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RIM To Sell Corporate Jets To Reduce Expenses and Save $1 Billion

After two consecutive quarters of great losses, BlackBerry maker Research In Motion (RIM) revealed its plan to sell one or both of its jets in a bid to cut its expenses and eventually save $1 billion in a year. Despite recent buyout rumors, chief executive Thorstein Heins said they are still in the process of transforming the company into a “lean, mean hunting machine.” But it doesn’t make sense why it has to let go a huge percentage of its manpower and assets.

RIM currently owns two jets (9- and 14-seater) which are being used by executives and clients for business trips. Sources familiar with the issue said that the company is primarily planning to sell the smaller one (which may be sold for $6 to $7 million) but there is also a big possibility that the bigger jet would be sold. This action will basically cut operating costs as well as maintenance and RIM is so open about it.

“We’re looking at options with both our aircraft costs and finding ways to reduce our travel while still making sure we keep in close contact with our partners around the world,” a representative of RIM said.

While Heins is trying to candy-coat the company in the eyes of the people to protect its business, it is never a secret for everyone that RIM is on the brink of splitting itself in two and sell the other half to interested parties. Recent reports suggest that a certain US company is planning on buying the company’s security software division and all the patents that come with it. One thing RIM can be proud of is the high security of BlackBerry’s communications.

Moreover, a Chinese company is reportedly interested in buying the handset business of RIM. Previous reports suggested that only the manufacturing division has the possibility of being sold but seemingly, that’s not the case anymore.

The plan on selling corporate jets was laid out by Heins during shareholders’ meeting that took place in Waterloo, Ontario. The chief executive, however, still have high hopes for BlackBerry 10—apparently, it is RIM’s last straw to redeem itself from being dissolved.

Source: Guardian UK

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