Cost of having a Private Jet

At JCPenney, we're divesting our three private planes to reduce our cost.

He' JCPenney's sold three of his private planes. Penney's estimates that these jet aircraft cost the company between $5 million and $10 million a year. Estimates are that it will get about 20 million dollars from the sales. At JCPenney, he masters his own style of playing boy to save money. Barely a months after the flight of famous CEO Marvin Ellison to Lowe's, JCPenney announces that it would sell some of its most luxury asset.

Unknown to some, the retail dealer has a private jet portfolio comprising a 2001 Gulfstream IV-SP, a 2009 Gulfstream 450 and a 2010 Gulfstream 450, Dallas News said. Published on Thursday in a lawsuit, the firm estimates that the operating costs of these aircraft are between $5 million and $10 million per year.

A cost that the enterprise, burdened with 4.1 billion dollars in long-term debts, cannot easily bear. "The JCPenney pursues the sales of its commercial jetliners as part of the company's on-going efforts to administer expenditure in all facets of the organization. Penney is valued in the submission that it will get about $ 20 million from the sales of jetliners.

One of Ellison's obligations was to take part in a program known as the Key Associate Protection Program, which involved him using the corporate jet for all corporate and private trips for safety at work. Dallas News said he was the first chief executive officer to limit his use of the plane to $150,000 a year.

While Ellison was ready to turn the business around, he leapt onto the boat at a turbulent moment, say analysts. "Marvin Ellison's leaving JCPenney couldn't have come at a less favourable moment for the troubled retail group. Ellison's turn-around programme has worked in part but is far from complete," said Neil Saunders of GlobalData Retail in a statement to customers after his withdrawal was heralded.