At Least 800 to Leave by Summer

Dave Calhoun, president and chief executive officer of GE Aircraft Engines, told employees that the company, worldwide, will be sending home some 800 salaried workers, from the aviation engine division.

The decline in demand for air travel has had airlines cutting flights, curtailing airliner orders, and ordering fewer replacements for the existing fleet. Six months ago, GE told its workers that as many as 1800 might have to go home, eventually.

The Associated Press reports that this sector of GE's employment has fallen by about one in every six workers, since the terror attacks.

Just when the picture couldn't have looked bleaker for the airline industry, Red China lost its ability to keep a lid on SARS. Calhoun mentioned that, in his webcast last week: "Our North American customers are struggling with bankruptcy and restructuring. European airlines are making 15 percent capacity reductions. An additional complication is that our Asian customers are being dramatically affected by SARS."

The company is enhancing retirement and severance packages, to encourage its 'most-valed assets' to leave voluntarily.

FMI: www.ge.com