Curbing Wage Reductions, Job Cuts and Layoffs: Use Corporate Jets

...Delphi has failed to make lease payments totaling $389,000 on a Learjet and Challenger aircraft owned by Bank of America since the Troy-based supplier filed for Chapter 11 on Oct. 8, according to court documents.

…According to a motion filed by Bank of America, Delphi rents a $24 million Challenger jet for $130,000 a month, as well as an $11 million Learjet for $64,000 a month.

The leases have been in effect since 2001. Delphi also pays about $1.2 million a year to Pontiac-based Pentastar Aviation, which is owned by Ford Motor Co. scion Edsel Ford II, to manage its operations.

…“Companies in bankruptcy have to be sensitive to the image presented by corporate jets. I always tell my bankruptcy clients to not have the steak at dinner, or use the jet when they don't have to.”

Van Conway, Birmingham, Mi. restructuring specialist.

Bill Vlasic, “Delphi creditors fight for payments: Use of corporate jets during bankruptcy could become issue between firm, UAW,” Detroit News, 12/09/05.