Tesco has sold or returned four of its five corporate jets amidst cost cutting measures, the Financial Times reports today.
A Gulfstream 550 was bought last September just days after the retailing giant overstated its first-half profit for 2014 by £250 million, only to be sold in November as the then chief executive Philip Clarke promised to end the use of corporate jets.
According to the Financial Times’ sources, the final aircraft to be handed back by Tesco is a Hawker 800, with the process set to be finalised when its lease expires at the end of this month.
Tesco is also expected to move out of an office in London’s Mayfair area that was used by Clark and former chairman Sir Richard Broadbent, as well as a number of non-executive directors.
The end of the corporate fleet may bring some good news to recently appointed chief executive David Lewis when Tesco releases its full-year results on the 22 April, as it is forecast to make property write downs of between £3 billion and £4 billion.
Analysts at Tesco’s joint broker, Deutsche bank have predicted that the company could have to pay £250m a year to reduce its £3.4 billion pensions deficit.
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