Part Of The Automakers Bankruptcy Restructuring

It may have started when then-General Motors CEO Rick Wagoner flew to Washington, DC in a private jet to discuss a federal bailout. His counterparts from Chrysler and Ford did the same, in separate jets, though Ford wound up not taking the government largesse. This week, a federal bankruptcy judge has ruled General Motors may terminate its leases for private aircraft as part of its restructuring under Chapter 11.

The Associated Press reports that Judge Robert Gerber approved the filing with no objections during the motion hearing. General Motors leases 7 aircraft and hangar space at Wayne County airport in Detroit. The company said late last year it would cease corporate jet operations on New Year's Day and attempt to see the remaining lease time on the jets.

Reuters reports the fleet includes two Gulfstream GV's and five medium-range Gulfstream G 350's. The planes are leased from a division of General Electric. GM spokesman Tom Wilkinson told reporters "The new GM will have no jets -- we're all flying Delta." 

The Washington Post says Chrysler dropped its two aircraft leases recently.  Ford, which has not taken a government bailout, said it is seeking to sell its corporate jet fleet, and has been leasing on an as-needed basis.

FMI: www.gm.com