Amid criticism from Washington politicians, Ford Motor Company is apparently considering divesting itself of its corporate jet fleet. Last week, when the chief executives of the Detroit Big Three visited Washington, D.C., to request federal loans, they were ridiculed by members of Congress who questioned the logic of loaning money to companies that were spending it on “frivolous” items like jets.
Ford said on Friday that it is considering all options for its fleet of five jets. The automaker has significantly reduced use of the jets to the point where only the most senior executives have access to the expensive transportation.
The automaker is also almost exclusively purchasing less expensive, nonrefundable (deep discount) airfare for work-related employee travel. Previously, Ford bought refundable tickets to allow changes to be made prior to travel.
General Motors is also in a similar situation. The automaker said early last week, before the visit to Washington, that it is returning two of its five corporate jets to a leasing company because of reduced travel needs.
11/24, 2:30 PM
posted by:
A4
it was only a matter of time before one of them started with this, we all knew they would after all the criticism they took for it
11/24, 2:40 PM
posted by:
Lariat Luxury Locomotive Liner No.3
Next, the private jet industry will be in DC asking for a bailout.
11/24, 2:46 PM
posted by:
Mike the loser
Folks did you know that Mullaly lives in Seattle, he works in Detroit but goes home once a week, and his wife and children have unlimited access to the plane. I believe another Ford Exec does the same thing.
These trips cost about 30K each, so lets see, 2 execs, travel once a week=52*30K plus spouses 20 flights*30K plus a few business trips 30 trips *30K=$3,060,000 and i am being very conservative here.
11/24, 3:22 PM
posted by:
gitcypher
@ Lariait
HIGHlarious
11/24, 3:24 PM
posted by:
Borat
LLL3, why? To maximize ROI from those jets they will be sold to the highest bidder: Cali Cartel from Colombia.
11/24, 3:27 PM
posted by:
bigjimid
So Mike, what you’re trying to say is that work comes before family in your opinion?
11/24, 3:29 PM
posted by:
HoosierHero
lol LLLL3…
11/24, 3:32 PM
posted by:
mayer_ray_nagin
If they negotiate correctly with the airlines, they can usually get eitehr refunds on the non-refundable tickets or credits toward future purchase.
11/24, 4:18 PM
posted by:
RaineMan
If the auto manufacturers give up their jets… the rich arse wallstreet bankers at Citi Group and AIG should have to as well.
Another freaking $20billion for those pricks today… and still not a penny for the blue-collar auto workers. I will be so happy when the current administration is done… their priorities are all backwards.
11/24, 4:20 PM
posted by:
bolex
i think Mike is saying thats alot a fu-kin money!
11/24, 4:25 PM
posted by:
freeyellow2000
bigjimid,
I think what he means is that his family should move to Detroit instead of flying x county or better yet. let the exec pay for it out of his salary …. yeah I dreaming…………
11/24, 4:44 PM
posted by:
TomF
Mulally’s wife and children have unlimited access to the Ford plane? Ridiculous.
There’s a dinnertime flight from Detroit to Seattle every night of the week. It has a first class cabin. Ford could BUY OUT THE WHOLE CABIN for Mulally, so he doesn’t have to risk sitting with any aggrieved Ford customers, and still save money.
These execs live in a friggin’ dream world.
11/24, 7:05 PM
posted by:
beatusmongous
TomF, I disagree…
It’s only a dream world for us. For the execs, it’s reality.
11/24, 7:21 PM
posted by:
The Stig
Mark “Big Hair” Fields is gonna be pissed.
11/24, 7:38 PM
posted by:
1c3d0g
Good. I applaud this move. Finally someone has the balls to tell them to get their act together, or else…
11/24, 9:12 PM
posted by:
elviososa
good move…every little helps.
11/24, 10:26 PM
posted by:
hateful83
I love how Congress ridicules the automakers for what it considers to be frivolous. They’re acting as if the auto industry executives are the only ones to who enjoy frivolous perks. Isn’t that pretty much part of the game? Getting to the top and being as wasteful and irrational as possible? Congress needs to stop taking the tuff guy approach and lend some f****** money. Upon doing so they should also oversee what the “big 3″ plan on doing in the immediate future. For example, GM definitely needs to eliminate some of its brands. Hate to say it, but in order to survive that will have to happen.
11/25, 1:09 AM
posted by:
sharpie
“I believe another Ford Exec does the same thing” – well that’s Mark Fields. His family lives in Florida.
And bigjimid, no, job does not come before family, but if you like your job so much, you can move your family to Michigan with you. If you want to visit your family in Seattle once a week, by all mean, do it but do it on your own dime. I am sure Mullany and Fields’s bonuses will easily cover that weekly ticket.
11/25, 8:20 AM
posted by:
TailsToo
If Mullaly wants to take a job in Detroit, MOVE TO DETROIT! It’s a joke that GM would let him do this. What a waste of money.
11/25, 10:17 AM
posted by:
oldraven
Mullaly doesn’t work for GM.
This is still making me wonder when the Banks will ever have to use their reserves or make sacrifices for the money. “No blank cheque..” for the auto industry, but the Banks get one without pause. Where the banks have the money to pull themselves out of this, the D3 have already spent all of theirs to do the same thing.
What a joke.
11/25, 10:27 PM
posted by:
HalGameGuru
yes because the fates of thousands of american workers in detroit should rest on the shoulders of AIRPORT SECURITY? Sure some people don’t need access, and some flights may be frivolous but to deny a major corporation private jets for their highest ranking officers simply because its not “everyman” is stupid. how much TAXPAYER money is wasted by those same congressmen with their free flights to and from DC between their 2 day work weeks?
Makes me sick.