Economy

General Electric will stop using private jets in latest cost-cutting measure

General Electric will stop using private jets in latest cost-cutting measure”

XAutoplay: On | OffThe GE chief executive's cost-cutting effort, reported by The Wall Street Journal Wednesday, comes as investors fret about cash flow and margins at the industrial giant. Its pilots for decades have shuttled executives to business meetings and operations around the globe, racking up hundreds of hours a year. GE will still use helicopters and charter flights when necessary, as well as other forms of corporate travel overseas.

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the USA print edition of The Wall Street Journal (September 21, 2017). Executives had been required to use the corporate fleet, even for personal travel, as a means of security and safety.

This move is part of a plan to cut $2 billion in costs by the end of 2018 to combat sales that have come under pressure in recent months.

GE spent $258,000 on personal jet travel for former CEO Jeff Immelt in 2016, taking into account just "incremental" costs such as fuel and crew expenses. The company plans to sell the fleet, the spokesperson said.

GE will continue the business element of corporate jets, meaning it will still make jet engines for commercial planes.

The company's cost-saving initiative includes stopping the use of its business jets, which included at least two Bombardier Challenger aircraft. GE's stock is down 23 percent this year, according to FactSet.



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