It is rather unfortunate when a populist leading executive branch administration of the federal government takes it upon themselves to initiate class warfare amongst the society. Perhaps it’s true that the private corporate jet is a symbol or the epitome of wealth; a flying limousine if you will. Nevertheless, you can call it what you will, but in the US, we have many high-tech jobs in the general aviation and corporate jets sector.
Suffice it to say; we are very good at building the best flying limousines in the world. Okay so, let’s talk about this for second shall we, because I would like to give you an example of how far this class warfare has gone, and how damaging it is to the stability of capitalism and free markets in the US.
Now then, there was an interesting piece in the Wall Street Journal on May 9, 2012 titled “Chesapeake’s Private Jets Are in the Cross Hairs,” by Mark Maremont and Daniel Gilbert. Turns out there was a lawsuit filed against the firm after their corporate aviation costs exceeded 10 million dollars more than estimated or disclosed during an SEC filing and conference call, but I’d really like to ask why the lawsuit, cost overruns in companies are common, and in this case Jet Fuel has skyrocketed, so has corporate jet insurance and the like.
Not to mention the fact that the Obama Administration has taken the corporate jet sector to task as a symbol of the 1% jet-setting around at the expense of the 99%, it’s basically the populist or socialist political rhetoric that’s making things worse in the sector. For instance Wichita KS has the most high-tech manufacturing jobs in the country thanks to general aviation calling it their home.
The lawsuit would have perhaps been seen as frivolous prior to the Obama Administration hitting the scenes, but now the general public sees general and corporate aviation in a bad light, thus, a jury is likely to allow for a big award if this case goes to trial, and I am certain the company realizes this, and will have to succumb to legal extortion (my opinion) in this case. Still I ask, where is the common sense in all of this?
Why did the costs in general aviation and the cost of operating a fractional jet increase in the first place? It seems as if the Obama Administration has caused the problem, and now the lawyers, regulators, and everyone else is coming out of the woodwork calling the 1% evil, even if in this case Chesapeake energy’s corporate jets are nothing more than a business tool and with all the commercial airline travel hassles due to TSA rules, some companies are forced into flying more executives other ways.
You see my point? Indeed I hope you will please consider all this and think on it. If we don’t do anything about this, you can expect that China will be manufacturing corporate jets, and the general aviation industry will come to a close in the US.