• Nov 8, 2010
It wasn't too long ago that General Motors was fending off a heap of public ire over the company's use of private planes. Now it looks like The General is back to eschewing commercial flight in favor of taking to the wild-blue yonder in chartered craft. According to The Detroit News, GM has been sending executives to Europe, Canada and various locations within the U.S. in order to promote the company's stock for an upcoming IPO. In most cases, the workers have travelled by private aircraft.
GM says that under the expense policy approved by the federal government, the company is allowed to charter planes when there's a business case for doing so. Additionally, the automaker says that the tour to drum up investors warrants such flights because of the tight time table involved. With GM doing its best to make sure that it will be able to buy back enough of its stock to take a controlling interest in the company away from the federal government, chances are we won't hear too many Congressmen complain about the private flights this time around.

[Source: The Detroit News]


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  • 22 Comments
      • 4 Years Ago
      For crying out loud.

      Using private planes saves time and money. Why? They don't have to show up 2 hours early, go through security, wait for a delayed plane, probably take at least one connecting flight, wait for their luggage when they get there, do the whole thing again when they go back.

      Private plane lets them get there 15 minutes before take off and GET WORK DONE DURING THE FLIGHT. They get off the plane, walk 5 feet, get their luggage, walk 10 feet, get in a car, and leave.

      I'd much rather they use private planes because while I am jealous that they use them, I don't let it influence my judgement.
        • 4 Years Ago
        Considering the track record of the former GM management team (or most corporate mgmt teams), having them sit in airports doing nothing would probably be a net positive for the business.
      • 4 Years Ago
      Nearly all "roadshows" for large companies require private planes. The underwriters demand them.
      • 4 Years Ago
      So here is the big question.

      How on earth will these executives convince potential investors that GM is now health, things are different, that GM has corrected their problems.

      I see little change other than now the UAW is a major share holder. That one change would keep me from investing.
      • 4 Years Ago
      A non-issue.
      • 4 Years Ago
      Haha, totally out of place on Autoblog, and probably not proper journalism, but I'll be damned if the Congressman comment wasn't funny. So sad, so true.

      • 4 Years Ago
      That's nothing compared to the $45 billion in tax breaks.

      No worries, the Federal Reserve will just keep printing money. sarcastic comment
        • 4 Years Ago
        And yet a random person on an auto blog like you becomes such and expert when cutting and pasting stories.

        I know your still sore from your beating last week. Try and use some ice and get the swelling down before it happens again in '12.
        • 4 Years Ago
        Luis - The war in Iraq officially ended in August. FYI

        • 4 Years Ago
        We still have and fund 50k+ troops there. Not to mention staff of other Federal agencies like the CIA, and support staff. Plus, we're still funneling massive amounts of money and supplies to Iraq. It's not over.
        • 4 Years Ago
        As we still wage two wars.

        And fight over a 3.5% tax cut for millionaires.
        • 4 Years Ago
        Question, are you saying if we bring all those troops home, all the cost for our military go away?

        Don't think so. We will still be funding them, but on USA bases instead of Iraq bases.
      • 4 Years Ago
      I didnt have a problem with GM using private planes. But I did think it was rather funny for them to drive a car to Washington to beg for my money.
      • 4 Years Ago
      GM executives flying on chartered flight is a non-issue. GM *owning* a fleet of aircraft on the other hand, would be cause for concern.

      When every minute of a person's working day is highly valuable, you don't waste them sitting at an airport for two hours waiting for a commercial flight.
        • 4 Years Ago
        +1

        Every medium or greater sized IPO uses corporate aircraft to move execs from broker to broker to pump up the market and push the initial stock value. Restricting GM execs from this advantage would be shooting ourselves in the foot, since we're all stockholders. You simply can't do this trip without a private aircraft.
        • 4 Years Ago
        Alex is right. And from conversations with friends in the IB industry it sounds like a road show would be much more difficult if you were flying commercially. Like it or not, you're invested in GM so you might as well hope they succeed.

        And besides there is no need to punish the current execs for the sins of executives past.
        • 4 Years Ago
        Exactly, when you're paying a guy $5-6K an hour then I'd rather his ass be working instead of sitting in an airport.
      • 4 Years Ago
      Have we really gotten this desperate to create false populist outrage? There is a big difference between Old GM going to Washington in private jets that they own to beg for taxpayer money and New GM chartering a plane in an effort promote their IPO.
      • 4 Years Ago
      I went public with a very very minor company and our execs chartered a plane too.

      When you do the roadshow (dog and pony show if you wish to be more negative about it), you can end up doing 3 meetings a day for a week or two straight. That's really hard to do using commercial flights. You really need to be able to set your own timetable.

      This is a legit use for private planes and it might even save money with the number of flights and people they have on there.
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