When General Motors executives headed to Washington D.C. in November 2008 to ask for a government bailout, they arrived in private jets and were ridiculed by lawmakers. Well, GM will now be using chartered planes to fly executives to and from meetings with potential investors as it moves forward with an initial public offering.
The U.S. Treasury Department and the White House said Thursday that they had no role in GM’s decision to use the planes. The policy approved in early 2009 by the Obama administration allows GM to rent planes given the use is deemed appropriate.
White House spokesman Robert Gibbs said it was “not accurate” to say that the government approved GM’s decision to use private jets.
“GM’s corporate travel policy allows charter flights when supported by a business rationale,” said GM spokesman Tom Wilkinson. He went on to say that it is “consistent with our requirements” under the government bailout agreement.
GM announced on Nov. 3 that it will kick off a $13 billion initial public offering with the prices of the common stock coming in between $26 to $29.
– By: Omar Rana
Source: Detroit News