-
Boeing’s CEO is cutting private jet use for executives to reduce costs.
-
The company directed executives to fly economy on commercial flights instead.
-
Boeing is searching for ways to save money after a rough year.
Boeing’s new CEO is cutting back on expensive private jet flights for the company’s top executives in a cost cutting move.
Boeing CEO Kelly Ortberg grounded much of the company’s fleet of private jets and is now directing executives to fly economy on scheduled commercial flights, Bloomberg reported.
Data from flight tracker Flightradar24, compiled by Bloomberg, shows that Boeing’s number of private flights dropped from 146 in August to 56 in September and just 29 in October.
Boeing’s corporate planes collectively flew about 4,500 hours across some 1,800 flights in 2023, according to data from the aviation-tracking website JetSpy. That amounts to about $14 million in fuel and about 22,500 tons in CO2 emissions.
Boeing disclosed in an April SEC filing that air travel for four executives alone has totaled $1.9 million since 2021. According to CNN, former Boeing CEO Dave Calhoun’s air travel cost $979,000 during that period.
Ortberg’s cost-cutting efforts are another attempt to get back on track after a difficult year for Boeing. Since January, Boeing has navigated persistent problems, including two astronauts left stranded at the International Space Station for months due to mechanical issues with its CST-100 Starliner spaceship.
The company also faced criticism after a door plug fell off during an Alaska Airlines flight, an exodus of corporate executives, production delays, and more.
In September, thousands of unionized employees walked out after contract negotiations failed. That cost Boeing an estimated $50 million a day, according to Bank of America.
The seven-week strike ended in early November when unionized Boeing employees approved a new contract proposal.
Boeing did not immediately return a request for comment from Business Insider.
Read the original article on Business Insider
