GM Can Use Charter Jets for IPO Roadshow–NY Times

AINalerts » November 4, 2010
November 4, 2010, 11:54 AM

According to a report in today's edition of The New York Times, the U.S. government has cleared General Motors to use charter aircraft for its initial public offering (IPO) roadshow, starting today. GM, which yesterday announced a $13 billion public offering, did not respond to AIN's request for comment at press time. This will mark the first time that GM has been allowed to use private aircraft since Dec. 31, 2008, when the automaker sought U.S. government assistance. As part of the rescue plan, the government required GM to divest its corporate aircraft and prohibited any private jet usage by employees. However, non-employee directors could “use charter aircraft for travel only in North America and only when a clear business rationale is stated” in their duties as directors, according to an SEC filing. During 2009, GM sold its business jets “or any interest in such aircraft, and private passenger aircraft leases, and we did not maintain company aircraft for employees' business or personal use,” the SEC filing further stated. Aviation trade groups welcomed news that GM executives could soon be flying aboard business aircraft again. “Chartering an aircraft allows businesses to maximize use of their employees' time, efficiency and productivity,” NATA vice president of government and industry affairs Eric Byer told AIN, “including visiting multiple locations in a single day, something that simply is not possible when flying the airlines.”

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