RIM to sell off corporate jet as cost saving measures continue

Oh, Oh big ol' jet airliner. Don't carry me too far away.
By Bla1ze on 10 Jul 2012 02:49 pm EDT
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In what is probably the most uninteresting, yet still important RIM news of the day, Bloomberg has reported that RIM is looking to sell off one of its company jets to help cut costs even further within the organization. The nine-passenger Dassault Aviation SA F50EX is one of two Dassault Aviation aircraft's held by the company currently with the other being a Dassault F900EX that can fit up-to 14 passengers on a midrange flight.

Unnamed sources state RIM has a buyer for the jet with the suggested asking price between $6 million and $7 million, though the buyer has not been named as the sale is not yet complete. Inquiries from Bloomberg to RIM on the matter netted a response from RIM which also reference previous cost saving measures noted by RIM CEO Thorsten Heins:

“We’re looking at options with both our aircraft costs and finding ways to reduce our travel while still making sure we keep in close contact with our partners around the world,” “It’s all part of the effort to find ways to reduce costs and drive efficiencies that Thorsten Heins has talked about.”

With suggested yearly operating costs for the aircraft coming in at $2.2 Million, it makes sense that RIM would be looking to offload some of the assets they currently hold to help achieve their cost saving goal of $1 Billion. Realistically, RIM is also a large property holder as well so it wouldn't be all that surprising to see them looking into business real-estate brokers as well eventually as long as it helps save the company money in the longrun. As sad as it may sound, I'm kind of curious how much they'll actually be saving by selling the jet and then presumably using commercial airlines.

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Source: Bloomberg

33 comments

sgt_snacks-64

"finding ways to reduce our travel while still making sure we keep in close contact with our partners around the world,”,

They should get Skype on the Playbook /sarcasm

lilmateo91690

Forget sarcasm, that's real life

menaknow

If there new plan is to rely on Air Canada with it's strikes ... They are screwed!

Hand_Sanitizer

May I suggest "Go To Meeting"? Hahahaha!! RIMPIRE strikes out!!

BB_Bmore

I'll be looking for this on craigslist. I wonder if they will trade?

BruvvaPete

Saw it on eBay. I put in a bid.

sjc1963

This is a sure sign of trouble when they are starting to liquidate assets.

mckillio

Or leadership. True signs of trouble popped up long ago.

axllebeer

I quote this from someone on another site:

"I'll strike a deal for that plane. How about $200 with a 2-year contract? And, of course, I would expect unlimited data (gas) for $30 per month. Sound like a deal?"

Ben1232

...I bet Kevin bought it.

axllebeer

Ohh, I wouldn't bet against you on that...

But he might be short on cash from buying apps. :)

BerryRipe

I actually did not even know they had a jet much less two of them.

Well all I know is when I'm in need of extra income because time are financially rough then I think about what I have that I don't need than can sell fast and for a decent dollar. How many of you have two jets and one to get rid of? I didn't think so, so when you get a buisness and have a jet of your own then come and post some negative comments.

It's all about cutting costs and cleaning house right now. Consolidating and minimizing to where they can refresh the company. Come on guys Mike & Jim had those Jets, it's not like Thorsten bought them, give the man a chance here. If the company fails then you can say you told me so but until then quit hating.

LuayS

Why not sell both? God forbid they fly economy class.

ekafara

We all know how that goes, they get into the booze and kicked off :p

kingofthenerds

Let me guess, the buyer they have lined up is someone with a last name starting with B or L

dagerlach

It would make more sense for them to own a fraction share(s) of a business jet with a company like Flight Options or Netjets. They can pick up a couple fractional shares in a midsize and a global and save some cash as well as have additional uplift. Hopefully, their flight depart has made this recommendation.

Tenkawa

I have worked for a company with a private jet (6-person) for the CEO. The remarks that I heard from Finance on it are as follows:

It is more expensive than commercial aviation (plane+pilots+mechanic(s)+parts+hangar space+fuel+landing fees).
However there are three reasons why it has advantages. 1) No lineups, 2) Variable flight plan, 3) Flight schedule fits the company schedule, not the other way around. Need to delay for an hour due to an important call, sure.

Having one jet is normally enough. 2 was probably due to the co-CEOs (But who got the larger plane :)

The flight plan for the company I worked for would often be Vancouver->Seattle->LA->3 or 4 places in south america->Florida->Chicago->Toronto->Vancouver/Kelowna

W Hoa

The sale of the intermediate range jet was largely symbolic and was mostly used for short to medium haul flights. Commercial airlines will work in this scenario.

The larger jet was kept due to its ability to fly 4500 miles non-stop. An important consideration in view of RIM's international business.

Hobbes2099

There's something incredibly inhumane about firing 15,000 employees and only then start selling the private jets.

Sure, the savings from selling the plane are cents compared to the savings from HR restructuring, but man, don't fly on your own plane when you're putting people out on the streets after years of service.

litig8or98

Given the problem a while back with the RIM employees who created a "disturbance" on a commercial aircraft, I would think that having their own planes might be very desireable.

Of course, maybe that will help with the layoffs; if i recall correctly, those two individuals aren't with RIM any longer.

martinjdub

2.2 million...plus expences, that a lot of jobs saved.

Android Market for QNX

haha, I saw this on Yahoo! first. It's not all bad, the jets are a luxury not a necessity. Although I'm sure company execs will miss the luxury of being able to party on a private jet :)

jarbootsy

This is a fiasco waiting to happen. Remember what happened when Jim made Campbell fly commercial to China?

dandbj13

I bet they have some nice furnishings in the executive suite that could fetch a tidy sum. I wonder if they are down to taking up weekly collections.

jrohland

I would prefer they use it as a test bed for QNX running flight instruments.

jrohland

I would prefer they use it as a test bed for QNX running flight instruments.

Liquid_Revolver

Wow selling the jet...LOL, please dont make this news. It makes RIM look worse if that is possible. I mean RIP RIM has a whole new meaning...they should have kept this private. Looks weak.

Joel_Zimmerman

Now probably the most expensive ex-BlackBerry merchandise ever gone on sale. Registration is C-GXBB. I wonder if it will change when it passes onto different hands?

michadam

Nobody needs to earn 12 million a year. Maybe if some executives. Took a pay cut they could keep some employees and get BBM10 out earlier 10 million could cover allot of employees