GE to Shut Down Corporate Jet Fleet in Cost-Cutting Move -- Update
September 20 2017 - 12:34PM
Dow Jones News
By Thomas Gryta and Mark Maremont
General Electric Co. executives will have to find new ways to
fly around the globe.
The conglomerate is grounding its corporate fleet of jets as new
CEO John Flannery continues to look for ways to slash costs at the
industrial giant.
Mr. Flannery is cutting spending in GE corporate operations,
including unwinding the internal airline for corporate executives,
effective Wednesday, according to a person familiar with the
situation. GE will still operate some helicopters and other
aircraft overseas, while using charter services as needed.
GE owns several business jets, federal records show, including
at least two Bombardier Challenger aircraft. Its pilots for decades
have shuttled executives to business meetings and operations around
the globe, racking up hundreds of hours a year.
The company has required the CEO to use corporate aircraft for
all travel, including personal travel, for safety and security
purposes. But with profits under pressure and sales pinched by
weakness in parts of the company, Mr. Flannery is looking for ways
to save.
"As we have said, we are executing on a plan to take out $2
billion in cost by the end of 2018," a GE spokeswoman said. "As
part of that effort, starting today, we are reducing the Corporate
Air Transport services and will use charter companies as
needed."
Write to Thomas Gryta at thomas.gryta@wsj.com and Mark Maremont
at mark.maremont@wsj.com
(END) Dow Jones Newswires
September 20, 2017 12:19 ET (16:19 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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