GM Ends Airport Operations; Both GM, Ford Ground Corporate Jets
By Michelle Krebs December 2, 2008General Motors announced Tuesday it is ceasing its operations at Detroit Metro Airport in an effort to cut costs.
The elimination of General Motors Air Transportation Services, known by GM insiders as G-MATS and that operated from its own terminal at Detroit's airport, comes on the heels of Congress criticizing Detroit auto executives for flying their individual corporate jets to hearings at which they were asking for $25 billion in government assistance.
In its announcement, GM said "GM travel volume no longer justifies a dedicated corporate aircraft operation." The automaker said it is exploring options for transferring its aircraft to another operator.
The company also said it is pursuing sale of four of the aircraft so it can terminate the leases.
GM said it will shutter the facility at Metro Airport effective January 1, 2009. The jobs of 50 salaried and hourly employees are eliminated as the facility closes. GM added that it will work with the airport to seek a tenant for the balance of the lease, which expires in 2009.
Ford also said it was selling its corporate planes. It isn't clear what will happen to its operations at the airport, which are similar to GM's.
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