January 28th, 2009
The New York Post’s Jennifer Keil and Chuck Bennett reported in Monday’s paper that Citigroup is about to upgrade to a new $50 million, twelve-seat corporate jet.
The New York Post, citing “a source familiar with the deal,” reported today that Citigroup executives authorized the purchase of a new Dassault Falcon 7X, which seats 12 in leather seats and sofas and includes a custom entertainment center.
Citigroup received $45 billion from the government last year, including a $20 billion emergency infusion in November.
A spokesman for the bank said Tuesday that it had no intention of taking delivery of any new aircraft. Citigroup said earlier that stopping the deal would cost it millions of dollars in penalties.
Posted in Aircraft
America’s corporate jet industry is facing lean times as its aircraft are lambasted as symbols of Wall Street excess. Confronted with economic weakness and public scrutiny, companies have put thousands of corporate jets up for sale.
“The struggling bank Citigroup this week cancelled a $50m executive jet after being attacked for the purchase by the White House and by the US treasury.” (AP)
In Congress, the House financial services committee recently threatened to go further by forcing all banks receiving government assistance to offload their entire fleets of corporate jets – a measure which would affect more than 250 institutions.
IAS along with Airbatch Consulting LLC. are boutique aviation consulting firms for the demanding client who desires personalized service.IAS and Airbatch Consulting LLC. believe that there is a solution to the problem being faced by corporations today.Being in business as well and understanding that a Corporate Jet can be a valuable and essential tool that justifies the initial cost ten times over. For the government and the general public that believes everything the media feeds them, the issue is the cost…..
The solution is this, the recent airline recession has placed a large number of airliners on the market. These Boeing, Airbus, Bombardier CRJ, and Embraer ERJ airframes can be cost effectively converted to corporate service at the fraction of the price of buying a new corporate aircraft. This allows for a very acceptable cost cutting alternative without skimping on quality and functionability.There are other aspects of this solution that are very attractive, for example:
IAS and Airbatch Consulting LLC. can help to divest of the current asset or future delivery position.
The conversion of the aircraft will take place in the US, helping a US company, putting US workers to work(become a contributor to the solution instead of a focus point of the problem).
Finally, arrangements can be made to assist with obtaining or placing the aircraft on an existing 135 certificate to operate under thus creating a consistant revenue flow when not being used for company business.
IAS with Airbatch Consulting LLC. has access to all new and pre-owned aircraft on the market and can arrange new aircraft delivery positions without waiting years. By not being aircraft brokers or a manufacturer’s salesperson IAS and Airbatch Consulting LLC. are not limited to an individual brand or individual listings. Aviation consultants that pass along all the favorable terms and get them directly to the client.
Capt. Ivan Klugman
President of Integral Aviation Solutions
Michael Batchelor
AirBatch Consulting