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RIM has its own jets

  • Posted by Michael Carroll
  • July 12, 2012 9:20 AM BST

Just stumbled on an article in the UK's Guardian newspaper on RIM considering selling it's corporate jets, and can't help thinking - "RIM has its own jets?"

 According to the article, the firm has "two executive Dassault jets, which can seat nine and 14 people" and is mulling selling the smaller of the two to cut costs.

Well, d'uh. Sell them both. The nine-seater alone could be worth up to $7 million, and that's not including the cost of running it, which includes ground crew. When your revenues have fallen by a third quarter on quarter, and you've slipped to an operating loss margin of 18%, you can't afford luxuries like a private jet. Perhaps more importantly, when you're shedding staff like they're going out of fashion, you definitely can't afford your own aircraft.

How would you feel if, as a talented engineer, your company preferred to sack you rather than ditch unnecessary executive toys?

The story also calls into question how serious the firm is about cutting costs. Even one private jet is a huge operational cost, but two? Come on!