GE Annual Report 2000: Business Review: Aircraft Engines




			Aircraft Engines Web Site


		GE's new CF34-8 and -10 engines are the power plants of choice for most of today's new 70- to 90-passenger regional jets, including Bombardier's CRJ700 airliner, which entered revenue service early in 2001 with launch customer Brit Air of France.

GE Aircraft Engines delivered higher revenues and double-digit earnings growth while laying a solid foundation for continued future success. Even more exciting is how we did it:


			Key strategic wins launched new engine programs that will boost earnings for decades.


			The backlog for engine service contracts reached $19 billion.


			Our Six Sigma Quality teams helped airlines realize more than $300 million in savings.


			Revenues transacted over the Internet through our Customer Web Center surpassed $1 billion.

Simply put, technology investments, digitization of our workplace and innovative solutions to better engage our customers are transforming us.

Again in 2000, GE Aircraft Engines and CFM International, our 50/50 joint company with Snecma of France, together won more large commercial engine orders than any other engine manufacturer. Our combined sales were bolstered by wins from Southwest Airlines, Air France and American Trans Air. Launched by six customers, Boeing's longer-range 777 aircraft is powered by the new GE90-115B™ engine, which has orders now exceeding $1.5 billion.

We also booked nearly $1.1 billion of regional jet engine orders. Delta Connection carriers signed the largest-ever regional jet engine sale: GE CF34™ engines for 104 Bombardier CRJs and options for 396 additional airplanes. Orders for CF34 engines, which also power Fairchild Dornier and Embraer regional jets, now exceed $6 billion.

Our growing base of nearly 14,000 commercial jet engines in revenue service creates multi-billion-dollar opportunities for our Services group to reduce airline costs through innovative repairs and materials and engine upgrade programs.

In our military sector, Lockheed Martin selected the CF6-80C2™ engine for the C-5 Galaxy re-engining, a high-priority U.S. Air Force program. We launched a growth version of the F110 fighter engine, and the U.S. Navy awarded a $385 million contract for GE F414™ engines for the F/A-18E/F aircraft. The U.S. Army awarded a $196 million engine development contract for self-propelled artillery and tanks.

At the heart of everything we do are Six Sigma processes to drive profitability and enhance customer productivity. Six Sigma projects have improved our on-time engine delivery rate to 99%. Our "at the customer, for the customer" program has resulted in more than 1,200 customer Six Sigma projects, benefiting airlines worldwide.

Our e-Business initiatives are changing how we work, interact with suppliers and support customers in ways unimaginable a few years ago. More than 360 customers transact on specially tailored customer sites on our Customer Web Center, providing them with major cost savings. Also, we are establishing a common Web connectivity with customer and supplier procurement and inventory systems that will make day-to-day transacting an even more efficient process. Efforts to bring customers closer through the Web are only just beginning.

This winning combination of products and services, marketplace success and culture-changing initiatives puts us in an outstanding position to assume the successful operations of Honeywell Aerospace when that acquisition is completed in 2001.

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