Citi, which has received US$45 billion (S$67 billion) US government capital to help it weather the financial crisis, had indicated earlier in the week plans to reduce its fleet of corporate aircraft and purchase at least one that is more fuel efficient. -- PHOTO: AGENCE FRANCE-PRESSE
NEW YORK - CITIGROUP said on Tuesday it had 'no intent' to take delivery of a new corporate jet, news of which had stirred ferocious opposition from the White House and Capitol Hill.
Citi, which has received US$45 billion (S$67 billion) US government capital to help it weather the financial crisis, had indicated earlier in the week plans to reduce its fleet of corporate aircraft and purchase at least one that is more fuel efficient.
The New York Post reported the banking giant was readying a purchase of a US$50 million French-made Dassault Falcon 7X, with a plush interior, leather seats, sofas and a customisable entertainment centre.
'We have no intent to take delivery of any new aircraft,' a Citi spokesman said.
On Monday, the company said it had intended to accept delivery because of 'millions of dollars in penalties' if it had refused.
Democratic US Senator Carl Levin, who had assailed the plan on Monday, said in a statement on Tuesday: 'I'm glad they have changed their minds.
'It is unconscionable and unacceptable for a corporation to purchase a fancy new custom jet to fly around their executives while the public is pouring billions of dollars of taxpayer money into the company, trying to keep it afloat,' said Mr Levin.
White House spokesman Robert Gibbs had also said that President Barack Obama believed 'that great care should be used anytime the taxpayers' money is being used', referring to the bank rescue funds. -- AFP
