No Corporate Jet For Vikram

Senator Carl Levin was prompt in his condemnation of the CEO's insane spending habits: "The notion of Citigroup spending $50 million on a new corporate jet, even as it is depending on billions of taxpayer dollars to survive, does not fly. To permit Citigroup to purchase a plush plane - foreign-built no less - (ed. brilliant, although Boeing isn't really known for their 12 seaters these days) while domestic auto companies are being required to sell off their jets is a ridiculous double standard."

Levin has said he will petition the U.S. Treasury Department to halt Citi's plan to buy the jet. “I have urged Tim Geithner, who will presumably be Treasury Secretary by the end of the day, to do what he can to stop this absurdity from occurring, and I am assured he will look into the matter promptly.”

We really would be short all private, "plush" jet makers here.... foreign and domestic...

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Vikram To Fly in Style As Citi Teeters On The Edge

NY Post has broken the news that the bank which is currently suckling on $45 billion of taxpayer money has just completed the purchase of a Dassault Falcon 7x jet for $50 million. We can just smell the Barney Frank hearing on this one. The ultraluxury airplane seats up to 12 very concerned executives, has a plush interior with leather seats, sofas and a customizable entertainment center, and can easily do the NY - London crossing without refueling. When asked about the purchase, Bill McNamee, head of CitiFlight, the subsidiary that manages Citi's corporate fleet said "Why should I help you when what you write will be used to the detriment of our company? What relevance does it have but to hurt my company?"

Just out of curiosity, if Vikram et al really needs a private plane, why not just buy some of the jets that liquidating Lehman is trying to offload, and at much lower prices. As we noted here, Citi could have bought 3 Boeing 737s for less than the cost of one new Falcon. There is no need to even comment on the total lack of common sense of this decision by a management team that despite all signs to the contrary, still believes it is flying high in the golden days of 2005. Sphere: Related Content

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