A Scottsdale, Arizona executive charter jet company, Jet Now Executive Charter Inc., has just filed for Chapter 7 bankruptcy. Attorneys at bankruptcy law firms nationwide have seen an increase in the bankruptcies of companies that cater to wealthy individuals and corporations, especially when cheaper alternatives are available.
Less Ostentatious Alternatives
Like a G6? We all would, wouldn’t we? From the high-profile corporate executive to the latest rap video, nothing epitomizes the frivolous expenditure of mass quantities of available cash quite like the private jet. Sure, there may be ways to justify it, but in most cases, a standard commercial flight will get you where you want to go for a fraction of the cost. Even a first-class ticket is downright affordable in comparison.
When the economy goes south and companies look for ways to save money, the first things to go are the least necessary expenses. Companies can cut millions from their budgets simply by switching from private jets to commercial airlines.
Bad for Public Relations
If you were a corporate CEO in this economy and you knew you had to lay off some staff or explain to the board of directors that your company had just lost millions of dollars, how would it look if you were tooling around in a private jet?
Back in 2008, CEOs from the “Big Three” American automakers did almost exactly that. They all flew their corporate jets to D.C. to beg American taxpayers for bailout money. It was a public relations nightmare. In this struggling economy, flying in a private jet doesn’t present the image that you or the company are making the cutbacks necessary to survive, no matter how you try to justify it.
Bad for Business
Until this economy begins to show some life again, the corporate jet is going to be a tough sell for anyone but the mega-rich or mega-important. Jet Now Executive Charter inc. in Scottsdale, Arizona, must have felt that there was no chance for survival. Instead of filing for chapter 11 bankruptcy, which gives businesses the opportunity to be rehabilitated, they filed a chapter 7 bankruptcy, essentially closing the doors to their business forever.