More than $26 Billion in Orders for GE and Its Joint Ventures at 2013 Paris Air Show

GE Aviation and its joint venture companies announced more than $26.5 billion (USD) in orders at this week’s Paris Air Show.

Orders include:

· AirAsia ordered additional CFM LEAP-1A engines and CFM56-5B engines to power the 100 Airbus A320 aircraft it ordered in a deal announced last December and signed a comprehensive long-term service agreement to support its fleet. The order, which comprises LEAP-1A engines to power 64 A32neos and CFM56-5B engines to power 36 A320ceo aircraft along with 5 CFM-56B spare engines and 9 LEAP-1A spare engines, is valued at $8.6 billion U.S. at list price, including a 20-year RPFH (Rate per Flight Hour) agreement.

· United Airlines selected GEnx-1B engines to power its order for 20 firm Boeing 787-10 Dreamliners and the remaining 15 firm 787 Dreamliners from a previous order. The engine order for the 35 aircraft plus five firmed aircraft options from last year are valued at more than $1.8 billion list price.

· GE Capital Aviation Services (GECAS) announced a commitment to order 10 Boeing 787-10 Dreamliners powered with GEnx-1B engines. The engines are valued at close to $500 million (USD) list price.

· Xiamen Airlines signed a Letter of Intent (LOI) to select GEnx-1B engines for its six Boeing 787 Dreamliners. The LOI also includes a 10-year OnPointSM solution agreement for GE to provide maintenance, repair and overhaul of the airline’s GEnx fleet. List price of the engine order and the OnPoint solution agreement are valued at more than $560 million over the life of the engines.

· TUI Travel PLC celebrated a proposed commitment to Boeing to purchase 60 Boeing 737 MAX 8 and MAX 9 aircraft with 120 LEAP-1B installed engines. The order is valued at $1.56 billion list price. TUI Travel also has options on 60 additional LEAP-powered 737 aircraft. LEAP engines are a product of CFM International, a 50/50 joint venture between GE and Snecma (Safran group).

· GE Aviation announced plans to build a new 125,000-square-foot facility near Asheville, North Carolina to produce engine components made of advanced ceramic matrix composite materials. The facility will open as early as 2014 and is expected to grow to more than 340 employees within five years.

· CF34 engines, which had garnered 350 engine orders going into the show including recent orders from United Airlines for 30 EMBRAER E175s and SkyWest Airlines for 40 E175s, increased its engine order backlog with Conviasa’s seven E190s and Japan Airlines’ four E190s.

· Qatar Airways announced an order for nine GE90-115B-powered Boeing 777-300ERs. This includes a firm order for two aircraft and a commitment for an additional seven aircraft. List price of the engine order and commitment is valued at more than $600 million.

· BOC Aviation the selection of CFM engines to power its new Airbus A320 family aircraft. The order, which is comprised of 10 LEAP-1A-powered Airbus A320neo and 10 CFM56-5B-powered A320ceo aircraft, is valued at $460 million list price.

· LATAM Airlines Group signed a memorandum of understanding with CFM International to purchase CFM56-5B engines to power 25 firm A321ceo and five firm A320ceo aircraft, in additional to options for 20 additional Airbus A321neo (current engine option) aircraft. Once finalized, the agreement will be valued at approximately $1.1 billion at list price, including spare engines and a long-term maintenance agreement.

· LATAM Airlines Group and GE Aviation signed two memorandums of understanding for a 10-year OnPoint solution agreement for the maintenance, repair and overhaul of 120 CF6-80C2 engines valued at more than $500 million and a 12-year OnPointSM solution agreement for the maintenance, repair and overhaul of its GE90-110 engines valued at more than $210 million (USD) over the life of the contract.

· Air Canada signed two OnPoint solution agreements: a five-year OnPoint solution agreement for CF34-8E engines and a 15-year OnPoint solution agreement for GEnx-1B engines.

· JetBlue Airways signed a 10-year OnPoint solution agreement with GE Aviation for the maintenance, repair and overhaul of its CF34-10E engine fleet that powers its 58 EMBRAER E190 aircraft.

· Japan Airlines signed an OnPoint solution agreement for material solutions for its GE90 engine fleet. Under this agreement, JAL will perform the overhaul and certain repairs at its engine maintenance center located in Narita, Japan, and GE will provide material and repair management services. The deal is valued at close to $500 million (USD).

· Azul added 43 CF34-10E engines to its existing 15-year OnPoint solution agreement with GE Aviation covering the maintenance, repair and overhaul of 190 CF34 engines powering its EMBRAER E190 aircraft.

· HNA Aviation Holding Company Limited signed a 15-year Rate per Flight Hour (RPFH) agreement with CFM International to support its fleet of 84 CFM56-5B engines.

· CIT Group today announced an order for 30 Boeing 737 MAX 8 airplanes powered by CFM International’s advanced LEAP-1B engine. The engine order is valued at $760 million U.S. at list price.

· Etihad Airways, the national carrier of the United Arab Emirates, entered into an agreement with Taleris, a joint venture company between GE Aviation and Accenture, to launch groundbreaking new technology to help predict potential maintenance faults and recommend preventive action. Taleris’ web-based prognostics service, a part of its Intelligent Operations offering, is a first for the commercial airline industry and will be used to monitor Etihad Airways’ fleet of Airbus and Boeing aircraft. The prognostics technology will leverage the Industrial Internet to increase the airline’s overall operational efficiency.

· India’s national carrier, Air India, signed an OnPoint overhaul engine services agreement for the time and material related to the maintenance, repair and overhaul of its 96 CFM56-5B engines that power its Airbus A320 aircraft fleet.

· International Lease Finance Corporation (ILFC) expanded its order for CFM International’s LEAP-1A engines to power an additional 20 Airbus A320neo family aircraft, bringing the total of its LEAP-powered A320neo Family aircraft to 60. This newest engine order is valued at $510 million at list price.

· Korean Air committed to purchasing five GEnx-2B-powered Boeing 747-8 Intercontinental aircraft and six GE90-115B-powered Boeing 777-300ERs. When the engine order is finalized, the list price of the engines will be valued at more than $800 million (USD).

· Cathay Pacific Airways committed to a 15-year OnPointSM solution agreement for the maintenance, repair and overhaul of 12 GEnx-2B engines, which were announced earlier this year. The OnPoint solution agreement is valued at $380 million (USD) over the life of the agreement.

· Qatar Airways signed a 10-year maintenance cost per hour agreement for the continued maintenance, repair and overhaul of its Airbus A330 aircraft powered by CF6-80E engines.

· SAS today announced that it has signed a Letter of Intent with CFM International for the long-term support of its advanced LEAP-1A engines. In 2011, the airline selected the engine to power 30 firm Airbus A320neo aircraft and hold options on 11 additional airplanes. Under the terms of the 12-year Rate Per Flight Hour Agreement (RPFH), valued at $180 million U.S., CFM will guarantee maintenance costs on a dollar per engine flight hour basis.

GE Aviation also made the following announcements at the 2013 Paris Air Show:

· GE’s newest commercial turboshaft engine, the CT7-2E1, received its U.S. Federal Aviation Administration Type Certification, paving the way for its role as powerplant for the twin-engine AgustaWestland AW189 helicopter. The CT7-2E1 engine is the latest civil-certified addition to the CT7/T700 family of engines with a full authority digital electronic control (FADEC) system and state-of-the-art hot section for power and reliability.

· GE Aviation launched the TRUEngineTM program on its CF34 engines with Azul, Flybe, GoJet, Jetscape, LOT and GE Capital Aviation Services (GECAS). The CF34 TRUEngine launch expands the TRUEngine designation from CFM56*, CF6 and GEnx engines

· GE Aviation’s Electrical Power Integrated Systems Center (EPISCENTER) is receiving the test equipment this week that will enable the testing of the complete electrical power system in an actual copper-bird aircraft. The Dayton, Ohio center is nearing completion for the opening this fall of the 138,000-square-foot facility, which includes a four-story 50,000-square-foot office building connected to an 88,000-square-foot world-class electrical power laboratory.

· GE Aviation’s aerostructures business has begun the development of a 9,000-square-meter composites production facility at its Hamble, U.K. site as part of a five-year, $50 million-plus investment at the site to support the company’s manufacture of wing components for the Airbus A350 XWB jetliner family. The A350 XWB package is the largest production contract awarded in GE Aviation Hamble’s 75-year history, comprising more than 3,000 components that include structural composite panels and complex machined assemblies.

· StandardAero and GE signed two license agreements to become an independent TRUEngine authorized maintenance, repair and overhaul (MRO) provider for CF34 and CFM56* engines. By signing this agreement, StandardAero will be the first independent TRUEngine authorized MRO provider for CF34 engines and the second for CFM56 engines. As an authorized TRUEngine MRO provider, CFM56 or CF34 engines overhauled by Standard Aero are eligible for TRUEngine status.

· CIT Aerospace has been awarded TRUEngine designation for its CF6 engine fleet, which powers its 13 Airbus CF6-80E-powered A330-200 aircraft.

· GE Capital Aviation Services reached agreement to participate in CFM International’s unique Portable Maintenance for Lessors (PML) program. The product is the first of its kind in the industry and enables lessors and operators to optimize engine maintenance costs throughout the life of an aircraft.

· Evergreen Aviation Technologies awarded GE Aviation a support contract to supply CF6-80C2 engine components. Under the agreement, GE Aviation’s materials business will be a preferred supplier to provide CF6-80C2 Used Serviceable engine parts for EGAT’s maintenance operations.

Source/ Author: GE Aviation