Enron's Managers Fly With Executive Privilege

ByABC News
January 31, 2002, 2:49 PM

Jan. 31 -- Enron executives and lawyers appear to be going bankrupt in style, traveling to bankruptcy court hearings in New York in the company's two remaining private jets.

An Enron spokesperson has confirmed a total of eight corporate jet trips to New York and Washington since the bankruptcy, saying the flights were more efficient than commercial travel.

A round-trip commercial flight, Houston to New York, could be as little as $365 in coach. According to aviation executives, the same trip on an Enron jet would cost tens of thousands of dollars.

The Enron executives seen leaving the airport Wednesday used the corporate jet to attend the funeral of J. Clifford Baxter, a former Enronexecutive who committed suicide on Jan. 25. Enron says that is the only nonbusiness trip since the bankruptcy.

"Of course I have sympathy for the Baxter family, but for them to use the corporate jets to fly the total corporate entity to any function at this point again seems arrogant," said Rod Jordan, a former employee and chairman of the Severed Enron Employees Coalition.

Former Employees Outraged

Laid-off Enron employees, who stood in line today for $1,000 checks from a group collecting donations and returned political contributions, were outraged to hear the luxury jets were still in the air.

"This is atrocious," said former Enron employee Cindy Cicchetti. "What's wrong with coach? That's what I fly."

The luxury private jets were part of the Enron culture created by its former chairman and CEO, Kenneth Lay.

Not only did Lay use his $45 million jet for business, but he regularly used it for strictly personal trips for him and his family, at a cost of $334,000 in the year 2000 alone.

Months before the bankruptcy, Lay defended the personal trips. When asked what kind of message it sends to the rest of the company, he responded, "Well, I think it gives my senior people something to aspire to."

Enron says Lay's favorite jet has already been sold, and that the remaining two jets are for sale.