In a recent interview Airbus CEO Tom Enders said he felt he had been “treated like a criminal and stigmatised” by “unfounded criticism” linked to a probe into insider trading at parent group EADS.
Enders reportedly sold 50,000 stock options in EADS in November 2005 for a pre-tax profit of more than $990,000. Problems with the Airbus A380 superjumbo jet started to appear around that same time.
In June 2006 the French stock market authority AMF launched an investigation into possible insider trading at EADS, which revealed problems with the A380 that caused its share price to plunge.
Enders has accused the AMF of leaking information to the press and tarnishing his good name. Read.
New Delta CEO Richard Anderson will reportedly be paid an annual salary of $600,000. However, Anderson could earn another $15 million in performance-based incentives.
Here is the breakdown of the additional $15 million:
This Saturday Anderson will become eligible on to earn an additional $11 million in company performance-based incentives.
According to a document filed outlining those incentives, that sum is in recognition of the substantial compensation awards that he forfeited by leaving UnitedHealth Group where he served as executive vice president.
Anderson will also be eligible to receive another $4 million in performance-based pay next year. Read.
Spirit Airlines CEO Ben Baldanza is in hot water this week for talking too much smack.
The story goes like this:
A couple by the name of James and Christine of Orlando wrote a letter to Spirit Airlines asking for compensation because they missed a concert in Atlanta after their Spirit flight was delayed by about three hours. The couple also cited poor customer service when they asked to be reimbursed not only for their $73.60 airfare, but also for their hotel, concert tickets and airport parking…for a grand total of a company crippling $376.84.
Then fellow blogger Alex Rudloff wrote about the story on his blog. That’s when the complaint started to pick up new momentum.
The couple took their complaint one step further by emailing Spirit CEO Ben Baldanza directly. But here’s the thing…they also copied several other Spirit employees on the complaint.That’s when the email challenged CEO hit “reply to all” in his response.
And his reply?
“We owe him nothing as far as I’m concerned. Let him tell the world how bad we are. He’s never flown us before anyway and will be back when we save him a penny.”
According to the USA Today, Alex Rudloff’s post on the story has been gaining momentum. It’s now been picked up by several other blogs, including The Consumerist, Jaunted, Gadling, elliot.org, Upgrade: Travel Better a blog by FareCompare.com CEO Rick Seaney and now by CEOSmack.
This lack of judgement by Baldanza is now starting to come back to haunt him. The comment trail on blogs far and wide is starting to grow, USA Today has gone national with the story and it won’t be long until the small airline CEO’s arrogance and downright rudeness starts to affect ticket sales.
Today Delta Airlines named former Northwest Airlines CEO Richard Anderson as its new Chief Executive Officer.
Anderson’s appointment as Delta’s chief immediately sparked speculation that Delta and Northwest could join forces. However, Anderson said that there are no plans for a merger between the two airline corporations.
Anderson told reporters that in the long run the airline industry might see some consolidation, but that is not Delta’s focus right now. Industry insiders feel that its only a matter of time until Anderson changes his tune and merger talks start to really heat up.
Besides the consolidation issue, the Anderson appointment also raises questions about Chief Operating Officer James Whitehurst’s future with the airline. Whitehurst had been one of two top internal candidates being considered for the top spot. Read.
We reported a few weeks back that Hedge Fund manager John Devaney of United Capital Markets had run into some tough times…having to put his luxury yacht up for sale. Devaney was seeking $23.5 million for his 142-foot yacht, “Positive Carry”.
We have now learned that Devaney has put his helicopter on the sales block. He is reportedly seeking $10,995,000 for the high-end Sikorsky S76C helicopter. According to the brochure which markets the helicopter to prospective buyers, the reason for the sale was “changing corporate travel requirements.”
Devaney also owns a Rolls-Royce, a Gulfstream Jet, a 12,000-square-foot waterfront mansion in Key Biscayne, Florida as well as a few Renoirs and a valuable 1823 reproduction of the Declaration of Independence.
We have all envsioned the flying car to look something like the car in the photo to the left. However creating such a vehicle has proven extremely challenging for those attempting to bring this dream to reality. Now DayJet CEO Ed Iacobucci is looking to forge new ground when it comes to the flying car…well sort of.
Iacobucci is looking to revolutionize automobile transportation. He plans to do it by offering an air transportation alternative with the launch of his new air taxi service. His vehicle of choice: The Eclipse 500, the first Very Light Jet (VLJ) to be used in commercial fleet operations.
Travelers consistently prefer a 50-minute flight in an Eclipse to a 300-mile trip by car, said spokeswoman Vicky Harris. While no traveler has ever taken a 50-minute flight in an Eclipse, it may nonetheless be a reasonable answer if presented with the two options — associated costs notwithstanding. The car is DayJet’s real competition.
“You don’t have to go through Atlanta to get to Gainesville, okay? That’s a promise,” said Iacobucci. Despite that example, though, the initial cities to be served have yet to be named. Fares are expected to range from $1 to $3 per mile.
DayJet will operate per-seat on-demand jet service between DayPort™ locations, a growing network of full-service community and regional airports – where passengers bypass crowds and congestion.
By the end of 2008, the DayPort network is planned to grow to more than 40 destinations across the Southeast including Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.
Each jet will be flown by a two-pilot crew and carry up to three passengers. The company is on record as having ordered 239 jets, which, barring special arrangements often granted by manufacturers like Boeing and Airbus, would suggest a near $30 million investment in the form of deposits.
