NEW YORK: General Electric plans to sell its corporate jets in a cost-cutting move amid sluggish activity in key industrial divisions, a spokesperson said on Wednesday (Sep 20).
|Logo of General Electric. (AFP/YASUYOSHI CHIBA)|
“As we have said, we are executing on a plan to take out US$2 billion in cost by the end of 2018,” the GE spokesperson told AFP.
“As part of that effort, starting today, we are reducing the Corporate Air Transport services and will use charter companies as needed.”
GE owns several jets and helicopters that have been used by executives for global travel, both for efficiency and security. The company plans to sell the fleet, the spokesperson said.
GE has been under pressure on Wall Street as weak activity in its oil and gas and power divisions has pressured its earnings outlook.
Shares have fallen more than 23 per cent since January, even as the broader stock market has repeatedly hit new records.
The conglomerate in June announced that executive John Flannery would take over for longtime chief executive Jeff Immelt, who retired on Aug 1.
Flannery is expected to unveil new austerity measures at his first major investor day as CEO on Nov 13.