Footnoted.org writes: It’s the start of Memorial Day weekend and judging by the various news reports, the $4 a gallon gas is having a major impact on people’s travel plans this weekend. But some folks are still managing to travel and judging by the planes leaving Teterboro right now, Martha’s Vineyard appears to be a top destination.
Indeed, the market for corporate jets has apparently never been better, judging by this 8K which Williams-Sonoma (WSM) filed late yesterday and which a footnoted regular brought to my attention. As the filing notes, the company sold its Bombardier Global Express for $46.8 million last week, netting a pre-tax gain of $16 million, which the company estimates will be 9 cents a share. The big payday, the filing notes, was due to a “robust private aviation market”. The jet was sold to an unidentified and unrelated third party. A quick skim of earlier filings shows that Williams-Sonoma redacted the cost of the plane when it was purchased several years ago, so we have to take their word that it cost just over $30 million.
The second part of the filing notes that “in order to address the company’s ongoing aircraft needs”, Williams-Sonoma entered into an agreement with a company controlled by Chairman and CEO, W. Howard Lester, to lease a Bombardier Global 5000 for $375K a month for the next 36 months. In the filing, the company says that this will save it lots of money and promises to give a fuller accounting of the cost savings when it files its next 10Q. Read more from footnoted.org.
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