Economic Slump Moves Companies Away from Corporate Jet Use

by jhebert 14. April 2009 05:07

It is called a matter of money and image.  Private travel has decreased almost 25 percent since the start of 2009 according to National Business Travel.  Many companies have begun to distance themselves from corporate travel.  Some companies making an effort to cut back include the U.S. Steel Corp., Alcoa Inc and PNC Financial Services Group Inc.  Last year the U.S. Steel Corp. actually wordered two new aircraft but cancelled the order early this year.

 Alcoa, which has a hangar for its aircraft at Allegheny Airport has asked employees to cut down travel to reduce costs.  Instead of their annual meeting in florida they have done a series of online meetings to indicate that the jets are used for security purposes.  However, they do not believe that those who continue to fly privately deserve the bad reputation.  Alcoa believes that flying private can be a big time saver for someone that makes 5,000 an hour because their time would be more valuably spent not waiting in lines for commercial air which is delayed 30 percent of the time.

  PNC also chooses to hold onto their aircraft but have a maximum allowance of flight time for employees currently.

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