Business aviation took another public relations hit when Citigroup, caving in to public outcry and a reprimand from President Obama, announced Tuesday it would not take delivery of a Dassault Falcon 7X ordered more than two years ago. President Obama was quoted saying he didn’t believe buying the new business jet was “the best use of money” by the bank, which is the recipient of some $45 billion in government bailout funding. The New York Post headline proclaimed the purchase ‘Plane Despicable,’ despite an editorial in which the paper acknowledged that selling two Falcon 900EXs for $27 million each would yield a net savings of $4 million-to say nothing of the fuel savings with the more efficient 7X, warranty protection that would save the bank money on maintenance and the possibility of losing millions in deposit money already paid.
Citigroup Pulls Out of Falcon 7X Buy
Key Takeaways:
- Citigroup canceled its order for a Dassault Falcon 7X business jet due to public outcry and a reprimand from President Obama, who questioned the purchase given the bank's $45 billion government bailout.
- The incident served as a public relations hit for business aviation, amplified by negative media coverage despite the underlying financial details.
- Paradoxically, the new, more efficient jet would have resulted in a net savings of $4 million for Citigroup by replacing two older aircraft, along with additional fuel savings and warranty protection.
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