Some carp on automakers’ jets
Chief executives’ use of private planes seen as hypocritical for companies wanting public help
By THE ASSOCIATED PRESS
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Published: November 21, 2008
Some in Congress pounced this week on what they view as the hypocrisy of auto executives flying on corporate jets to Washington to ask for public help.
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Executive travel
As it turns out, that’s how executives at many big companies get around. About 11,000 U.S. companies operate jets or powerful prop planes, and more use smaller planes, said Ed Bolen, president and chief executive of the National Business Aviation Association. He said companies like their executives to be productive and to have access to phones and e-mail during flights. And if, say, the chief executive and chief financial officer are flying together to meet with investors, they can talk about the company’s books without being overheard, he said. There are some notable exceptions. Intel Corp., known for an egalitarian work culture where everyone has cubicles, has long told both executives and rank-and-file to fly coach. Intel also charters private planes for executives traveling abroad, if there’s a perceived security threat or to save time. Many large companies require their executives to use company planes for all corporate, and even personal, travel. General Motors Corp. spokesman Tom Wilkinson said its top three executives are required to use a company plane. He said several people were on its flight to Washington this week.Taking notice
Corporate budget-cutters have taken notice of those shiny jets. Building products maker Lousiana-Pacific Corp. said Tuesday it eliminated its two planes and support staff. Wilkinson said GM, which leases its planes, eliminated two of seven planes in December and will cut two more soon. He said the company also has cut about half of its corporate aviation staff. He said that while it might have looked bad to fly private jets to Washington to ask for loans to save the business, flying commercial had risks, too. "It’s not something where you’d want to stand in line on a commercial flight and risk having your flight canceled,” he said.
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