Monday, January 26, 2009

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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Anonymous said...

Wow, this is sick. Although I am sometimes skeptical of NY Post stories, I don't see why one of the parties contacted wouldn't have immediately denied the story if it was false.

It looks like nationalization of C, and probably some other names, is all but inevitable.

Anonymous said...

The CEO can go fly on a carpet.