Kurt Brouwer August 7th, 2009
Source: Wall Street Journal / U.S. Air Force
I bumped and updated this post because the story just got bigger and better. Or, worse if you are a taxpayer. Turns out the tab for the new Congressional “Cash for Clunkers” VIP government jets is $550 million, not the $200 million reported a few days ago.
The Wall Street Journal reports [emphasis added]:
Congress plans to spend $550 million to buy eight jets, a substantial upgrade to the fleet used by federal officials at a time when lawmakers have criticized the use of corporate jets by companies receiving taxpayer funds.
The hypocrisy seemingly knows no bounds. At a time when most Americans are cutting back, Congress is splurging over half a trillion billion dollars on new, luxury jets. It’s doubtful they really need them at all. The WSJ report continues:
Geoff Morrell, the Pentagon press secretary, said the Department of Defense didn’t request the additional planes and doesn’t need them. “We ask for what we need and only what we need,” he told reporters Wednesday. “We’ve always frowned upon earmarks and additives that are above and beyond what we ask for.”
Congress turned harshly critical of companies that fly executives on private jets in the weeks following the government bailout of banks and auto makers last year. General Motors, Chrysler LLC and Citigroup Inc. were among those caught in the cross hairs of angry lawmakers.
And, given the outrage heaped on corporate leaders last year, it is doubly shocking that Congress seemingly sees no conflict with this purchase:
Cash for Clunkers: Congressional Style
This really should be viewed as Congress simply taking its turn at the Cash for Clunkers extravaganza. Sure, we’re talking corporate jets not compact hybrids, but the principle is the same, right? Trade in older, used vehicle for nice, shiny new one.
I, for one, am very happy that our Congressional overlords will be able to keep flying in style in nice new jets. Not those old, worn-out private jets they had before. And, naturally, income taxes will have to go up because somebody has to pay for these big toys.
Here is an interior shot from Gulfstream. Looks comfy, doesn’t it?
Source: Raw Story
House Orders Up Three Elite Jets (RollCall.com, August 5, 2009, Paul Singer)
Last year, lawmakers excoriated the CEOs of the Big Three automakers for traveling to Washington, D.C., by private jet to attend a hearing about a possible bailout of their companies.
But apparently Congress is not philosophically averse to private air travel: At the end of July, the House approved nearly $200 million for the Air Force to buy three elite Gulfstream jets for ferrying top government officials and Members of Congress.
The Air Force had asked for one Gulfstream 550 jet (price tag: about $65 million) as part of an ongoing upgrade of its passenger air service.
But the House Appropriations Committee, at its own initiative, added to the 2010 Defense appropriations bill another $132 million for two more airplanes and specified that they be assigned to the D.C.-area units that carry Members of Congress, military brass and top government officials…
Flying commercial is for the little people, don’t you agree.
Update: A commenter at The Corner made an interesting point, which is that there are many, many good used jets languishing on the market these days at 40-60% less than a new jet. Even if Congress and the other bureaucrats really needed the jets, they could have purchased late model used jets for much less.
It’s also somewhat telling that they are ordering 3 brand news G550’s at a time when the private jet market is literally swimming in deeply discounted, pre-owned corporate jets.
It is estimated that 20% of the global private jet fleet is currently for sale and prices for pre-owned aircraft have tumbled 40-60% based on the model specifics.
Maybe instead of appropriating money they don’t have to buy brand new jets, Congress should offer to buy the corporate jets that GM and Citibank put on the market?
I personally think it’s a mistake for our representatives to fly in non-commercial government-owned jets. They already are living and working in the bubble known as Washington DC. It would be good for them to rub shoulders with citizens on flights to and from.
One additional point is that the purchase price of $550 million is one thing. Ongoing, annual operating costs are on top of the purchase price. I wonder what the annual tab will be?
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They dare not fly commercial as the headlines would be filled with tales of mid-air homicides.
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