Boeing CEO Kelly Ortberg has grounded much of the company's private jet fleet, directing executives to fly economy instead, as part of aggressive cost-cutting efforts. Recent reports indicate a drastic decrease in private flights, dropping from 146 in August to just 29 in October. This move is a strategic response to ongoing financial challenges, particularly in light of Boeing's costly issues over the past year, including production delays and a significant strike by unionized workers.
Data collected by flight tracker Flightradar24 highlighted Boeing's extensive use of private flights, revealing they conducted around 1,800 flights in 2023, leading to nearly $14 million in fuel costs and significant CO2 emissions. Following the CEO's directives, however, the company has significantly cut down on these flights to manage expenses better, marking a shift in how executives will travel amid the company's financial crisis.
Boeing faced a series of setbacks and controversies over the past year, including serious mechanical problems with their CST-100 Starliner spaceship and a notable incident where a door plug fell off during an Alaska Airlines flight. These issues, alongside an executive exodus, led to increased pressure on the company, exacerbated by a recent union strike that resulted in losses of nearly $50 million daily.
In light of persistent struggles, Boeing has acknowledged the financial strain arising from air travel expenses, revealing that between 2021 and 2023, air travel for a quartet of executives alone cost the company approximately $1.9 million. This stark figure emphasizes the need for drastic measures like curbing private jet usage as a means to streamline costs during turbulent times.
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