New executive jet based in Calgary, not Saskatoon
SASKATOON The world’s largest fertilizer company bought a threeyear-old business jet to serve its Calgary headquarters before listing its older and smaller Saskatoon-based jet for sale.
Public records show Nutrien Ltd. registered the jet — a Gulfstream GV-SP, known as a G550 — on Sept. 14, two months before Postmedia reported its plan to sell the older aircraft.
The purchase comes amid growing concern at the highest levels of the provincial government about the company running most of its operations out of Calgary.
Nutrien spokesman Will Tigley said it is a coincidence.
“The main reason that we purchased this and made this business decision was functionality. This new jet, it provides a greater ability to fly internationally for us (because of its longer range). It reflects our business needs,” Tigley said.
“When we purchased it, I don’t think we saw this as, ‘Optically, this is how this is going to look.’
“We had a business need identified during our merger; and we went and procured the assets that helped us meet this business need.”
According to its manufacturer, Gulfstream Aerospace Corp., the twin-engined G550 can carry up to 19 people — it can also be configured to sleep up to eight people — and cover around 12,500 kilometres without stopping to refuel.
By comparison, the 12-year-old Dassault Falcon 900DC currently listed for sale through a Lincoln, Neb.-based dealer for an undisclosed price can transport up to 12 people and fly a maximum of 8,880 kilometres without refuelling.
Tigley said the Gulfstream is based in Calgary because that’s where it’s needed for the company’s global business.
He declined to say which Nutrien employees use the aircraft, or how much the company paid for it.
Bloomberg reported in October that a new Gulfstream G550 costs US$61.5 million. Dassault Falcons similar to the one Nutrien is selling are thought to trade for around US$12 million on the secondary market.
The company came under scrutiny last month after Postmedia reported that all but one of its senior executives, including CEO Chuck Magro, live outside the province, and Calgary appears to be the company’s primary base of operations.
Nutrien at the time denied that its decision to sell the Dassault Falcon was related to where its senior executives live.
The company said the decision was a “business decision” and not a “leadership decision.”
Top corporate executives are understood to spend many days each year on the road.
Nutrien was formed when Potash Corp. of Saskatchewan Inc. joined forces with Agrium Inc. in a deal worth US$26 billion.
While it is a publicly-traded company, the provincial government believes it is subject to a unique piece of legislation passed 29 years ago that requires Potashcorp and its successors to maintain “head office functions” in Saskatchewan.
The company has refused to confirm whether it believes the law applies, saying only that that will be a “point of discussion” in an upcoming meeting between its CEO and board chair and government representatives, including Premier Scott Moe.
Nutrien and the province have refused to reveal when and where the meeting will take place, except to say “this week.”
Magro and board chair Derek Pannell are expected to be in Saskatoon later this week for a scheduled meeting of the board of directors.