Citigroup going through with $50 million plane order

[Xavier434]

Looks like after some pressure from Obama, Citigroup has decided not to take the new plane.

Link

 

[jman19]

Originally posted by: Capt Caveman

Originally posted by: jman19
Wouldn't it be worse to just dump TARP on the fees than to acquire an asset with the money?

They aren't using TARP money though.

So then what's the problem? (thanks for proving my point btw)

 

[EagleKeeper]

Originally posted by: BeauJangles

Originally posted by: Starbuck1975
Citigroup placed the plane order years ago, and to cancel the contract now would cause them to incur millions in penalties...that, and they are selling some of their outdated fleet, and intend to contract out some of their fleet, to pay for the new plane.

From a PR standpoint, the timing is horrible, but a knee jerk reaction at this point for the media talking heads to spin over.

I agree it's a bad PR move, but Citi is selling two planes for $45 million and buying a $50 million dollar new plane. They aren't using TARP funding. I guess I don't really see how this is a big deal.

If they are having to go to the Feds for assistance, then the perception is there; they should be able to foot their own bills. Money spent on the plane could be used to fix their mistakes.

Perception is a word that the big egos need to learn about

 

[tw1164]

They're no longer taking delivery of the plane.