GE looks into spare plane fiasco

General Electric has tried to get to the bottom of why former CEO Jeff Immelt was escorted around the world by a spar...

Posted: Dec 13, 2017 4:39 AM
Updated: Dec 13, 2017 4:39 AM

General Electric has tried to get to the bottom of why former CEO Jeff Immelt was escorted around the world by a spare jet.

GE recently conducted an internal review into who approved the extra plane, a person familiar with the matter told CNNMoney.

The findings were shared with board members at a meeting last week, the source said. GE declined to comment on the review or its findings. News of the probe was first reported by The Wall Street Journal.

GE's use of the spare jet has angered shareholders and analysts, especially because the conglomerate is grappling with a nightmare cash crunch caused in part by Immelt's bad decisions.

The maker of jet engines and light bulbs has been forced to slash its dividend for just the second time since the Great Depression. Last week, GE announced it would cut 12,000 jobs in its beleaguered power division.

A GE spokeswoman said the company stopped deploying a spare jet for Immelt in 2014 and that its use was limited to trips deemed critical for business and overseas flights with security risks. It's not clear when GE began using the spare jet. Immelt became CEO in 2001.

Related: How decades of bad decisions broke GE

Immelt recently wrote a letter to GE's lead director explaining that he wasn't aware of the spare plane. "This practice was brought to my attention and stopped three years ago," he wrote. A spokesman for Immelt confirmed the authenticity of the letter, which was posted online by The New York Times.

Immelt wrote that after he became CEO, he directed GE to sell Boeing 737 jets that were expensive to operate and replace them with more efficient aircraft. Those less expensive jets were the ones that Immelt traveled on around the world.

Speaking at an Axios event last month, Immelt acknowledged that using a spare jet was a "terrible" idea and something that "I wish we hadn't done."

Immelt stepped down earlier this year from GE, which was the worst-performing stock in the Dow during his 16-year reign. GE has lost 43% of its value this year alone.

John Inch, a Deutsche Bank analyst who follows the company, called the spare jet an "absolutely reckless destruction of shareholder value."

"It's just unnecessary on every level and speaks to the lack of judgment," Inch said in a recent interview.

GE's new CEO, John Flannery, has cut back on perks as part of his plan to slash $2 billion in costs. GE recently announced plans to shut down its corporate jet fleet and eliminate company cars for senior executives.

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 312521

Reported Deaths: 5498
CountyCasesDeaths
Marion42641849
Lake27152455
Allen18010298
Elkhart17177221
St. Joseph16799229
Hamilton13011167
Vanderburgh9751120
Tippecanoe858727
Porter827986
Johnson6389165
Hendricks6098157
Vigo608384
Monroe536750
Clark515077
Madison5060122
Delaware4905103
LaPorte465595
Kosciusko462339
Howard344277
Warrick325672
Bartholomew316863
Floyd316277
Wayne307770
Cass299931
Marshall299144
Grant272550
Noble255046
Hancock253852
Henry247537
Boone244554
Dubois237931
Dearborn219030
Jackson215534
Morgan210843
Knox187819
Gibson186925
Shelby182155
Clinton180321
DeKalb177831
Lawrence177648
Adams168222
Miami162614
Wabash162521
Daviess156443
Fayette149234
Steuben147113
Jasper144412
Harrison142924
LaGrange142630
Montgomery142127
Whitley137114
Ripley132115
Huntington127410
Decatur126143
Putnam124627
Randolph124519
Wells124429
White123222
Clay122523
Posey122116
Jefferson118816
Scott109020
Greene102653
Jay99013
Sullivan96416
Starke92021
Jennings85314
Fulton84518
Spencer8378
Perry82521
Fountain7798
Washington7527
Franklin69927
Carroll68613
Orange67328
Vermillion6243
Owen6087
Tipton57627
Parke5706
Newton56312
Rush5438
Blackford53412
Pike50919
Pulaski39515
Martin3585
Brown3424
Benton3402
Crawford2941
Union2702
Switzerland2575
Warren2382
Ohio2317
Unassigned0266

Ohio Coronavirus Cases

Data is updated nightly.

Cases: 382743

Reported Deaths: 6274
CountyCasesDeaths
Franklin51161671
Cuyahoga37222743
Hamilton30493372
Montgomery20518236
Butler15199148
Lucas14566417
Summit13933327
Stark9193206
Warren841976
Mahoning7530300
Lake710067
Lorain6690106
Clermont593651
Delaware572537
Licking564577
Trumbull5584147
Fairfield554464
Greene538066
Clark5218101
Allen494989
Marion476759
Medina471657
Wood4598107
Miami437568
Pickaway404048
Portage358972
Columbiana357698
Tuscarawas342667
Richland328539
Wayne327394
Mercer296047
Muskingum252510
Hancock245940
Ross244559
Auglaize236435
Darke232560
Erie230268
Putnam229449
Ashtabula228354
Geauga211851
Scioto200616
Union19668
Shelby194017
Lawrence193039
Athens19134
Seneca182919
Belmont170229
Madison163119
Sandusky157729
Preble156521
Huron155519
Defiance144823
Holmes140439
Logan133517
Knox131718
Fulton128726
Jefferson128613
Crawford126817
Washington125227
Ottawa124530
Clinton109115
Williams10799
Ashland107825
Highland103718
Brown10135
Henry101323
Hardin99719
Champaign9825
Van Wert97318
Jackson96212
Fayette92717
Morrow9202
Guernsey89314
Coshocton85215
Perry82912
Adams80313
Pike7661
Gallia76513
Wyandot73217
Paulding66511
Hocking64516
Noble62224
Carroll48810
Meigs39612
Monroe32321
Morgan2685
Vinton2246
Harrison2193
Unassigned00
Fort Wayne
Overcast
43° wxIcon
Hi: 45° Lo: 28°
Feels Like: 43°
Angola
Overcast
41° wxIcon
Hi: 43° Lo: 28°
Feels Like: 35°
Huntington
Overcast
42° wxIcon
Hi: 45° Lo: 27°
Feels Like: 37°
Decatur
Overcast
41° wxIcon
Hi: 46° Lo: 29°
Feels Like: 41°
Van Wert
Overcast
41° wxIcon
Hi: 47° Lo: 29°
Feels Like: 41°
Mostly Cloudy Black Friday
WFFT Radar
WFFT Temperatures
WFFT National

Community Events