Google’s ‘misunderstanding’ saves its execs millions on private jet flights at taxpayers’ expense

A “misunderstanding” between Google and NASA resulted in deeply discounted fuel rates for the search giant’s private corporate jets, costing California taxpayers between $3.3 and $5.3 million.
According to a report by NASA Inspector General Paul Martin, Google’s three top executives – Larry Page, Sergey Brin, and Eric Schmidt – used a holdings company they established, called H211, to secure airplane fuel below market rates, without paying state and local taxes.
Martin stated that NASA should explore whether or not it could recoup the costs from H211.
“While we concluded that the fuel arrangement between Ames and H211 did not result in an economic loss … H211 nevertheless received a monetary benefit to which it was not entitled,” the report reads.“Accordingly, we recommend that NASA explore with the company possible options to remedy this situation.”
Martin also said that in addition to saving Google and H211 millions of dollars, the situation“engendered a sense of unfairness and a perception of favoritism toward H211 and its owners.”

Google’s executives have been renting hangar space at the Ames Research Center at Moffett Federal Airfield for $1.4 million a year since 2007. Although commercial aircraft isn’t usually permitted to use the airfield, Google struck a deal on the condition that it would allow NASA to use its aircraft to fly scientists out on research missions.
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