It is highly unusual to know about a crash before it occurs, but in this case it is easy to see. What I am talking about is the impending demise of business aviation for corporations. With the election of the Democrats to a majority in Congress followed by the election of President Obama, the United States has entered a new era - and if this doesn't frighten you, it should!
It started with the criticism of the auto companies for the use of their private jets to come to Washington to feed at the money trough controlled by Congress. Like little weeping kids these great big CEOs with incredible power cowered under the criticism and closed down entire flight departments.
This week Citigroup has come under fire for purchasing a new aircraft it purchased several years ago and is just about to be delivered. Apparently a Treasury official called Citigroup and told them that purchasing this aircraft, a Falcon 7X, would be a bad idea. A Citigroup spokesman told Treasury that it was replacing two older Falcons which, when sold, would generate more money than the purchase price of the new aircraft which is more fuel efficient to operate.
Nonetheless Citigroup has caved to the pressure of the likes of our very own Michigan Senator Carl Levin and has decided to forego this aircraft.
How Congress, which has bankrupted Social Security and screwed up every program it has ever created, has the audacity to tell private industry what and how it should operate its business is beyond me! In an earlier post I detailed how the US Government owns some 1,400 aircraft and does not even know where some of them are!
What has happened to the leaders of industry we all looked up to? They certainly are not all like Madoff and some of the CEOs who have raped and plundered their companies. There are a lot of great companies still out there.
Take Microsoft for example. Look at what Bill Gates has done with all of his money - he has put almost all of it in a trust fund to be used for charitable work, along with the money Warren Buffet has.
Where are the backbones of these industry titans who listened to Bill Lear when he introduced the Learjet and set business aviation on course to help businesses become more efficient and helping them to grow exponentially. Why can't they just stand up, tell the truth, make the argument and stand their ground? Business aircraft are STILL a great business tool, and the reasons they were purchased originally has not changed!
If someone doesn't start standing up for business aviation we WILL have another Aviation Crash! Followed shortly by the crash of the Free Market I am sure. God help us all!
Until next time keep your wings straight and level Hersch!
Federal Government Tax Rebate
The Federal government is sending each of us a $600 rebate.
If we spend that money at Wal-Mart, the money goes to China.
If we spend it on gasoline it goes to the Arabs.
If we buy a computer it will go to India.
If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala.
If we purchase a good car it will go to Germany.
If we purchase useless crap it will go to Taiwan and none of it will help the American economy.
The only way to keep that money here at home is to spend it on beer, since this is the only product still produced in the US.
I've been doing my part.