Jan. 27 (Bloomberg) -- Citigroup Inc., the bank that received $45 billion in U.S. government funds, said it plans to buy new aircraft and sell older ones.

The transactions may lower operating costs because the new jet would be more fuel efficient, the bank said in a statement e- mailed to Bloomberg News.

“We signed a contract in 2005 for replacement aircraft, which was part of our plan to reduce the number of aircraft Citi owns and use more fuel-efficient aircraft,” the e-mail said. “Refusing delivery now would result in millions of dollars in penalties.”

The New York-based company said funds from the Troubled Asset Relief Program, or TARP, wouldn’t be used to buy aircraft. It didn’t provide details of the purchase plan in the e-mail.

The company plans to take delivery of a $50 million Dassault Falcon 7X corporate jet, the New York Post reported, citing a person familiar with the transaction. The company is seeking to sell two older Dassault 900EXs, worth about $27 million each, the newspaper said.

To contact the reporter on this story: Takahiko Hyuga in Tokyo at thyuga@bloomberg.net

Last Updated: January 26, 2009 22:51 EST