Citigroup Splurges $50M on New Corporate Jet, "Dassault Falcon 7X, As It is Mired in Financial Woes After $45B Government Bailout

Photo: Citijet -- Dassault Falcon 7X, Dassault's Website/Huffington Post

UPDATE

Citigroup has grounded plans to purchase new luxury jet. The execs at Citigroup caved under pressure from President Obama and decided today to abandon plans for a luxurious new $50 million corporate jet from France. It is a low-down dirty shame that President Obama had to get involved. According to ABC News, Monday officials of the Obama administration called Citigroup about the company's new $50 million corporate jet and told execs to "fix it." Earlier on Monday, White House spokesman Robert Gibbs said made it clear that the president disapproved of the deal. "The president said this during the transition, as it related to the auto companies using private jets; doesn't believe that's the best use of money at this point," Gibbs said.

While Citigroup is in a financial tailspin and was bailed out by the government to the tune of $45 billion, it is about to upgrade to a new $50 million, twelve-seat corporate jet -- the Dassault Falcon 7X. This is unconscionable and a real disgrace that after grovelling on their hands and knees this is the most pressing need the company could seek to address. Was this Citijet really necessary, especially in this economic nightmare? This is a clear indication of how much the company really cares about Main Street.

The plane is a luxurious jet with a range of 5,950 nautical miles (meaning it can fly from New York to all of Europe and South America, as far east as Riyadh, and as far west as Honolulu or Petropavlovsk, Russia). The Post reports it has "plush interior with leather seats, sofas and a customizable entertainment center."

The Dassault website describes the wide, generously appointed cabin, but says that "the airplane's most welcome feature may be Dassault's breakthrough environmental system." It touts "quieting acoustics" and advanced temperature monitoring that contribute to a more comfortable passenger experience. Source: Huffington Post

This is a shame and should not be tolerated. Oops, I forgot. The government handed the banks billions of dollars without setting guidelines, so they are free to spend it as they please on everything except helping Main Street. The Post also reports that Citi executives are "quietly trying to unload two of their older Dassault 930EXs," worth approximately $27 million each. So, while people are losing their jobs in massive numbers and facing foreclosure, the best Citigroup could do is think about its executives and their perks. Why can't these people fly business class? This literally flies in the face of decency and accountability to Main Street for the massive amounts of money handed to these financial institutions by the Treasury Department, Congress and President Bush. Sorry President Obama, we cannot just give you a blank check for the rest of the TARP funds. There must be accountability this time around.