J.P. Morgan and his approach to luxury jets
What piece of news has been making waves and catching the fancy of everyone? It is the ambitious $138 million plan to buy two new luxury corporate jets and realize the concept of ‘the premier corporate aircraft hangar on the eastern seaboard’.
This escalation comprises of nearly $120 million for two Gulfstream 650 planes which are boasted as the ‘fastest’, ‘widest’ and ‘most comfortable’ private jets ever by its manufacturer. The facilities include superior cabin amenities, an optional stateroom and 12 interior designs to choose from. These two Gulfstream 650 planes will substitute two jets from the current fleet of four jets owned by the company.
Add to this the $18 million for a lavish renovation of the hangar at the Westchester airport outside the New York City. The lavish nature derives its meaning from the claim that it will be built with reclaimed wood, quarry tile and will also have a ‘vegetable roof garden’.
But there has been flak from some corners regarding the usage of TARP funds for this project. According to the ABC news, the company has received $25 billion in TARP funds and plans to consume a fraction of this money for the project. However, this claim has been categorically denied by the bank and it has informed that it will repay all the TARP money before it makes any payments for new planes or renovations.
The current issue of usage of TARP fund by the corporate bigwigs also faces harsh criticism from none other than President Obama himself. He advocated the introduction of regulations on executive compensation and on the disclosure of money spent on such perks. His concern immediately saw the impact as Citigroup suspended its plan of purchasing a new corporate jet from France.
However, the company plans to move ahead with the deal and as per the ABC news the Westchester officials are optimistic with the JP Morgan proposal as they feel that ‘it is the best deal for county taxpayers and the best deal for the environment’.
