$40 Billion For GE And CFM International At Dubai Show

GE Aviation and CFM International received commitments for engines and services valued at $40 billion (USD list price) at this week’s Dubai Air Show.

These commitments will ultimately translate into purchase orders that will grow GE Aviation’s equipment and services backlog, which reached $114 billion by the end of this year’s third quarter. This total includes an equipment (mostly jet engines) backlog of $28.3 billion – which increased 31 percent over the past year.

Among GE’s highlights at the Dubai show was Emirates airlines’ commitment for 150 Boeing 777X twin-engine aircraft and 300 GE9X engines. This $11 billion engine commitment represents GE Aviation’s largest ever commercial jet engine award from an airline.

Meanwhile, CFM International, the 50/50 joint company of GE and Snecma (Safran), is experiencing the fastest engine orders ramp up in commercial aviation with its LEAP engine for narrow-body aircraft. With more than 450 LEAP orders at the Dubai show, total orders and commitments for the LEAP engine have surpassed 5,800 engines.

“Year after year, GE has made enormous investments in new technologies that are driving our sales success,” said David Joyce, president and CEO of GE Aviation. “From ceramic matrix composites unique to the propulsion industry to the highest pressure ratios in our compressors, GE is developing a portfolio of reliable technologies that create new levels of operating efficiencies that our airline customers need.”

The installed base of commercial engines in service for GE and its venture companies will grow from today’s 32,000 to more than 46,000 by 2020. And GE Aviation is ready. To handle the production growth, the company this year has opened or broken ground on three new manufacturing plants in the United States. Between 2013 and 2017, GE Aviation will invest $3.5 billion in new plant and equipment for its expanding global network of operations.

If you liked this article you might like

GE Nearing Deal to Sell Industrial Solutions Unit to Swiss-Based ABB

How to Fire People Like Former General Electric CEO Jack Welch

Tax Reform Is Coming and That Means Trump Stock Rally Is Ready to Kill It Again

'Trump Stock' Rally Is Back on Track

These Stocks Pay You to Own Them