General Electric Company (NYSE:GE) announced that it will stop using corporate jets to transport executives to and from meetings.
One of the perks of being an executive at the company was the ability to fly corporate, but this practice will no longer be in place starting Wednesday. GE will still use helicopters and charter flights when necessary, as well as other forms of corporate travel overseas.
“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 said. “As part of that effort, starting today, we are reducing the Corporate Air Transport services and will use charter companies as needed.”
The company’s cost-saving initiative includes stopping the use of its business jets, which included at least two Bombardier Challenger aircraft. Using corporate jets to travel around the country and world for business purposes has become a more popular practice in recent decades.
Previously, GE required the CEO to use corporate aircraft for all travel, including personal trips, due to safety and security purposes. The decision to cut costs comes as the company’s sales have declined throughout several segments.
GE will continue the business element of corporate jets, meaning it will still make jet engines for commercial planes. The GE Capital division has a sizable business consisting of leasing aircrafts.
GE shares gained 0.2% Wednesday.
