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Just Plane Despicable: 'Rescued ' Citi Buying $50M Jet
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| SSSanchez |
http://www.nypost.com/seven/0126200...able_152033.htm
Beleaguered Citigroup is upgrading its mile-high club with a brand-new $50 million corporate jet - only this time, it's the taxpayers who are getting screwed.
Even though the bank's stock is as cheap as a gallon of gas and it's burning through a $45 billion taxpayer-funded rescue, the airhead execs pushed through the purchase of a new Dassault Falcon 7X, according to a source familiar with the deal.
The French-made luxury jet seats up to 12 in a plush interior with leather seats, sofas and a customizable entertainment center, according to Dassault's sales literature. It can cruise 5,950 miles before refueling and has a top speed of 559 mph.
There are just nine of these top-of-the-line models in the United States, with Dassault's European factory churning out three to four 7Xs a month.
Citigroup decided to get its new wings two years ago, when the financial-services giant was flush with cash, but it still intends to take possession of the jet this year despite its current woes, the source said.
"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?"
It's not uncommon for large companies to pay a deposit on a new plane then cancel the order before delivery, according to a source in the corporate aviation business.
Citigroup execs are also quietly trying to unload two of their older Dassault 900EXs.
Those jets, nearly 10 years old, are worth an estimated $27 million each. They were still listed for sale yesterday on the Web site of Citigroup's aviation broker, Aviation Professionals.
A company representative said she would not comment on "brokering both sides of the deal" when asked about the incoming Falcon 7X.
The Dassaults are part of CitiFlight's Gulf Sierra fleet, which includes the two Falcon 900EXs, tail numbers N399GS and N588GS, currently for sale. FAA records show Citigroup reserved a new tail number, N488GS, possibly for the incoming 7X on Nov. 10 last year.
A woman answering the phone at CitiFlight's private hangar in White Plains said she was "not authorized to release information" about the new jet.
Dassault's US sales office declined to comment.
Citigroup spokesman Stephen Cohen declined to comment.
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| VERTiG0 |
| Hell yeah, jets are sweet |
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| ChemEnhanced |
| Who hasn't wasted a little money the government gave them? |
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| Skipper |
| I have a hard time believing that jetliners ordered 2 years in advance can be cancelled at the drop of a hat. |
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| exstasie |
| quote: | Originally posted by Skipper
I have a hard time believing that jetliners ordered 2 years in advance can be cancelled at the drop of a hat. |
+1
I dont' think so either, especially not with out some kind of financial penalty, and at that point, it would have been smarter just to buy it.
Bloomberg did suggest though that they found some Russian tycoon and get them to buy it off of them for like $45M. Win-Win for everyone!
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| Skipper |
| Russian financiers are even worse off than the Americans right now. |
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| activate |
i doubt isn't that easy to just cancel an order on a product that costs $50 mill, if they're also in the process of selling two older models.. which no doubt have a higher fuel consumption to boot.. wouldn't it make more sense to go that route? they'd make a couple of mill on the deal if they got what they're worth.
and more importantly, we're canadian so who gives a |
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| Sentinal |
I'm so glad I'm leaving this piece of company in a couple weeks. Their volume of business in our department is down 22% from this time last year.
The company has too many cheifs and not enough indians. pardon the term. But the whole who cares cause we are Canadian thing. All our rules and corporate policies come from NY. There was no bonuses, raises, Christmas party or year end performance initaitive.
We did all however have 57,000 of our coworkers let go, 2 departments in Toronto moved to India, and half our sick days taken away. Citi and everything they stand for. But enjoy your new toy plane Vikram you disorganized piece of dog.
Sorry for the rant. Good job while your looking for another job I guess. |
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| SSSanchez |
It's the optics of the purchase: You cry for $45B in aid? Why Dassault's? I'd go for a Global Express or Gulfstream 550.
Sen. Carl Levin has come out with a statement already:
http://levin.senate.gov/newsroom/release.cfm?id=307295
Levin Statement on New Citigroup Corporate Jet
WASHINGTON – Sen. Carl Levin, D-Mich., said the following today regarding Citigroup’s reported plans to purchase a new $50 million corporate jet:
“The notion of Citigroup spending $50 million on a new corporate jet, even as it is depending on billions of taxpayer dollars to survive, does not fly.
“To permit Citigroup to purchase a plush plane – foreign-built no less – while domestic auto companies are being required to sell off their jets is a ridiculous double standard.
“I have urged Tim Geithner, who will presumably be Treasury Secretary by the end of the day, to do what he can to stop this absurdity from occurring, and I am assured he will look into the matter promptly.” |
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| Yohan |
| Order was put in place TWO YEARS AGO |
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| SSSanchez |
Speaking of more bling...here is an interesting factoid.
Alvarez & Marsal is currently completing the sale of Lehman Brother's assets. Lehman Bros could have easily operated a small airline with the no. of aircraft in their fleet.
Look here (page 21):
http://sec.gov/Archives/edgar/data/...1409_8ke991.htm
It reveals:
12 jets and 1 helicopter valued at $164 million that includes the sale of a Gulfstream IV (valued @ $21 million) the month before + $15 Million of rights on Netjets (jet sharing program).
2001 Gulfstream IV-SP, 1987 Dassault Falcon 50, 4 Boeing 737s! Why a 737??
A brand new 2008 Gulfstream 550, 1995 Gulfstream IV-SP, 3 Bombardier CRJ 200s and one Boeing 767 ! A Boeing 767 seats like 250 people! Why such a large plane? Add to this a Sikorsky S-76C helicopter that Dick Fuld used to travel from home to work. ..ontop of all the other luxury items (Maybach cars and whatever he collected) + $30 Million in artwork.
Gulfstreams are not cheap... |
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| SSSanchez |
| quote: | Originally posted by Yohan
Order was put in place TWO YEARS AGO |
So was the G550 from Lehman Bros. |
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