As stores close, Starbucks buys a jet

[Matt Molnar]

As stores close, Starbucks buys a jet (http://seattletimes.nwsource.com/html/businesstechnology/2008602907_starbucks08.html)

By Melissa Allison

Seattle Times business reporter

Starbucks bought a $45 million corporate jet last month at about the same time it told employees that it is reconsidering how much it will match in their 401(k) plans this year.

The new jet, a Gulfstream 550, spent its first two weeks under Starbucks ownership in Hawaii, according to flight records at FlightAware.com.

Starbucks ordered the jet three years ago, according to spokeswoman Deb Trevino. She said the Seattle coffee company determined canceling delivery would be too expensive. She declined to say who took the jet to Hawaii over the holidays, but said it was a combined personal and business trip. She pointed out that Starbucks policy requires employees to reimburse the company for personal use of the jet. That policy was instituted in fiscal 2007, when Chairman Howard Schultz reimbursed the company $400,919 for flights. [Full Article (http://seattletimes.nwsource.com/html/businesstechnology/2008602907_starbucks08.html)]

[flyboy 28]

I think Tommy's contributions went toward the altimeter needle. :)

[Mateo]

Starbucks booked a profit of 393M in Q3 of this year, and 1.99B in the last year that they reported. If they want a G550, good for them! It's N211HS, but has N721V reserved.

[T-Bird76]

I think Tommy's contributions went toward the altimeter needle. :)

Nah I prob own at least half of the entire plane. I think I'm keeping the Starbucks in Bohemia in business with my purchases alone. Although I have discovered a new coffee...Gorilla Coffee in Park Slope, Brooklyn...my god its good ****!

[lijk604]

Why don't the news companies report on something interesting...like real news. Corporate jets are a business tool, the flexibility to be able to go whenever and wherever the CEO, top level executives, etc...need to go at a moments notice can be the difference between a done deal and a lost deal. Starbucks bought a jet, good for them! Im sure they will use it properly.

[Matt Molnar]

Why don't the news companies report on something interesting...like real news. Corporate jets are a business tool, the flexibility to be able to go whenever and wherever the CEO, top level executives, etc...need to go at a moments notice can be the difference between a done deal and a lost deal. Starbucks bought a jet, good for them! Im sure they will use it properly.
Agreed. Just rabble rousing from a business reporter who doesn't seem to know much about business. The closing of those stores and the jobs that were lost are a shame, but there is no connection between stores closing and the company buying a jet.

[mmedford]

Also the order for this jet was placed 3 years ago. It takes time for delivery, and 3 years ago Starbucks could not have foreseen the future.

[T-Bird76]

Why don't the news companies report on something interesting...like real news. Corporate jets are a business tool, the flexibility to be able to go whenever and wherever the CEO, top level executives, etc...need to go at a moments notice can be the difference between a done deal and a lost deal. Starbucks bought a jet, good for them! Im sure they will use it properly.
Agreed. Just rabble rousing from a business reporter who doesn't seem to know much about business. The closing of those stores and the jobs that were lost are a shame, but there is no connection between stores closing and the company buying a jet.

Matt I don't think he is implying there is a connection. However in times like this the public perception of them buying a jet really isn't so good, the plane should be parked and leased out. My company two years ago was looking at buying a jet and we decided then that the perception to the investors, customers and the employees wouldn't have been positive so our CEO fly's commercial.

In fact we just received a hybrid Escalade for our CEO at no cost from GM. Not only does that contribute to our "Green" initiative but since we were able to secure the vehicle at no cost since we do so much volume with GM we didn't have to spend our investors cash.

Perhaps James Dolan should take a lesson from our CEO....Dolan takes a helicopter to work everyday...tell me how that is justified? Stan Bergman the CEO of my company which is three times the size of Cablevision commutes from Manhattan. Cablevision isn't a worldwide company yet has a fleet of aircraft...total waste of money...heck they aren't even a nation wide company. I guess Jimmy D thinks he's too good to sit in traffic.

[Matt Molnar]

Update: Starbucks is bowing to pressure and selling their new jet. Of course no one is buying used jets right now, so they're probably gonna lose their pants on the deal.

[MarkLawrence]

Probably end up selling it to Netjets or some outfit like that and loaning it back - so they still operate it but don't "own" it! :lol:

[dimamo1983]

Matt I don't think he is implying there is a connection. However in times like this the public perception of them buying a jet really isn't so good, the plane should be parked and leased out. My company two years ago was looking at buying a jet and we decided then that the perception to the investors, customers and the employees wouldn't have been positive so our CEO fly's commercial.


That's exactly the connection being implied by this and similar BS articles and exactly the reason the public perception of anyone buying a jet isn't so good. Stores are being closed because there are just simply too many of them, not because they need to scramble a few million to make that last payment for the jet.

While I can more or less see an argument against bail outed companies making big purchases with public money, Starbucks have not gotten any of our tax money (yet) so nobody has the right to judge them for what they do to keep their business running. If anyone really wants to cry foul, write to Nancy Pelosi and ask her to stop wasting a ton of our money by commuting back and forth between DC and California in a government 757! At least get her to downsize to a G-V ;)

Dima

ps. I really don't like Starbucks, I think their coffee is way overrated and overburned :)

[Mateo]

If anyone really wants to cry foul, write to Nancy Pelosi and ask her to stop wasting a ton of our money by commuting back and forth between DC and California in a government 757! At least get her to downsize to a G-V ;)Is this story from two years ago still going around? The original mention of the C-32 (757) came from the House Sergeant-at-Arms, an entity that's independent of any political party, and that has nothing to do with the Speaker's office. At no time did the Speaker request the use of a C-32, nor has one ever been provided by the Air Force for her to use. The standard aircraft used by the Speaker to travel to her constituents in San Francisco is the proper aircraft for the mission - a C-37, which is, yes, a G-V. The only thing that needs to be downsized is a sense of false outrage.