General Motors is dropping two of its five corporate jets but has no plans to fly its senior executives commercially despite sharp criticism of living it up while begging for a massive bailout.
The decision to take the planes out of service had nothing to do with criticism from lawmakers, who accused the executives of living large as they sought a 25-billion-dollar bailout, GM spokesman Tom Wilkinson said yesterday.
“It is response to budget cutbacks in general due to the sales slump and credit crisis,” Wilkinson said, adding that two other planes were cut in September.
GM’s board, like many other large corporations, requires that “key corporate officers travel by corporate aircraft for safety and security reasons,” he added.
GM’s chief executive Rick Wagoner was grilled along with the heads of Chrysler and Ford on Wednesday for their use of corporate jets to fly to Washington to beg for billions in loan guarantees.
“Couldn’t you all have downgraded to first class or jet-pooled or something to get here?” Democratic representative Gary Ackerman of New York said at a hearing of the House Financial Services Committee.
“It’s almost like seeing a guy show up at the soup kitchen in high hat and tuxedo.”
Democrats in Congress Thursday put off a vote on a bailout for crisis-hit “Big Three” automakers until at least December, and ordered industry chiefs to come up with a new restructuring plan.
The automakers have said they welcomed the opportunity to provide lawmakers with their restructuring plans and show they would be able to emerge from the current economic slump as viable companies.