Company Stands To Lose Half Its Interest In The Plane At Today's Prices

In its annual shareholders proxy statement filed with the US Securities and Exchange Commission last week, the New York Times revealed that its corporate bizjet has been put on the market for sale.

The New York Post reports the plane is a Dassault Falcon 50EX, purchased by the Times in 1998 for $17 million. Advertised for an asking price of $9.5 million, the jet is outfitted with nine cabin seats, four armchairs, a lounge area and a sofa bed. A private broker told the Post that the average price for that plane in today's market is likely closer to $8 million.

The proxy statement also itemized an instance of personal use of the aircraft last year by Times Chairman of the Board Arthur Sulzberger Jr. at a cost calculated at $11,189, "based on the cost of fuel, allocated trip-related maintenance, on-board catering, crew travel expenses, landing fees and trip-related hangar and parking costs, as well as the related cost of any empty return flight.

"Because the Company-owned airplane was used primarily for business travel in 2008, we did not include the fixed costs that do not change based on usage, such as pilots' salaries, depreciation and the cost of maintenance not related to trips. Beginning in 2009, the Company no longer permits any use of the corporate aircraft as it is being marketed for sale," the statement said.

While on the one hand still offering big salaries and compensation for its execs -- CEO Janet Robinson received a total of over $5.5 million worth last year -- the Times seems to be struggling to keep pace with spiraling indebtedness, which is currently topping the one billion dollar mark. $400 million more is slated to come due in May, and another $300 million by March 2010.

In addition to the Falcon, the Times is trying to sell its share of the Boston Red Sox -- expected to bring between $140 and $150 million -- and just last week mortgaged its Midtown Manhattan headquarters to WP Carey & Co. for $225 million.

FMI: Read The Proxy Statement