July 15, 2004 -- FARNBOROUGH -- Revenues are strongly rebounding this year for General Electric Company's Aircraft Engines business at the same time the company aggressively introduces new jet engines into service to assure future growth.
GE's Aircraft Engines, a part of GE Transportation, anticipates revenues in 2004 of approximately $12 billion, which is up from $10.97 billion in 2003.
(GE Transportation, which includes both Aircraft Engines and GE's Rail business, anticipates 2004 total revenues of approximately $15 billion.)
GE's positive 2004 outlook is driven by an increased utilization of commercial aircraft worldwide, as well as a robust military business, particularly for engine spare parts and technology upgrades.
Also, GE's longtime leadership in jet propulsion is reflected in its growing base of engines in airline service. The installed base for engines produced by GE and CFM International, a 50/50 joint company of GE and Snecma Moteurs, exceeds 15,000 (from 5,000 in 1990) and is expected to surpass 25,000 engines within 10 years.
GE has the industry's fastest growing base of jet engines in service -- a key factor for gauging the long-term success of any jet engine manufacturer.
"Our continued investment in new engines and technologies has been in the area of $1 billion annually for several years," said David Calhoun, president and CEO of GE Transportation, on the eve of the Farnborough Air Show near London, England, which begins on July 19. "We have never been better positioned for a commercial aviation recovery."
New jet engines programs from GE and its partnerships recently completed, or in development, include:
GE90-115B: The GE90-115B engine, the sole engine for the Boeing 777-300ER and -200LR, is the world's most powerful engine. It entered revenue passenger service this spring on the first 777-300ERs delivered to Air France. The new GE90-115B, the latest GE90 family derivative, was certified on the aircraft earlier this year.
GP7200: The GP7200 is the best-selling engine on the super-jumbo Airbus A380. Being developed by the Engine Alliance, a joint company of GE and Pratt & Whitney, the GP7200 has begun ground testing, with certification testing to begin later this year. The GP7200 engine enters service in 2006.
GEnx: Full-scale development is now under way for GE's new GEnx engine, with several key technology-maturation tests scheduled for this year. Selected by Boeing to power its 7E7 Dreamliner, the GEnx engine is slated for certification in 2007.
CF34-10: The CF34-10E has been developed for the EMBRAER 190, which enters revenue service in 2005. A version of the CF34-10, the CF34-10A, is being developed for China's ARJ21 regional jet, which enters service later this decade.
CF34-8: GE's new CF34-8 family, which entered service last year, powers the Bombardier CRJ700 and CRJ900 and the EMBRAER 170.
F136: The GE Rolls-Royce Fighter Engine Team this year embarks on a series of full-engine development tests for the Joint Strike Fighter (JSF) Program. Proposal work by the Fighter Engine Team is underway on a new multi-year System Development and Demonstration contract award from the JSF Program Office.
"While we are excited by our new engines, we are also expanding our services opportunities for our mature engine products through the infusion of new technologies," Calhoun said.
In recent years, GE has introduced technology upgrade packages across its commercial and military product lines, including upgrades to its CFM56, GE90, and CF6 commercial engines, as well as for the F110 fighter engine and the T700 and CT7 helicopter engines.
GE Transportation - Aircraft Engines, a part of General Electric Company (NYSE: GE), is one of the world's leading manufacturers of jet engines for civil and military aircraft.
Rick Kennedy
GE Aviation
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