General Electric’s executives will now be losing their perk of traveling in the company’s corporate jets. The company’s major players will now be forced to charter flights, and some of the executives will have to fly on regular commercial flights.
This big move is a result of the company’s two-year cost-cutting mission to eliminate $2 billion in expenses.
“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 told CNBC. “As part of that effort, starting today, we are reducing the corporate air transport services and will use charter companies as needed.” With this step it’s not yet clear how much money the company will be able to save. GE, which has a corporate flight division, refused to give any data on the number of jets it possesses.
The Federal Aviation administration enlists at least a dozen aircrafts that are registered under GE. It also includes jets made by Gulfstream and Bombardier.
GE has sought to remake itself in recent years by narrowing its focus to areas it can lead, such as health care, wind turbines, jet engines and trains. Along the way the company has sold off once-prized assets like NBC Universal and GE Capital. GE even announced plans in June to unload its iconic light bulb business.
GE has tried to revamp itself as of late by narrowing its focus to regions where it can lead like health care, wind turbines, jet engines and trains. The organization has sold off once-prized resources like NBC Universal and GE Capital. In an announcement made in June this year the company has decided to drop its light bulb business.
GE does not just own business planes; it additionally supplies engines and other parts utilized on some business planes. The organization makes jet engines for commercial planes, and its GE capital division has an expansive business of renting airplanes. However, it sold the unit that rents corporate jets in 2015.