Boeing’s new CEO clips corporate jet trips in show of restraint

For members of the Boeing Co.’s executive council, catching a ride on the company’s corporate jets has long been a cherished perk of the job. 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 US planemaker’s sprawling operation. Boeing requires its CEO to avoid commercial flights for security reasons, even when on a personal trip. 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. 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 $24b to fund its comeback. “To some degree, I think he was trying to get people’s attention,” said George Ferguson, analyst with Bloomberg Intelligence. “He’s trying to show some of the shared sacrifice.” The savings wouldn’t move the needle for a company with a $58b debt load, said aviation consultant Brian Foley, who estimates Boeing spends about $15m 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. <br/>