Google's Private Jet: A (Part-time) Shareholder's Concern

A Billionaire fight has broken out over Google’s private jet. The boys have been fighting over details like who has a bigger bed and where the bar will go, rather than worrying about gassing up a plane designed for 180 people and using it as a private jet.

As a once-in-a-while shareholder, I worry about the lack of perspective of people who are willing to spend this kind of money for fun. You cannot argue a legitimate business purpose to this, as much of the usual time advantage of having a private jet is destroyed by using one that requires a gate at a major airport.

Advantage number 2 of a private jet, being able to accomodate sudden changes in schedules, is ridiculous with a plane that costs $20,000 just to take off, plus another $10,000 an hour to remain airborne (fuel is about 35% of the cost of running a plane) and that, of course, is not including the cost of the plane itself.

A shareholder may wonder: “If they are willing to spend that kind of money to save perhaps an hour over flying commercial, how can I be sure they’re getting the best price on a copy machine?”

I’m also not too wild about the entire executive team all getting on one plane on a regular basis.

Comments

[Doug Rivers:]

The article said is belonged to the founders personally, not Google. So long as they pay for it themselves, it's their business. But, you've got to wonder what meetings are like at Google if, as the article claims, Eric Schmidt has to tell them that they can have whatever size bed they want on their plane...

2006 Jul 07 08:16 PM

[Yaser Anwar_:]

I agree with Doug that as long as its their plane its ok. They are worth more than 10 billion dollars each, so i think they can quarrel over a plane. About the "shareholder concern," i don't think their shareholders worry too much, seen as they have built a phenomenal company & delivered paramount returns to shareholders.

I'm sure if you & even myself, were in their situation with such wealth, we'd be having our own tantrums. Every one does. From Bill Gates to Larry Elison, with the exception of Warren Buffet.

Besides, media likes to overinflate matters. I don't think you should be worried about their 'lack of prespective,' they are doing very well, personally & towards shareholders.

Yaser Anwar
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2006 Jul 10 02:15 AM

[Mark Porter:]

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2006 Jul 11 07:59 AM

[User 444121:]

Corporate jets make companies money, when used appropriately. The cost per hour for executives at a company Google's size is in the hundreds of thousands of dollars per hour, if not millions. Suddenly, an extra two to four hours using the airlines becomes extremely expensive over flying the corporate jet. Save 2 hours saves, say $200,000 times 10 executives on the jet. Sure, the flight may cost $50,000. But you just saved $1,950,000. You "bought" time.

The short-sighted, uneducated public can't wrap their heads around such large numbers. That's also part of the reason most people are poor and broke anyways. Comments from an average "joe" with massive debt and a near zero cash flow statement about corporate jet use should hold little water.

Jul 09 01:32 PM