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CHARLOTTE, N.C. (Feb. 4) - Bank of America Corp. said Wednesday it is selling nearly half of its corporate aircraft as the bank looks to scale back costs.

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The Charlotte-based bank joins Citigroup Inc. and other companies in cutting back private jet travel.

Many financial firms are giving up the perk as scrutiny mounts over lavish spending after the companies received billions of dollars in rescue funds.

Since October, Bank of America has received $45 billion in government assistance, including a $20 billion injection last month to help with its troubled Merrill Lynch & Co. acquisition.

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"As part of an ongoing cost reduction effort we have been scaling back on our use of corporate aircraft including selling three aircraft we own and the Merrill Lynch helicopter," Bank of America spokesman Scott Silvestri said. He declined to say how many planes the bank still owns.

Federal Aviation Administration records from last year show Bank of America is the owner of nine planes, including four Gulfstreams. The company acquired brokerage Merrill Lynch & Co. in January.

Chief Executive Ken Lewis' corporate jet use in 2007 cost $127,643, according to a March 2008 filing with the Securities and Exchange Commission. Silvestri declined to say whether the bank requires Lewis to use company jets for business and/or personal use.

On average, a cross-country trip in a midsized jet costs about $20,000 for fuel. Maintenance, storage and pilot fees put the cost far higher.

Corporate jets, in many cases, serve a very valuable purpose, said Bert Ely, a longtime banking analyst in Alexandria, Va.

"They are offices in the sky," Ely said. "They all say it's for security purposes, and while true, corporate jets also represent a significant cost savings for executives. Time is money."

Even so, the news comes as several financial firms, some under pressure from President Barack Obama and politicians, have decided to reduce their fleets.

Last month, Citigroup reversed course in taking delivery of a jet it had planned to purchase before the credit crisis unfolded. The New York-based bank was also said to be cutting the number of corporate jets in its existing fleet from five to two.

San Francisco-based Wells Fargo & Co. has also been reported to be downsizing the jet fleet it acquired from Charlotte's Wachovia Corp. Wells Fargo completed its purchase of Wachovia in December.

Shares of Bank of America fell 60 cents, or 11.3 percent, to end at $4.70 -- dropping to their lowest level in 19 years and trading as low as $4.62 earlier in the session.

Copyright 2009 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.

2009-02-04 17:26:01

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Balyssaearle 10:19:07 PM Feb 05 2009

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it should be called bank of china.!!!!!!!!!!! the're are a bunch of crooks.!!!!!

PANUCO 1 06:16:38 PM Feb 05 2009

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KCOBB YOU NEED SOME SERIOUS THERAPY.. I AM SURE THIS IS NOT THE FIRST TIME YOU HAVE HEARD THIS.

PANUCO 1 06:13:20 PM Feb 05 2009

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Type your oKCobb 08:09:35 AM Feb 05 2009 Report This! If corporations are being expected to sell their jets because it's "cheaper" to fly commercial. Then why doesn't Obama sell Air Force One. The country is in a recession and we have a debt bigger than any corporation. What's good for the goose, should be good for the ganger.wn comment here WELL, KCOBB, THAT WAS ABOUT THE DUMBEST THING I HAVE EVER HEARD..DO YOU REALLY THINK THE PRESIDENT OF THE UNITED STATES SHOULD FLY COMMERCIAL... AND IF YOU REALLY DO, YOU HAVE SOME SERIOUS ISSUES AND TO SEEK LONG-TERM THERAPY

vstrongirl21 02:32:00 PM Feb 05 2009

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how about all those in washington cut their big pay checks and put a cap on their salaries. stops all their perks they get. we will have more money and not have to pay big tax money to cover them. our trouble started with washington with barney telling the banks to give out loans to those who could not afford them. now once again we have to pay out and lose what we saved for. fed up with washington. next time . im not voting any who are in washington.

JIMKELLY196 10:26:19 AM Feb 05 2009

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Bank of America-Unload Ken Lewis along with the jets.

MHulgin 09:58:15 AM Feb 05 2009

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Obama has these Fatcats reeling, and I'm lovin it. It's about time someone started to stand on these free spending Morons. Taking lavish trips while they're Company is falling on it's face, are U kidding me ? Turn the screws on these spenders. And when U think you've tightened them down, turn it a couple of more times for Insurance...

Dhcsmc321 09:25:21 AM Feb 05 2009

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Why would anyone do business with BOA?

Dhcsmc321 09:22:09 AM Feb 05 2009

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Bank of America is not a good corporate citizen and a loser. I would never do business with BOA.

RHUMBERSONJR 08:51:57 AM Feb 05 2009

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Replace Ken Lewis with Rick Wagoner.

Jdl3inec 08:43:33 AM Feb 05 2009

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And it would only be better if Nancy Pelosi would ditch her 200 passenger jet that she commutes back and forth to CA. Why does this Speaker need such a big, expensive plane?

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