BofA CEO Flies In Private Jet, Refuses To Answer Questions On $3.6 Billion Bonuses

[hegemony]

http://abcnews.go.com/Blotter/story?id=6969628&page=1

[centex]

"The bank, which has received $45 billion in federal bailout money, defended the use of the luxury private plane for the hour-and-a-half flight, saying it was justified for efficiency and timing reasons. It cost at least $5,000 an hour just for gasoline and pilots. According to travel Web sites, a scheduled commercial flight on US Airways would have cost $440. "

 

I'll call BS on the $5K/hr figure. Private corporate pilots make bank, but not THAT much bank...and Jet-A ain't THAT costly. AND...in light of recent events, I am not sure I would have used US Scareways as the reference point...

 

An earlier comment in the article about the upscale SUV from the airport also served to illustrate that the writer has no clue about private aviation...if I fly in somewhere and need transportation, Signature, Atlantic and other similar FBO's will have mostly upscale vehicles- they don't trot out the broken down former police cruiser you see in some small-town FBO's. It is also not unheard of to loan the vehicle in exchange for fueling through the particular FBO.

[thesaintly]

Why not fly first class on a commercial flight? Detroit already took a lot of heat for their jet antics. You link Lewis would have listened?

[GEORGE]

Why not fly first class on a commercial flight? Detroit already took a lot of heat for their jet antics. You link Lewis would have listened?

"IF" they did...then people would have to find something else to COMPLAIN about

[hegemony]

Why not fly first class on a commercial flight? Detroit already took a lot of heat for their jet antics. You link Lewis would have listened?

"IF" they did...then people would have to find something else to COMPLAIN about

does that justify the use of a private jet?

[thesaintly]

Of course, it is in season to bash banks at the moment. Make no mistake, I have plenty of beefs with them personally. Nonetheless, when your company is under intense scrutiny, wouldn't it be time to dial back a bit?

[GEORGE]

THE "BANKING PEOPLE" ARE THE NEW STALKERAZZI VICTIMS

[NorCalR1]

Why not fly first class on a commercial flight? Detroit already took a lot of heat for their jet antics. You link Lewis would have listened?

"IF" they did...then people would have to find something else to COMPLAIN about

does that justify the use of a private jet?

 

Lets look at it for what it really is, an act of defiance. He flew a corp jet from NC to NYC. Not a really long trip to begin with. The white house, the AG, and the taxpayers can bark and complain all they want. So what?. Essentially, what can they really do about it? Nothing.

 

Its just a newsworthy item for people to complain about it, nothing more, nothing less.

[Venusfan]

As always it's not the people in the high offices suffer it's the ones who work the front lines. A lot of tellers will lose their jobs yet dogs like these get million dollar bonuses plus still get free travel and rent. That's why I bask in glory when these dogs kill themselves are losing all their money.

[GEORGE]

USE THE PRIVATE JET...it costs money

 

DON'T USE THE PRIVATE JET...it costs money

 

It is a contract...JUST LIKE THEIR PAYCHECK

[centex]

I'm curious whether people would have been equally as upset if the flight had still been a charter but was instead in a Mooney or perhaps some other make of a relatively quick twin? You know, the same sort of flight as many of us could arrange (or in some cases do ourselves)...

Edited February 27, 2009 by centex

[Revike]

Lets look at it for what it really is, an act of defiance. He flew a corp jet from NC to NYC. Not a really long trip to begin with. The white house, the AG, and the taxpayers can bark and complain all they want. So what?. Essentially, what can they really do about it? Nothing.

 

Its just a newsworthy item for people to complain about it, nothing more, nothing less.

Yep. With virtually no conditions on the bailout money, the banks can be brazen if they want to.

 

It is annoying that the media and some of our elected officials have made private jets the focus of attention. The other day-to-day nonsense (rate-jacking, CLDs, fees, etc.) costs consumers much more than the jets and bonuses, and should be under the microscope. Unfortunately, the anti-consumer practices are too "boring" to get proper news coverage ...

[Maxima]

It continues to be a "Sad and Pathetic" times in the banking industry. This has been standard SOP for this industry and the leaders forever. It's hard to give up my addition to sugar when I get a rush from it. These people "get off" on this type of behavior!

[NorCalR1]

That's why I bask in glory when these dogs kill themselves are losing all their money.

 

Does Ken Lewis look like a person who is the least bit worried about it? The taxpayers (via the govt) ensure that he keeps his paycheck and that his bank, BofA remains solvent.

 

Its the govt and the taxpayers that are worried, and rightfully so. They have the most to lose.

[GEORGE]

They may be over paid for what they do...

BUT I STILL DON'T GET THE PART OF THE PUBLICS RIGHT TO KNOW

[thesaintly]

This is a little off-topic, but to single out Lewis would be to miss the point. Our elected officials in Washington have long used private jets for functions that are not necessarily governmental in nature, not to mention other perks. There should be more outrage at gratuitous waste of tax payer dollars all around, be it corporate or at the state/federal level. That BOFA is being bailed out by our taxes makes this kind of complaint extremely cogent to the argument at hand.

[NorCalR1]

BUT I STILL DON'T GET THE PART OF THE PUBLICS RIGHT TO KNOW

 

Me either.

[GEORGE]

This is a little off-topic, but to single out Lewis would be to miss the point. Our elected officials in Washington have long used private jets for functions that are not necessarily governmental in nature, not to mention other perks. There should be more outrage at gratuitous waste of tax payer dollars all around, be it corporate or at the state/federal level. That BOFA is being bailed out by our taxes makes this kind of complaint extremely cogent to the argument at hand.

Not to go "P" but that is exempt...because that is the "GOVERNMENT"

[Mike SIU]

Not sure if it's so smart (personal safety) for these bank CEO's to be flying around commercial at the moment.

[IndyPoolPlayer]

This is a little off-topic, but to single out Lewis would be to miss the point. Our elected officials in Washington have long used private jets for functions that are not necessarily governmental in nature, not to mention other perks. There should be more outrage at gratuitous waste of tax payer dollars all around, be it corporate or at the state/federal level. That BOFA is being bailed out by our taxes makes this kind of complaint extremely cogent to the argument at hand.

 

Avoiding the P word, actually many times your "rank and file" Washingtonians (besides your majority/minority leaders, whips, floor leaders and Speaker of the House) typically fly commercial, and when they do fly on private jets its usually a lobbyist that charters the flight, and then reported on some lobbying report somewhere. OTOH the leaders in another category, and so is the Speaker since I believe that officeholder has security protection since s/he is third in line of ascendancy to POTUS.

 

Back to the corporate jets issue - the pilots don't make THAT much working for charter jet companies. There's a lot of overhead in the aircraft itself and the insurance on the plane. Landing fees is another story, as well as fuel charges. That being said I agree the $5000 figure is BS. Someone just trying to discredit general aviation once again assuming all of GA is corporate jets, cigar smoking executives with loose women and wild orgies at 28,000 feet.

[Quit Screwing Me]

Prison.

[GEORGE]

Prison.

What about prison???

[Soren]

$5,000 is NOT a BS figure for chartering an updated, large-ish private jet like a Falcon or Gulfstream.

 

Pilot pay and Jet-A is a tiny fraction of the cost of operating a turbine aircraft.

 

 

That said, many corporations have rules on private jet use, like NO private jet for flights under 2 hours. Or NO 1st class for flights under 1.5 hours. Clearly these bank guys don't have any rules like that to follow because their little CxO boys club MADE the rules. It is corporate executive waste and nothing more.

 

 

Anyway, here are some hourly rates from one of the first charters that popped up in google: http://www.fly-efi.com/private-jet-fleet.html

[kevinkev99]

I'll call BS on the $5K/hr figure. Private corporate pilots make bank, but not THAT much bank...and Jet-A ain't THAT costly. AND...in light of recent events, I am not sure I would have used US Scareways as the reference point...

 

 

NOT BS. Entry level on Netjets is $7,120 hour.

 

http://www.airtravelgenius.com/ar/aircraft...hip-netjets.htm

 

$5000 an hour for an owned jet is a reasonable estimate.

 

http://jetstreamcoop.com/private-jet-faq/h...-a-private-jet/

Edited February 28, 2009 by kevinkev99

[centex]

$5,000 is NOT a BS figure for chartering an updated, large-ish private jet like a Falcon or Gulfstream.

 

Pilot pay and Jet-A is a tiny fraction of the cost of operating a turbine aircraft.

 

 

That said, many corporations have rules on private jet use, like NO private jet for flights under 2 hours. Or NO 1st class for flights under 1.5 hours. Clearly these bank guys don't have any rules like that to follow because their little CxO boys club MADE the rules. It is corporate executive waste and nothing more.

 

 

Anyway, here are some hourly rates from one of the first charters that popped up in google: http://www.fly-efi.com/private-jet-fleet.html

 

The article discussed a $5K per hour (not $5K total), which IS BS when you realize that BofA is not having to charter someone else's plane.

 

Further, even if they WERE chartering, they won't be paying base rates...you can bet they would be buying large blocks of time just as you or I could do through our Bombardier reps.

Edited February 28, 2009 by centex