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Citigroup still intends to take possession of the jet this year despite its current woes. (nypost.com/seven/01262009/news/nationalnews/just_plane_despicable_152033.htm)

http://www.cleanmpg.com/photos/data/501/Dassault_Falcon_7X.jpg Jennifer Keil and Chuck Bennett – NY Post – Jan. 26, 2009

Dassault Falcon 7X is the ultimate FSP -- $50,000,000 and ready to transport the Leaders of Citigroup after their $45 Billion Bailout.

When is this Bailouts-for-Billionaires madness going to end :mad: -- Ed.

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?" ...

Citigroup spokesman Stephen Cohen declined to comment... http://www.nypost.com/seven/01262009/news/nationalnews/just_plane_despicable_152033.htm

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No-jet rule to be stripped from bill

A requirement for companies that receive bailout funds to give up their business jets gets taken out of the Troubled Assets Relief Program legislation. (kansas.com/business/aviation/story/663722.html)

http://www.cleanmpg.com/photos/data/501/Dassault_Falcon_7X_2.jpgMolly McMillin - Wichita Eagle - Jan. 15, 2009

Even American companies did not receive a nickel of this taxpayer rip off. -- Ed.

The aviation industry is breathing a collective sigh of relief.

A provision requiring companies receiving federal bailout money to divest of their private aircraft or leases is being stripped from a House relief bill, U.S. Rep. Todd Tiahrt's office said Wednesday.

Congressman Barney Frank, D-Mass., chairman of the House Financial Services Committee, on Friday introduced the language to the Troubled Assets Relief Program Reform and Accountability Act of 2009.

He has agreed to accept Tiahrt's amendment to strip out the language, Tiahrt said. Frank is rolling the amendment into his own manager's amendment to the bill, Tiahrt said...

"We're very pleased with that decision, and certainly hope that it will prevail throughout the life of this bill," said Bombardier Aerospace spokesman Leo Knaapen.

The language, if included, "would place in jeopardy well-paying jobs in Wichita and across our industry and significantly also tarnish our image of business aviation," Knaapen said...

Frank's actions were spurred after the chief executives from the nation's three largest automakers were criticized after they flew business jets to Washington, D.C., to ask for a government bailout... http://www.kansas.com/business/aviation/story/663722.html

See Wayne, this is just part of what I was talking about. Company officials ripping off the shareholders and in this case the taxpayers! Would you ever want to own any Citibank, knowing that the purchase and operating cost of this beast is in their cost line?

AND, Frank allowing the bill to be watered down is just more proof of the cozy relationship between corporations and government. Truly disgusting! No confidence here.

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.

SO CITIGROUP PAID NOTHING....THE TAXPAYERS PAID $50 MILLION. THAT SOUNDS OK.

Should we expect companies (or people) to behave otherwise when money is shoveled at them with no strings attached?

The fault is really own government's -- which in this country, ultimately means our own -- for thinking that the bailout was a good idea in the first place.

http://www.msnbc.msn.com/id/28872167/

I'm not sure I fully agree with the criticism. Selling off 2 older jets which should fully cover the costs of the new jet. The new jet gets better mileage and has lower maintenance costs. They should be able to reduce flight crew & maintenance crew hours, possibly even eliminating some fairly high pay positions.

Now if the alternate option is to continue to maintain both older planes, then preventing them from taking possession of the new plane amounts to micro-management from the government which reduces the ability of the company to save money. Not surprising most American's wouldn't appreciate saving money since most of them are personally in debt and can't do their own taxes without considerable help.

Just to play fair, if you can force them to get rid of all planes and save all that money, I would be for it, but I doubt we will go that far.

Citigroup will not take possession of new aircraft

Sen. Carl Levin, D-Mich., released a statement Monday after the New York Post report, saying financial firms receiving federal money should not be purchasing new planes. (businessweek.com/ap/financialnews/D95VKS5O0.htm)

http://www.cleanmpg.com/photos/data/501/Dassault_Falcon_7X_3.jpgStephen Bernard – Business Week – Jan. 26, 2009

Dassault Falcon 7X to be left in its hanger.

I just love how the politicians say “should not” when they make the rules on Bailout funds to begin with :rolleyes: -- Ed.

Citigroup Inc., which has received $45 billion in federal bailout money, said it will not take delivery of a corporate jet it previously planned to purchase.

The canceled deal comes a day after a New York Post report said the bank planned to take possession of the plane, and amid a chorus of concerns from politicians who are worried about how banks that have received federal funds are spending the money.

"Citi has no intent to take delivery of any new aircraft," the New York-based bank said in a statement Tuesday...

Aside from not taking control of a new jet, Citi is also planning to cut the number of corporate jets in its existing fleet to two from five, said the person, who asked not to be identified because those details haven't been made public.

Corporate jets have become a hot-button topic amid the ongoing credit crisis as the cost of owning and operating them has come into question, especially for companies receiving financial support from the government… http://www.businessweek.com/ap/financialnews/D95VKS5O0.htm

Got it. So: bailout of banks, not so much for aircraft manufacturers.

If the Feds want to nationalize Citibank, they should just do it and cut out this soft socialism of regulation by Congressional rhetoric.

All the negative press (much of it deserved) surrounding private aviation really hits Wichita hard, what with Lear, Cessna, and Beech all here in the air capital. Many of these planes are efficiently used. Fractional shares, etc. Company personnel traveling to non-hub destinations to manage chains of stores, etc.

I'd guess that the typical business jet is used more efficiently than the typical FSP. Maybe we should outlaw FSPs from the bailout companies, too. GM, you cannot use Suburbans...

Anyway, layoffs are happening here. Those people won't be buying cars. Another case of swatting a fly with a sledgehammer, I'm afraid. It is too bad the private sector exec's messed up so much they lost the right to make sound business decisions.

Not anymore...The Obama White House gave them a phone call...At least that is what they said on the news tonite.

My ex-employer IBP had 2 Falcon 20s, a Falcon 10, and a prop plane Merlin I believe. They flew mon, wed, fri out of Sioux City IA to Amarillo, Garden City and Emporia KS, Boise, Pasco WA, Waterloo and Quad Cities IA.

What seems like a extravagance is probably an economical price of doing business compared to public air travel to these places.

The bailout is a joke of course, my wife's credit union has not been hurt by this mortgage crisis and will probably receive some money even though it hasn't asked for any.:confused:

One of the first times I tracked a story on the internet was in late 1999 when golfer Payne Stewarts' plane depressurized and flew unmanned until it crashed. :(

Ontopic, lots of celebs charter private jets instead of owning them....why don't the CEO's move in that direction? It sounds like a very sensible solution for many corporations such as CitiGroup.