Bank of America cuts its jet fleet

[Turborama]

Source: Guardian (UK)

On the same day that President Barack Obama announced a crackdown on Wall Street extravagance, Bank of America announced it is selling some of its corporate aircraft as it seeks to cut costs.

Three of its own corporate jets and Merrill Lynch's helicopter will be put up for sale, even though the market in such aircraft is glutted as big corporations seek to shed the trappings of excess.

=snip=

Since October, Bank of America has received $45bn in government assistance, including a $20bn injection last month to help with its troubled Merrill Lynch acquisition.

"As part of an ongoing cost reduction effort we have been scaling back on our use of corporate aircraft including selling three aircraft we own and the Merrill Lynch helicopter," Bank of America spokesman Scott Silvestri said. He declined to say how many planes the bank still owns.

Federal aviation administration records from last years show Bank of America is the owner of nine planes, including four Gulfstreams. The company acquired brokerage Merrill Lynch in January.

Read more: http://www.guardian.co.uk/business/2009/feb/04/useconomy-useconomicgrowth

[liberal N proud]

1. All these things should have happened BEFORE they asked for a bailout

These companies sat on all sorts of perks and extravagance as they were sticking their hands out. They acted as it they were down to their last fucking dime back in October. All while they were wining and dinning themselves in the lap of luxury.

The company I work for has done several things in light of the economy. Our sales are down double digits. The first thing the company did was ditch the corporate jet. Then they froze all non essential projects and no new projects have been allowed.

Next the executives all rescinded their pay raises from last year. They taken actions that trim millions of dollars of spending stopping or delaying the spending during this economic tsunami. The company to date has avoided any layoffs. Other companies in the same market have announced layoffs and some filed for bankruptcy.

Why do all these banks who have double dipped on the bailout still have all these frivolous things?

[DUlover2909]

2. They're drunk from the Bush years.

They didn't drink the "Obama Koolaid" I guess and they figured it would be business as usual. Now they're freaking out. I can't begin to imagine what goes on in the heads of these Hyper-Rich oligarchs. They're living in fantasy land and they just can't get their minds around the concept that some day, the callamity might strike home for them too. They have sons, daughters, wives, and mistresses that expect a certain level of luxury. The day that they come home and have to explain to all of them that "The party is over, that the 5 summer homes and the cabin in Aspen are going to have to be sold, and that the yearly vactions to Europe and the Caribean, and the lavish Christmas bonuses that paid for all the caviar and champagne, the yachts and jets, the weekend getaways to Rio De Janeiro, are all going to disappear. We'll still be able to pay for Yale or Oxford, but we have to tighten our belts. We'll still have a comfortable life, don't worry."

That won't sit well with their families. They're spoiled snobs. They'll be angry even though their lifestyles of the rich and famous will still go on, even if it's not quite as rich, but still rich, thanks to the corporate welfare.

[Turborama]

4. Wow, sounds like you work for a very sensible firm.

I wonder how much the general populous are taking notice of all this blatant corporate greeb that's being laid out for us all to view? Could this be a paradigm shift in the making and eventually companies like yours will be the norm? I believe every negative has a positive and hope this will be the end result...

[liberal N proud]

5. I feel lucky to work here, (25 years next week)

More than 100 years of experience and history here.

[MicaelS]

6. Because it's all about "talent" in their mindset.

There's two types of people in their world, "talent" aka executives, and everybody else. Talent is always much more important than everyone else. In order to attract and keep talent, then you just have to have such perks. They have spouted that crap for so many decades they have come to believe that Moses came down the mount with it in his back pocket.

[Regret My New Name]

3. So now's a good time to buy that learjet I've always wanted, aye?

Anyone care to loan me some cash? :P

[crankmob]

7. did they buy a space shuttle with the bailout money?

yes, i signed up just to say that :-P