Royal Bank of Scotland

Royal Bank of Scotland cancelled a $45 million order for a luxury private jet that would have been used by its ousted chief executive and other executives if the bank had not needed a taxpayer bailout.

R.B.S. is majority-owned by the British government and is mired in a high profile row over a £16.6 million ($23.7 million), pension pot for the chief, Sir Fred Goodwin.

R.B.S. placed the order for the ultra-modern long-range Falcon 7X worth $45 million about five years ago, and the plane was due to be delivered this year.

R.B.S. said it had cancelled the order in October. That was the month Britain’s government pumped £20 billion into the bank and took a majority stake, and Mr. Goodwin was replaced as CEO.

Deposits of 10 percent before delivery are most times kept on cancelled orders, but R.B.S. said it had not lost its deposit nor any money on the deal and had sold on the order for the jet.

The list of Dassault’s cancelled orders also includes Citigroup which has also been battered by heavy losses.

Source: IHT / Reuters

The Falcon 7X entered service in 2007 and is the world’s first business jet built with “fly-by-wire” or digital technology resembling the cockpit of a modern jetliner.

Assembled in Little Rock, Arkansas, its interior includes hand-stitched leather seats and custom-made furnishings.

Its 39-foot-long (11.9 metre) and 92-inch-wide (2.34 metre) cabin is large enough to accommodate 19 passengers, but it usually comes with fewer seats and more spacious fittings.

Falcon 7X