This time round, the chiefs of Detroit’s big three automakers arrived in the nation’s Capitol like supplicants – transported in hybrid cars, rather than private jets.
Rick Wagoner of General Motors Corp. offered lawmakers a list of austerity measures – among them, the planned shuttering of GM’s corporate aviation services.
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After being skewered by Congress and even by Saturday Night Live last month, Alan Mulally of Ford Motor Company had already announced plans to sell his company’s fleet of five corporate planes (although his pay of $22.8 million last year included $752,203 for his personal use of a corporate jet).
Turns out, though, neither company’s move may bring in significant cash, reports Dealscape. The reason: the market is flooded with jets recently put up for sale by dozens of squeezed corporate chieftains.
Troubled banking giant Citigroup has quietly put up two planes for sale – luxuriously-outfitted Falcon 900EXs, according to online advertisements and public records. While the planes’ asking prices are not listed, similar aircraft are advertised for $30 million, according to CNN.
The problem is the sudden upsurge in supply has meant falling prices for everyone.
In a hearing in U.S. Bankruptcy Court in Manhattan on Wednesday, Lehman Brothers sought approval to sell one of its corporate jets, a Dassault Falcon 50, for the apparently bargain-basement price of $6.2 million.
In its motion to the court, Lehman blamed a saturated market for the low price. The failed investment firm said it had been marketing the jet since September. But as time passed, the plane’s valuation only fell further.
“[Lehman] is aware of at least 38 Falcon 50 aircraft being actively marketed – more than a two-year supply at the current pace of sales,” the bank said, noting that even more were “being more quietly marketed.”
The court rubberstamped the sale.
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