Farnborough: GE Aviation and JV companies announce USD16bn in contracts
GE Aviation along with its joint venture companies, CFM International and the Engine Alliance, amassed (21-Jul-2010) engine and services orders valued at more than USD16 billion at the 2010 Farnborough Air Show, comprised of USD11 billion in engine orders and USD5 billion n long-term, high-margin service agreements. GE Aviation commented: “The level of activity at the show demonstrates that the aviation industry is beginning to emerge from the economic downturn.” Highlights include:
- Emirates: Ordered 30 GE90-115B-powered B777-300ER aircraft valued at USD2 billion list price. Emirates also signed a 12-year OnPointSM solution services agreement for the maintenance and overhaul of its GE90-115B engines worth more than USD1 billion over its life;
- Air China: Selected the CFM56-5B engine for its 20 firm A320 aircraft, valued at USD600 million at list price, including a long-term maintenance agreement with CFM;
- China Eastern Airlines: Selected the CFM56-5B engine to power 30 A320 aircraft, valued at approximately USD600 million list price. China Eastern also signed a long-term maintenance agreement with CFM;
- GE Capital Aviation Services: Ordered CFM56-7B engines to power 40 B737-700/-800/-900 aircraft and CFM56-5B engines to power its 60 A320 aircraft. The combined engine order is valued at USD1.4 billion at list price;
- Afriqiyah Airways: Signed a ten-year OnPointSM solution agreement for its CFM56-5B engine fleet, valued at more than USD50 million over the life of the contract.
- Emirates: Selected the Engine Alliance GP7200 engines to power its 32 additional A380 aircraft announced last month. The total value of the engine and Fleet Management Agreement is approximately USD4.8 billion over the life of the contract;
- TAAG (Angola Airlines): Signed a ten-year OnPointSM solution services agreement for its 10 GE90 engines, valued at more than USD50 million over the life of the agreement;
- Azul Linhas Aereas ordered five CF34-10E-powered E195 aircraft valued at more than USD40 million list price;
- TRIP Linhas Aereas: Exercised its option to purchase two E90 aircraft powered by CF34-10E engines. The engine order is valued at $17M list price.
- LAN Airlines: Chose CFM56-5B engine to power 70 new A319/A320/A321 aircraft. The order is valued at USD2 billion list price, including engines and a long-term maintenance agreement with CFM;
- Royal Jordanian: Agreed to purchase six GEnx-1B engines to power its three additional B787 aircraft;
- Flybe: Ordered 35 CF34-8E-powered E175 valued at more than USD360 million list price. The airline also signed a ten-year OnPointSM solution services agreement for the new CF34-8E engines valued at more than USD100 million over the life of the agreement;
- Air Lease Corporation: Ordered 60 CFM56-7B-powered B737 aircraft, valued at USD840 million list price;
- Air Arabia selected the CFM56-5B engine to power its 44 Airbus A320 family aircraft. This new engine selection is valued at more than $620 million list price.
- RBS Aviation Capital: Ordered 43 CFM56-7B-powered B737NG aircraft, valued at USD600 million list price;
- Norwegian Air Shuttle: Ordered 15 CFM56-7B-powered B737-800s, valued at USD210 million list price;
- AvolonL Ordered 12 CFM56-7B-powered B37-800 aircraft, with an engine value of USD165 million list price;
- OKAY Airlines: Ordered ten CFM56-7B-powered B737NG in an engine order valued at USD140 million list price;
- Spring Airlines: Selected CFM56-5B engines to power four new A320 family aircraft in an engine order valued at USD70 million list price. The airline also extended its OnPointSM solution agreement with GE Aviation to include these engines as well as three additional leased aircraft. The total OnPoint solution agreement (covering all 37 aircraft) is valued at USD300 million of the life of the contract;
- Air Austral: Ordered two GE90-115B-powered B777-200LR aircraft. The engine order is valued at more than USD100 million list price;
- Qatar Airways: Converted two options for GE90-115B-powered B777-200LR aircraft into firm orders. The engine order is valued at more than USD100 million list price;
- Republic Airways: Signed a LoI to purchase 24 CF34-10E-powered E190 aircraft. The CF34-10E engine order is valued at more than USD190 million list price.
GE Aviation also launched its new myEnginesT digital services, with this consituting one of the latest announcement in GE’s growing USD4 billion-per-year software and solutions business. LAN Airlines is the launch customer for myEngines digital services, which will cover LAN's entire fleet of CF6-80C2, GE90-115B, CFM56-5B and –5C engines. GE Aviation also announced its OnPointSM Fuel & Carbon Solutions was added as the newest product in GE’s ecomagination portfolio. [more]