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News & ArtsWednesday, January 28, 2009
Economy Need an Almost-New Corporate Jet?
Posted by Dominic Holden on Wed, Jan 28, 2009 at 1:12 PM
Starbucks is attempting to sell the executive chariot it purchased last month, reports Cityfile. But just driving it off the lot will cost them millions: Starbucks bought the 19-seat Gulfstream 550 for an estimated $45 million, but the don't-lay-off-people-and-buy luxury-jets market may pay only about $30 million. Behold its in-flight glory:
According to a sales brochure (.pdf), it only landed 15 times. In other words, that jet cost Starbucks one million dollars per flight. Even worse, the brochure says that the cabin provides no espresso on board—only a "single coffee maker."
UPDATE: The Seattle Times reports Starbucks just announced 6,000 layoffs and 300 store closures.
2
I've never understood the corporate jet. Chartering a jet for groups of employees sometimes makes sense, but owning one just seems like a money hole, and a status symbol no one has been impressed with since the 70s.
If money isn't an option, I'd rather fly first class. It'd still be cheaper.
If money isn't an option, I'd rather fly first class. It'd still be cheaper.
6
Psst. Schultz sez 350 more immediate layoffs at HQ, 6,000 more worldwide this year. Hard to keep up with, innit?
http://seattletimes.nwsource.com/html/bu…
http://seattletimes.nwsource.com/html/bu…
7
@2, Do you think CEO's are willing to sit in first class with all the middle managers? And have some rubes taking their family to Disneyland brush by them? You need to read up on the values of white people some more.
8
I think they couldn't find a jet that allowed them to burn the coffee by roasting it with jet fuel.
CEOs should be stuffed into the luggage compartment on a case by case basis, after being strip searched.
CEOs should be stuffed into the luggage compartment on a case by case basis, after being strip searched.
10
Did the article mention what happened to the exec who instigated and approved this purchase? That must have been a pretty sight. You bought a WHAT?
Executive jets are more about total freedom of routes and departure times than executive luxury. Let's say you need to fly a team to Torino or Melbourne on a moment's notice; commercial flights aren't going to get you there no matter how much money you're willing to spend. And private jets enplane and deplane in minutes, not hours.
Executive jets are more about total freedom of routes and departure times than executive luxury. Let's say you need to fly a team to Torino or Melbourne on a moment's notice; commercial flights aren't going to get you there no matter how much money you're willing to spend. And private jets enplane and deplane in minutes, not hours.
11
Why don't they just do like the old Bomber Gas Station down in Milwaukie, OR and install the thing on top of one of their locations? (the Denny & Summit $B would be ideal) It would definitely draw the curious, and probably improve in-store sales tremendously.
'course, $45 mm IS a little steep for a marketing gimmick, but then, what else are they going to be able to use it for?
'course, $45 mm IS a little steep for a marketing gimmick, but then, what else are they going to be able to use it for?
12
Ok, the reason for corporate jets. Lets assume it costs $500/hour to operate. Your overpaid executive cost you $700/hour. If the jet can save your company an hour of the executive's time by not sitting with us cattle at the airline waiting room(s), then its a money saver.
Better yet, don't pay those assholes $700/hour.
Better yet, don't pay those assholes $700/hour.
14
umm-if they paid 45 mil. for it and got 15 landings- then they paid 3 mil. per flight.
Even at the cheapo price it's 2 mil. per flight.
Maybe it's math like that that lead us to the place we are now.
Even at the cheapo price it's 2 mil. per flight.
Maybe it's math like that that lead us to the place we are now.
15
#10 - I think that's how these things are ever justified, but I have a hard time believing that's a necessary component of doing business, even at the Fortune 500 CEO level. If anything, there's a lifestyle built around unreasonable expectations, held purely for the sake of a certain lifestyle... if that makes sense. I do, however, now know the proper term for the act of boarding a plane.
I'm actually acquaintances with a family that owns their own jet similar to that (not acquaintance enough to ever see the inside of it) - when they're not using it, it gets rented out for charter. The whole things seems to make sense, in a way that doesn't entirely make sense to me at all.
I'm actually acquaintances with a family that owns their own jet similar to that (not acquaintance enough to ever see the inside of it) - when they're not using it, it gets rented out for charter. The whole things seems to make sense, in a way that doesn't entirely make sense to me at all.
18
@15 You wrote, "If anything, there's a lifestyle built around unreasonable expectations, held purely for the sake of a certain lifestyle... if that makes sense."
That makes sense and explains much about the CEO class in corporate culture. It explains how the failed Merrill Lynch CEO could have spent over a $1 million renovating his office (including a $70,000 toilet) just months before they sold out to BOA, when he was most certainly aware that major change was on the horizon. Among many other examples that don't see nearly as much publicity.
That makes sense and explains much about the CEO class in corporate culture. It explains how the failed Merrill Lynch CEO could have spent over a $1 million renovating his office (including a $70,000 toilet) just months before they sold out to BOA, when he was most certainly aware that major change was on the horizon. Among many other examples that don't see nearly as much publicity.
19
@ 14) If they bought it for $45 million and sell it for $30 million--a $15 million loss on 15 flights--that's a cost of $1 million per flight.
23
@3 despite the sarah palin yay i sold things on ebay concept, it's not necessarily the best idea to sell an item of high value on ebay. and this is coming from someone who's been selling on ebay for 8 years, loves ebay, and has even periodically survived entirely on sales from an ebay store.
the thing about ebay is that their fees are a percentage of your sales. specifically, for items over $1,000, it's "8.75% of the initial $25.00 ($2.19), plus 3.50% of the initial $25.01 - $1,000.00 ($34.12), plus 1.50% of the remaining closing value balance($1000.01 - closing value)"
for inexpensive items, the fee is a drop in the bucket compared to the profit you make. but for pricy items, a small percentage can add up. i really wouldn't want to pay $450,000+ or more in ebay fees.
the thing about ebay is that their fees are a percentage of your sales. specifically, for items over $1,000, it's "8.75% of the initial $25.00 ($2.19), plus 3.50% of the initial $25.01 - $1,000.00 ($34.12), plus 1.50% of the remaining closing value balance($1000.01 - closing value)"
for inexpensive items, the fee is a drop in the bucket compared to the profit you make. but for pricy items, a small percentage can add up. i really wouldn't want to pay $450,000+ or more in ebay fees.
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