesterday to ask Congress for a $25 billion lifeline, they didn’t fly coach.
General Motors CEO Rick Wagoner arrived on his company’s cushy Gulfstream IV, ABC News reported. Ford CEO Alan Mulally flew in on a private company jet as well.
It costs about $20,000 to fly one of these jets round trip from Detroit to Chicago — far more than the $900 cost of a first-class ticket on Northwest Airlines, ABC said.
Wagoner told ABC he took the private jet because he’s a busy guy. Mulally declined to comment.
It’s not exactly news that corporate fat cats prefer to fly in style. And assuming all eight seats on the G4 were taken, the private jet only cost about $13,000 more than flying commercial.
But it might not be the best move by Big Auto as it tries to convince Congress that a $25 billion bailout would be money well spent. The two have already been criticized for their generous pay packages ($22 million for Mulally in 2007, $15.7 million for Wagoner).
What do you think? Is this a tempest in a teapot, or further evidence of Detroit’s poor business practices?
For more Reuters political news, click here.
Photo: REUTERS/Kevin Lamarque (Auto industry leaders testify in Senate on Nov. 18)
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The problem is that most of congress flies around on private jets as well. Mostly paid for by lobbyists. Just job security for pilots like myself.
- Posted by ScottHere we go again… this “fat cat jet” stuff is just too easy to pick up and run with. I don\’t make it a habit to defend the out of date, Detroit mindset; but if I owned the company and a group of top execs were flying somewhere, I would want them to be in touch, and working during the flight, instead of at least a half day of downtime flying commercial requires. Add in the security situation, and no “papparazi scenes” at the airport, and it’s money well spent.
- Posted by JaredAgain, the infuriating part of all of this is that we are re-hashing the same set of arguments about bailing out the automotive industry that we had with the banking industry. The primary difference in the decision seems to be that Congress prefers to bail out Wall Street and the upper class, rather than working class industry.
- Posted by Jimit’s not about jets!
- Posted by CraigThese men should know, they need to earn the confidence of the public with example and product.
No one made the connection!
Sounds like they should be walking home.
Craig
We should do to the Big 3 what the World Bank does to 3rd world countries when they are dumb enough to borrow from the World Bank. We should make them “Structually Re-adjust” that is to make them miserable for taking the money. These 3 failures should be sent packing and all executives should be paid on the U.S. Governments pay scale. If they don’t except the terms then they should go home empty handed.
- Posted by TarroWhere is the Money for this Bail Out coming from anyway, I keep hearing I’m getting a tax cut. LMAO
In this post 9-11 America another consideration they travel on private corp jets is executive protection/security concerns I would image. Of course you wouldn’t expect Rick Wagoner to mention that reason when he is glibbily asked the question by the MSM.
- Posted by arline carmichealThere are businesses all around our city that are failing that have taken the right steps through the years. Where is there bailout? It is pretty sick that the big three have made huge mistakes and continue to do so as they please. Then they get rewarded with a bailout. This is the reason I have not purchased a big three automobile in the past 5 years, and will not do so in the future. Bailout the failure. Way to teach the future of America.
- Posted by RobertThese fatcat imbeciles have no business getting any public money. They’ve sorely mismanaged their respective companies and deserve to take it right on the chin. Mulally is only now talking about taking Ford into the 21st Century. My gosh, Ford Motor Company should have been doing this in the latter half of the 1990s. These executives are out of touch, they’re not up to the task of looking after anything but their own portfolios, and I believe are interested only in feathering their own nests. They say the economic downturn that’s frozen up the credit market was unforeseen? Not by a long-shot. Surely these execs have the cash to subscribe to http://www.trendsresearch.com/index.htm. If they had, they would have known about this a least a year ago, and they could have planned for it.
- Posted by ArtI think that they should be allowed to go bankrupt. “We the people” are so disgusted with greedy arrogant bloated white guys and their assumed entitlement. If the failure of these companies can shake these leeches loose from draining the faith of the street in our economy then we may have a chance at a rebound. The return to health of our economy would benefit from the surgical removal of the most malignant cancerous parts of Corporate America; if you can even call it that anymore; it’s more like Corporate Greed. The sad reality is that this endemic corruption is now so rampant that our economic strength has been reduced to swiss cheese. We criticize and look down on countries like Mexico for being corrupt; when in fact, they could learn what true institutionalize corruption is really all about if they did a quick study right here in the good ole USA. I say….”Off With Their Heads!!!” Sincerely yours, Martha Keats
- Posted by martha KeatsJust another example that those at the top exist in a different reality, trickle down like hell.
- Posted by Tyler MucklowJust another day in the life of the super rich. “I’m a busy guy,” says Wagoner. WE ARE ALL “BUSY GUYS!” None of us really have the luxury of time to waste hours in an airport.
I guess Mr. Wagoner had to make sure he didn’t miss out on his lunch of foie gras and beluga caviar, by sitting in an airport terminal for 2 hours.
These guys are asking you and I, who can barely afford the groceries to feed our families each week to subsidize their stupidity.
First, all of these executives should be fired, and all of the pay that they have been ‘given’ during each of their unprofitable quarters should be seized.
Then, the UAW should be broken up. They have a corrupting influence over the whole process.
Then each Senator and Representative for Michigan should be expelled from congress, and new Congressmen should be elected, because the ones they have now are squarely in the pockets of the Auto Industry.
After that, maybe we can talk about loaning GM, Ford, and Chrysler some money. But it should be at about the 25% range that companies such as GMAC charge their credit card customers.
Taxpayers say no to bailouts!!!
- Posted by KeithPlanned obsolescence has finally rendered the big 3 obsolete. I think I’ll buy a Japanese product next time, you know, something I can count on.
sjb
- Posted by Steven J. BetoIf the fat cats get bailed out, I will never buy a car from the big three ever again. They can stuff it as far as I am concerned and that goes for their union reps too.
- Posted by JohnConsidering that at 22 mil, he makes over $10,500 an hour, it is far cheaper for the company to use the private jet. It would take many more hours to fly commercialy than from thier corp jet. The press knows this, the reporter is just trying to stir you up.
- Posted by RussWhat else would you expect, these guys don’t have a clue. Trim the fat, cut the salary, bonuses, and perks before they can even get an audience to ask for taxpayer money!
- Posted by DougThe private jet situation cuts to the core of the problem with Detroit. So does the CAW and UAW announcement today that they have no intention of giving up any pay or compensation to alleviate a crisis of their own doing. While the Detroit executives pad their wallets and sip champagne on their private jets, compare this to the CEO of Japan Air Lines. Until JAL gets out of financial difficulty the CEO is eating in the cafeteria with the workers, got rid of his company car and bought a used Toyota, and reduced his pay to $1 a year. Quite a difference from the pigs at the trough we have here in America — who deserve nothing. Let Detroit go bankrupt. Why should we taxpayers support their arrogance and incompetence? It will NEVER change.
- Posted by turismoI don’t know how these arrogant CEO’s and their
colleagues can sleep at night regarding their
greed and disrespect for the common folks. These
are the folks who have supported the automakers
by purchasing their products. Now these same folks are loosing their homes and vehicles.
Of course, I am sure that these top execs could care less
- Posted by Judithabout anyone but themselves. Mallaly lives in
Seattle and commutes to his job each week by
private jet. How sad — such greed, such a disgrace!
Why don’t they just give the people with little money to just buy a car from one of the Big three and turn in there old one’s.I see it could help jump start some if not all three of the big three.
- Posted by AugustNo bailout should be given out to the auto industry nor the banks. Generating money out of thin air and throwing it at failing businesses will only prolong the inevitable. American industry needs to stop outsourcing, reinvest in the worker and American ingenuity, and fire and hold accountable crooked execs and their bloated excesses.
- Posted by Walker StemmonsTruly, yet another example of executives receiving grossly inflated pay and perks for mismanaging their companies.
- Posted by David