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We again won the largest share of the world's large commercial jet engine market.
Eugene F. Murphy, President and Chief Executive Officer, GE Aircraft Engines
GE Aircraft Engines increased its worldwide leadership in 1994 despite a continuing downturn in commercial and military markets that resulted in lower revenues and earnings. During the year, GE and CFM International, our 50/50 joint company with SNECMA of France, again won more than 50% of the world's large commercial jet engine orders. This market success is based on our ability to deliver cost-effective technology while focusing on speed, productivity and quality. The new GE90 engine, being developed for the Boeing 777, achieved key technical milestones for 1994, including record thrust levels. In February 1995, the FAA certified the GE90 engine and a GE90-powered Boeing 777 began flight testing. The GE90 has the lead in orders for an increased-capacity model of the Boeing 777, reflecting market recognition of the engine's growth capabilities. Our largest commercial engine in service, the CF6-80E1, enjoyed one of our best-ever product introductions during 1994, powering the Airbus Industries A330. Our CF6-80C2 remains the world's best-selling and most-reliable engine for the current generation of wide-body aircraft.
CFM International won strategic engine orders in 1994, including major wins for Singapore Airlines' fleet of Airbus A340s and Air Canada's new Airbus A319s and A340s. Three new CFM56 models were certified in 1994, providing more power for the A340 and lower emissions for the A320. Southwest Airlines further expanded its CFM56-powered Boeing 737-300 fleet, and development continued on the CFM56-7 for Boeing's new 737-500X/-700/-800 series, launched by Southwest. GE's technology leadership extends to the military. A majority of the development work is completed on the F414 engine, recognized as a model program by the U.S. Navy for its top-priority F/A-18E/F jet. Our F110 engine was selected to power all U.S. Air Force F-16C/Ds ordered in 1994, and our T700 helicopter engine was procured by the U.S. government for the 16th consecutive year. A growth T700 engine also is under development. The marine and industrial sector launched a more powerful LM2500 engine and added low-emission combustion systems to its product line. Increases in regional traffic have positioned GE's small commercial engines for top-line growth. Our CF34 engine powers the 50-seat Canadair Regional Jet, which has doubled its production levels since 1992. We again achieved double-digit growth in engine services, securing long-term maintenance contracts with key customers such as Continental and KLM Royal Dutch airlines. Globalization continued unabated. In China, we are teaming with the Civil Aviation Administration of China to create an aircraft engine maintenance training school. In Russia, GE engines were selected for Kamov's new civil helicopter and for Sukhoi's S-80 civil aircraft. The entire business team has adopted "Bullet Train Thinking" with dramatic results. Order-to-remittance time has been reduced by more than 50%. Total business quality is being achieved through six Centers of Excellence, where cross-functional teams are co-located to produce particular parts of an engine. 1995 will see the introduction of the GE90 engine into commercial service, as well as a series of other additions to our product line. We are committed to significant growth in earnings on a modest increase in revenues for the year.
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