Public indignation makes Citi and RBS abstain from buying jets

Two bailed-out banks, Royal Bank of Scotland (RBS) and Citigroup have cancelled orders for luxury private jets. 
 
Last October, RBS had saved about $45m (£31m) that were planned to be spent for the purchase of a new long-range Falcon 7X, as revealed by the manufacturer, Dassault Aviation, during its annual results report. The jet was being ordered for Sir Fred Goodwin, the former chief executive, and his management team to replace RBS's existing jet, which was put up for sale by new chief Stephen Hester

A spokesman for RBS said the "company decision" on cancellation of the order was made before Mr Hester was appointed to replace Sir Fred.

Dassault's civil aerospace chief Olivier Villa has disclosed, Citigroup had cancelled orders for three Falcon 7X jets, after public concerns started raising over the fact that Citigroup was about to take delivery of one of the $45m jets despite having received $45bn in governmental bail-out funding . 

However, Citigroup continues to spend large amount of money on luxury, such as $10m the bank is going to spend on redesigning the executive suite at its Park Avenue headquarters in New York. The institution defended the project, saying it would actually save $20m over the life of the plan as once company leading executives move from two floors to "smaller, simpler offices" on one floor, the second floor will be available for leasing.