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The General Electric executives are loosing grip on a much sought-after advantage: travelling with corporate jets. Rather than fly around the globe with GE's luxury fleets, the high rollers of the ailing business will be compelled to charters. GE said in a declaration that the move was powered by the icon company's effort to reduce approximately $2 billion in cost by the end of next year.
The Wall Street Journal had previously covered reports of the move. This underlines the tremendous pressures on GE to address the bad performances of the telecomglomerate. During the 16-year term of Jeff Immelt, who resigned as Chief Executive Officer on August 1, GE was the Dow's poorest performing company; some of GE's biggest stockholders express disappointment.
Speaking at a last weeks meeting asked about GE's bad track record, Trian Partners said Chief Investment Officer Ed Garden: On his first flannery days, Flannery explained in a reminder to staff that Wall Street developers expected him to lower the cost and blame individuals for the results. It is not clear how much GE will be saving by liquidating its corporate jets programme and reselling the aircraft.
GE, which has had its own flying division for many years, refused to indicate how many jets it owned. FAA is listing at least a dozen GE owned planes, among them several Gulfstream and Bombardier choppers and jets. According to the March submissions, Immelt's CEO deployed more than 250,000 US dollars in GE airplanes last year.
In the submissions it says: "For safety reasons" GE demands that its chief executive officer use corporate jets for all private and corporate use. GE's Management Committee has revised its guidelines to allow the Chief Executive Officer to operate on charters and even commercially, a man in the know. On its way there, the firm once divested excellent asset classes such as NBC Universal and GE Capital.
There is one thing GE cannot get out of its way: the engine department, among them those previously used in corporate jets.