The Silver Lining on GM's Private Plane PR Problem: At Least GM Leased.

Posted by: Peter Burrows on November 21, 2008

If you’re going somewhere with tin cup in hand, it’s probably best to leave the corporate jet at home. That’s what GM CEO Rick Wagoner and other Detroit car execs found out the hard way, when they were lambasted during Congressional hearings on the auto industry bail-out on Nov. 20.

In retrospect, they probably should have flown to one of the smaller airports in the DC area; maybe they could have avoided the press. Or maybe, gasp, they should have flown plain old first class.

Now, GM is saying it has been planning to get rid of two of its leased jets. I don’t know if the company is breaking a lease or incurring early termination fees. But I’d bet the company will fare better on the transaction than whoever owns the jets. Companies including Bristol Meyers, Lucent-Alcatel and Lehman Brothers (no surprise there) and many others are currently selling off planes to save money. That’s creating a glut of inventory in the once-overheated used jet market.

Reader Comments

Chuck

November 21, 2008 3:03 PM

I don't know how this fits into the "techbeat" column. In fact, I have been seeing more and more articles that don't belong.

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Bloomberg Businessweek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, and Douglas MacMillan, dig behind the headlines to analyze what’s really happening throughout the world of technology. Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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