No More Jets for GM Execs

After last year GM execs went to Washington to ask for money to survive the troubled times ahead by taking private jets, the recently declared bankruptcy may put an end to the comfort of this type of travel. From now on, GM's execs won't travel by air because, as Autonews reported, they asked not to.

The US bankruptcy court has approved GM's request to cancel the lease on seven Gulfstream corporate jets, as well as for the hangar at Detroit Metropolitan Airport where they are housed.

The move is part of GM's cost cutting measures taken to come out of bankruptcy. The American manufacturer asked the court's permission to get rid of its jet fleet comprised of two top-of-the-line Gulfstream V jets, leased from Suntrust Leasing since 2001 and five Gulfstream IV, leased in 2007 from AVN.

In numbers, getting rid of the hangar will save the company $448,000 every year, but it is unclear how much money will be saved from the jets. In addition, the court has allowed GM to surrender a $13.4 million security deposit to AVN in exchange for the cancellation of the lease for the five planes.

Last December, in an attempt to both save money and ease the public pressure which followed the incident when GM execs flew jets to D.C. and complain about their financial problems, the manufacturer cancelled corporate flights.

Back then, GM said that “due to significant cutbacks over the past months, GM travel volume no longer justifies a dedicated corporate aircraft operation,” and, as a result, the operations at General Motors Air Transportation Services ceased.