Sale of Corporate Aircraft Not a Good Use of Automaker Shareholder Money
By: Lapayowker Jet Counsel
Business Aviation, Thoughts for the Day
With Senators blasting the automakers about using corporate aircraft to transport their executives to Senate hearings, it will be interesting to see whether the automakers include the liquidation of their fleets in the economic plans due to Congress on December 4, 2008. The ironic thing about it is that if disposing of their fleets is part of their plans, the aircraft will be sold at tremendous losses in light of the current aircraft sales market resulting in multi-million dollar losses to shareholders. The loss of value to shareholders would likely finance the use of the aircraft for the next several years. The reasons for having corporate aircraft have not changed – executive security, immediate access to senior executives, increased productivity and an ability to reach areas of the country (or the world) not easily reached by commercial carriers. To be pressured into selling into a downward spiraling market in order to obtain government funding seems absurd at best.