Boeing disclosed that it spent an additional $546,000 on personal air travel for four top executives, including CEO Dave Calhoun, bringing the total cost to $1.9 million since 2021. This disclosure comes as the company faces scrutiny for safety incidents and an executive shakeup. The personal air travel is part of the executives’ perks, which also include ground transportation, lodging, and meals during personal trips. The reported costs only include incremental expenses such as fuel, crew travel, on-board meals, landing fees, and parking.
Calhoun alone accumulated $979,000 in personal air travel costs over three years. The company spent $734,000 in 2022 and $306,000 in 2021 on the executives’ personal air travel, with an additional $872,000 in 2023. Boeing has been financially struggling for the past five years due to the grounding of the 737 Max planes and the impact of the pandemic on air travel. The company reported adjusted losses of over $31 billion since the grounding and expects losses to continue.
Boeing’s policy requires its CEO to fly on company-owned or leased aircraft for security reasons, even during personal trips, with other top executives allowed to do so as well. An internal review reclassified some flights as personal travel, resulting in the increased costs reported in the recent filing. This review followed a Wall Street Journal article detailing the perks given to Boeing executives, including the extensive use of aircraft for travel from distant homes. Boeing did not provide additional comments on the executives’ air travel costs.
In a recent filing, it was disclosed that Calhoun’s total compensation for 2023 was $32.8 million, a 45% increase from the previous year. Calhoun declined his annual incentive bonus after an incident involving a Boeing 737 Max plane, which led to federal investigations, temporary grounding, and questions about Boeing’s safety standards. Calhoun announced his departure from the company by the end of the year, along with Stan Deal’s retirement as the CEO of Boeing Commercial Airplanes.
The increased spending on personal air travel for Boeing executives has raised further concerns about the company’s financial management and accountability. With ongoing financial struggles, safety incidents, and executive changes, Boeing continues to face challenges in restoring its reputation and profitability. Moving forward, the company will need to address these issues effectively to regain trust from investors, customers, and regulators.
