In these lean economic climes it seems like everybody is tightening their purse strings. The Financial Times reported today that senior managing directors at Merrill Lynch are curtailing their use of business jets. In a cost cutting measure, each flight must now be approved from the highest level of the investment giant. Like other Wall Street firms, Merrill Lynch uses business jets as a way to efficiently travel to and from clients, without any of the delays of commercial airline travel. While the practice does come at a cost, it is believed that the firm more than makes up for it in being able to effectively manage the time of its employees and clients.

With the investment services sector rocked by the collapse of Bear Sterns and looming troubles at Freddie Mac and Fannie Mae, the move to scale back private flights may be an attempt by Merrill Lynch to appear less wasteful during an uncertain financial period. The firm reported a loss of $4.6 billion in the second quarter.

The news that Merrill Lynch is looking to limit its business jet flights won’t come as good news to manufacturers. In the last few weeks there have been other signs that the domestic business aviation sector is weakening. Tightening credit markets means that fewer buyers will be able to finance the purchase of a new jet. Meanwhile, increasing fuel prices are making the cost of operating a jet higher than ever.

While the U.S. economy continues to lag, more businesses and individuals working with stretched budgets may begin to look closer at what they are spending on private jet travel. Meanwhile, for the foreseeable future, manufacturers will be relying on the continued growth in demand from customers in Asia, the Middle East, and Russia to keep their order books full.