Detroit CEOs fly private jets to Capitol Hill beg-fest
Earth to the not-exactly-Big 3 CEOs: When you fly to Washington to beg for an industry bailout, do yourselves a favor and leave the corporate jet at home. ABC News has thrown Rick Wagoner, Alan Mulally and Bob Nardelli directly under the bus, reporting that each exercised costly private jet perks for their joint appearance before Congress instead of setting an example by flying commercial.
In his taped report, ABC's Brian Ross points out that Wagoner's round-trip on the company G4 cost approximately $20,000. A first class, round-trip commercial ticket from Detroit would have instead cost around $900 (multiplied by however many people Rick had in his entourage). Ross questioned Wagoner about his using the jet as he was leaving the hearing. The GM CEO replied that it was used only for "urgent situations." Alan Mulally also flew private, presumably on the same Ford-owned jet that ferries him and his wife home to Seattle on the weekends. No details were given on Nardelli's travel specifics, other than that he too arrived on a private jet.
We understand that these are perks many CEOs enjoy, but when you're about to stick your hand out for billions of dollars, it might help to suck it up and slum it in First Class like the rest of us. Oh, wait. Of course, the first class cabin on a Northwest Airlines jet isn't as optimal for perfecting your presentation as a private, flying boardroom. On the other hand, a commercial flight would let the three CEOs all fly together so they can get their sob stories straight. Hang on to your wallets, everyone.
[Source: ABC News, Photo by Mark Wilson/Getty]
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Reader Comments (Page 1 of 8)
TJ 11:35AM (11/19/2008)
Quick! How many different, yet equally unimportant and duplicitous posts can we have about the topic! Lets bump the hit counter!
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Librapaj 11:47AM (11/19/2008)
I think you are missing the point here. I think everyone understand that their jobs merit some perks if not alot of perks. But when you are on the cusp of you company going farther under than Australia, maybe giving some of these perks up would show at least a little bit of compassion on your part. Would it have killed them to fly commercial just this one instance to show that they are trying to do a bit part in righting the ship. yes, flying commercial is not going to do anything to save their respective companies, but it would definitely have some meaning and show them as being maybe a bit human. As ridiculous as that sounds, it looks even more ridiculous when they say their companies are about to collapse yet they can't make the simple sacrifice to give up their corporate jet and fly commercial.
Marc-O 11:48AM (11/19/2008)
A US-based automobile enthusiast blog talking about the domestic auto industry crisis a lot ? NONSENSE !
TJ 11:50AM (11/19/2008)
Librapaj, I think you misunderstand. This blog entry adds nothing above or beyond the post two or three below it.
Librapaj 11:54AM (11/19/2008)
Ummm I think ti does. The previous post was about how Nardelli was willing to cut his salary to a 1.00. Obviously he just missed comedy hour at the improv..
This post was made to show how these morons are begging for cash, yet they still decided to fly on a private yet for their begging for money meeting with congress.
So let's see, two posts, two different topics.
Oh no you are right, Nardelli was overheard screaming that his flight was cheaper because a put a dollar toward it so his flight was only 19,999.
Robert 12:18PM (11/19/2008)
I propose we not be so STUPID and look at why a private jet may actually be more productive.
How much work can you do on an airplane? What about standing in a security line? Even if you are skilled, you lose about an hour or two on each side of a flight - not to mention that you have to travel on the airline's schedule. If the CEO of your company makes decisions that are worth, say, $1 billion per year, that's $100k per hour that he exists - including hours that they are sleeping. Take those out, and we're at $150k per hour.
If you lose two hours to commerical airline traffic, it can cost your company $300k. Not to mention that on most airlines, you no longer have a phone to call on or internet access, which you can get on a private jet.
We always just think about strict dollar signs and don't think about the more important factor - productivity.
I hate this entire debate about the automakers not because it doesn't need to happen but because it is being undermined by arguments that don't actually go deeper than the surface.
TJ 12:19PM (11/19/2008)
Libra... you didn't read the comment section on the other thread, did you?
Polly Prissy Pants 12:37PM (11/19/2008)
If you watch the video:
http://abcnews.go.com/Blotter/WallStreet/story?id=6285739&page=1
you see Mullaly get out of his private jet and hop into a Lexus. A Lexus. By himself, no posse tagging along. Unbelieveable.
Mike 1:38PM (11/19/2008)
Polly,
That was most likely an old video of him when he first started with Ford, he owned a Lexus at that time.
The media likes to spin lots and lots of things, that's what attracts viewers and makes them money.
Chase 2:16PM (11/19/2008)
To put it into different light, these loans aren't much different from the tax handouts that have been going on for years now. Its money that is going into the pockets of Americans, even the ones that aren't so productive or contributing to society. The CEOs will only be getting a small portion of the pie, even considering their outlandish habits.
Daniel 2:21PM (11/19/2008)
These three couldn't pour piss out of a boot with the instructions written under the heel.
And they want me (and 300 million other Ameicans) to give them some money?
OK - I got it. Give the Big 3 the money - but stipulate that the top level executives and the board members have to go and go without a golden parachute. Then select people at random out of the phone book to replace them.
I have no doubt the new bosses would do a better job.
catgirlshyla 4:11PM (11/19/2008)
Hey you CEO's, guess what?
There's this invention, called the Boeing Business Jet...BBJ for short. Can fit all you three and your cronies in comfort and style. All of you can get your stories straight and whatnot.
Boeing is doing fine, and they don't need bailouts....learn from them!!
elprogramer 4:54PM (11/19/2008)
^Boeing regularly relies on contracts from the Federal Government.
stevefazek 6:44PM (11/19/2008)
Well lets see by that example saying the CEOs time is worth 100k an hour lets say this. They lost billions of dollars a year through their mismanagement. So i say keep them away from the company as long as possible send them via Mule with no black berry that would save the company billions in losses
jozilla 11:37AM (11/19/2008)
lol big 3 fail
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Kotse 12:07PM (11/19/2008)
The Big 3 "Stooges" begs for taxpayer billions..runs automobile poorhouses....but jet sets in style!
Believe It or Not!
Torrent 11:37AM (11/19/2008)
I hope everyone that runs the Big 3 all die simultaneously so they can start fresh like they did 100 years ago.
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The Luigiian 11:46AM (11/19/2008)
Except Mulally.
Torrent 11:50AM (11/19/2008)
yeah. I like Mulally. Mulally stays. The rest need to perish.
Tim 1:03PM (11/19/2008)
Every employee that works for GM run the company along with every supplier and dealer, without them there is no GM. You are an ass if you want millions of people to die. Maybe you should put a gun to your head after killing off all your family and friends.