NEW YORK, Nov. 29 (Xinhua) -- Boeing's executive fleet operated just 29 flights in October, down from 56 in September and 146 in August, when Kelly Ortberg joined Boeing as chief executive officer (CEO), reported Bloomberg News on Friday.

The number was an 85 percent decrease from a year earlier, said the report based on analysis of flight data compiled by Flightradar24.

"While Boeing is starting to ease its travel crackdown, the tactics provide a glimpse into the priorities and management ethos of the new CEO. Boeing slashed spending on everything from advertising to consultants and catering in September as financial pressure intensified from the strike, which lasted seven weeks," noted the report.

The 19 senior leaders have counted on five company-owned Bombardier Inc. Challenger 650 business jets and two customized 737 narrowbodies to help oversee the U.S. planemaker's sprawling operation. Boeing requires its CEO to avoid commercial flights for security reasons, even when on a personal trip, according to the report.

"Then in mid-September, new CEO Kelly Ortberg grounded much of the corporate fleet in an early cost-cutting move. Executives were instead told to fly economy on scheduled airline flights," said the report.

At the time, a strike had shut down Boeing's commercial manufacturing and the company was in dire need of cash. The flying restrictions, combined with work furloughs and layoffs, sent a message of frugality as Ortberg worked with bankers to raise 24 billion U.S. dollars to fund its comeback, it said.

The savings wouldn't move the needle for a company with a 58 billion dollars debt load, said aviation consultant Brian Foley, who estimates Boeing spends about 15 million dollars per year flying its executives around.

"But at a time when the company was cash-strapped and factory workers in open revolt about what they viewed as measly paychecks, the move sent a clear message from the new boss," the report added. Enditem

Related

Go to Forum >>0 Comment(s)