Late last year, Rick Wagoner, Bob Nardelli and Alan Mulally each climbed aboard their own company-provided private jets in lieu of commercial flight – or, alternatively, one of their company's own vehicles – to go before Congress and ask for a bailout. In the public eye, at least, that move was – to put it mildly – a mistake.
At least one chapter of the so-called JetGate scandal now appears set to come to a close. Chrysler has reportedly asked its bankruptcy judge to terminate the leases the automaker holds on its $38 million Gulfstream 450 and $55 million Gulfstream 550. Chrysler first leased the jets back in 2007 and subsequently took delivery on January 1, 2008.
A hearing on the issue has been set for June 3, but we wouldn't expect there to be any real holdup. After all, the debtor-in-possession financing that Chrysler received from the U.S. and Canadian governments stipulated that the automaker would give up all corporate aircraft.
[Source: Detroit News | Image: Gulfstream]