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...

[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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[Mark Porter]

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