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By JENNIFER KEIL and CHUCK BENNETT
STILL 'HIGH' ON THE HOG: Citigroup, fresh off its $45 billion rescue, is going ahead with the purchase of a Dassault Falcon 7X.
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Last updated: 1:22 am
January 26, 2009
Posted: 1:02 am
January 26, 2009
Beleaguered Citigroup is upgrading its mile-high club with a brand-new $50 million corporate jet - only this time, it's the taxpayers who are getting screwed.
Even though the bank's stock is as cheap as a gallon of gas and it's burning through a $45 billion taxpayer-funded rescue, the airhead execs pushed through the purchase of a new Dassault Falcon 7X, according to a source familiar with the deal.
The French-made luxury jet seats up to 12 in a plush interior with leather seats, sofas and a customizable entertainment center, according to Dassault's sales literature. It can cruise 5,950 miles before refueling and has a top speed of 559 mph.
There are just nine of these top-of-the-line models in the United States, with Dassault's European factory churning out three to four 7Xs a month.
Citigroup decided to get its new wings two years ago, when the financial-services giant was flush with cash, but it still intends to take possession of the jet this year despite its current woes, the source said.
"Why should I help you when what you write will be used to the detriment of our company?" replied Bill McNamee, head of CitiFlight Inc., the subsidiary that manages Citigroup's corporate fleet, when asked to comment about the new 7X.
"What relevance does it have but to hurt my company?"
It's not uncommon for large companies to pay a deposit on a new plane then cancel the order before delivery, according to a source in the corporate aviation business.
Citigroup execs are also quietly trying to unload two of their older Dassault 900EXs.
Those jets, nearly 10 years old, are worth an estimated $27 million each. They were still listed for sale yesterday on the Web site of Citigroup's aviation broker, Aviation Professionals.
A company representative said she would not comment on "brokering both sides of the deal" when asked about the incoming Falcon 7X.
The Dassaults are part of CitiFlight's Gulf Sierra fleet, which includes the two Falcon 900EXs, tail numbers N399GS and N588GS, currently for sale. FAA records show Citigroup reserved a new tail number, N488GS, possibly for the incoming 7X on Nov. 10 last year.
A woman answering the phone at CitiFlight's private hangar in White Plains said she was "not authorized to release information" about the new jet.
Dassault's US sales office declined to comment.
Citigroup spokesman Stephen Cohen declined to comment.
High-Flying Citigroup Grounds Plans for $50M Jet
Obama Aide Called Citigroup to Complain About Jet
By JAKE TAPPER
Jan. 27, 2009
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SHARE The high-flying execs at Citigroup caved under pressure from President Obama and decided today to abandon plans for a luxurious new $50 million corporate jet from France.
The bank used TARP funds to purchase a new corporate jet for executives.The decision came 24 hours after the banking giant, which was rescued by a $45 billion taxpayer lifeline, defended buying the state-of-the-art Dassault Falcon 7X -- one of nine to be flying in U.S. skies -- as a smart business deal.
The jet, the epitome of corporate prestige and privilege, can carry 12 passengers in elegant comfort.
ABC News has learned that on Monday officials of the Obama administration called Citigroup about the company's new $50 million corporate jet and told execs to "fix it."
Good job Obama!
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Last edited by 07rdsterGT; 01-27-2009 at 08:33 AM.
Well, if they sell two for a total of $54 million is it wrong they save $4million and have one less plane? I dont know how many other planes the company has, but honestly if they can make some extra money and have one less plane why not. Maybe the new one gets better gas mileage........and less maintenance costs than the other two combined. So maybe without all the facts we shouldnt jump to conclusions.
Yeah, let us know when they sell them. In the real world, if your selling something to buy something else, a responsibly entity would wait until they sold said s h i t before they buy said newer s h i t.
What’s wrong with the two planes they have now? Don't they have bigger things to worry about besides a new cushy jet? Like staying in business?
With our money no less.
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Last edited by 07rdsterGT; 01-26-2009 at 09:51 AM.
Well, if they sell two for a total of $54 million is it wrong they save $4million and have one less plane? I dont know how many other planes the company has, but honestly if they can make some extra money and have one less plane why not. Maybe the new one gets better gas mileage........and less maintenance costs than the other two combined. So maybe without all the facts we shouldnt jump to conclusions.
Sell the old jets.
Cancel the new jet.
Fly Southwestern.
Or put a video camera on a laptop and telecommute.
It's not amazing at all. Top execs are rich, government employees are rich. What do we care which one of them it is stealing our tax $? They have been doing it forever, and will do it forever.
if they ordered it 2 years ago from a luxury company...... nvm im not even going to explain it. silly kids.
Quote:
It's not uncommon for large companies to pay a deposit on a new plane then cancel the order before delivery, according to a source in the corporate aviation business.
it sounds as if they had a contract to buy this plane so does anyone know the costs to them if they backed out of the deal, and how much lower the operating costs of the new jet would be compared to the older ones?
Fly Southwestern.
Or put a video camera on a laptop and telecommute.
Oust the current board, get a new one, that's efficient and responsible and one that wouldn't mind flying commercially which would help stimulate our airline industry...
Wanna save money? Fly southwest.
__________________ 03 Chrome Silver Touring Model AND NO I'M NOT THE CHICK IN MY AVATAR!-- That's my wifey Ally..
We don't know the specifics of this. Jets (especially custom luxury jets) don't depreciate like cars do. They might actually make money off this down the road. One of my clients bought a jet a couple years ago, and now has offers from potential buyers for 8 million more than they paid for it. This doesn't always happen though, but we don't know specifics.
Oh, well that's a perfect reason to buy a new jet. In fact, it's such a good reason I'm going to donate my yearly income, through government levied taxes, towards the purchase of a second one. Hell, they have 45 billion, lets buy 10 jets. They'll make someone money down the road.
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Last edited by 07rdsterGT; 01-26-2009 at 10:56 AM.
That probably has something to do with it....biggest fund raiser for Obama inauguration....oh wait nevermind, he is our savior who can do no wrong, i forgot...
It's funny how the Big 3 got looked down upon so heavily when they came in their corporate jets... yet the banks can do whatever they want. Oh, and the politicians are still flying their jets too.
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Our forefathers made one mistake. What they should have fought for was representation without taxation. Fletcher Knebel
High-Flying Citigroup Grounds Plans for $50M Jet
Obama Aide Called Citigroup to Complain About Jet
By JAKE TAPPER
Jan. 27, 2009
202 comments FONT SIZE
EMAIL
PRINT
RSS
DIGG
SHARE The high-flying execs at Citigroup caved under pressure from President Obama and decided today to abandon plans for a luxurious new $50 million corporate jet from France.
The bank used TARP funds to purchase a new corporate jet for executives.The decision came 24 hours after the banking giant, which was rescued by a $45 billion taxpayer lifeline, defended buying the state-of-the-art Dassault Falcon 7X -- one of nine to be flying in U.S. skies -- as a smart business deal.
The jet, the epitome of corporate prestige and privilege, can carry 12 passengers in elegant comfort.
ABC News has learned that on Monday officials of the Obama administration called Citigroup about the company's new $50 million corporate jet and told execs to "fix it."
'rescued' citi buying $50m jet
....and less maintenance costs than the other two combined. So maybe without all the facts we shouldnt jump to conclusions.
03 Chrome Silver Touring Model AND NO I'M NOT THE CHICK IN MY AVATAR!-- That's my wifey Ally.. 
