Orders for engines and services from GE and its joint venture CFM International at the 2012 Farnborough International Airshow earlier this month in England totaled almost $17.5 billion (USD) which includes $12.6 billion orders for CFM.
The Farnborough International Airshow is a seven-day international trade fair for the aerospace industry held in even-numbered years in mid-July at Farnborough Airport in Hampshire, England. It is known for announcements of new developments and orders.
"The results from this year's show are proof that GE Aviation and CFM International are on the right technology paths with our engine programs and service offerings," said David Joyce, president and chief executive officer of GE Aviation. "Our customers are embracing our product with their orders and we look forward to delivering on these significant commitments."
"The air shows are much more than a forum to announce orders. They're an opportunity to take the pulse of the industry, and I picked up a strong pulse this week," said Norman CT Liu, president and chief executive officer of GE Capital Aviation Service (GECAS). Despite today's economic environment, airlines are looking for newer, more fuel efficient aircraft. Our strategic orders the last two years position GECAS well to meet that demand."
The new contracts have a significant impact on the long term stability of GE Aviation in West Jefferson, said Jessica Ensani, plant leader for the past year and a half.
Ensani said she came to West Jefferson from GE headquarters in Cincinnati, Ohio, her hometown. She gained interest in the company through a college internship and a love of aviation. She has worked at several locations, and said she is enjoying West Jefferson which has a “phenomenal workforce.”
GE Aviation in West Jefferson employs 160, up 50 employees in the past three years, and is predicting to grow its commercial engine output by about 50 percent over the next several years. To prepare for all of this growth, the plant has invested over $25 million in the past five years, said Ensani.
The volume of the CFM56, GEnx, and GE90 engine orders is what is affecting the job growth. The latest LEAP engine (for which the West Jefferson plant develops rotating parts) will be the main driver for the next several years. Last year, the company had 1,500 orders for CFM and over 3,000 for LEAP.
The development of each GE engine is a national effort, with several GE Aviation facilities around the United States playing a part in the production and assembly. GE Aviation has a significant footprint in North Carolina with plants in Asheville, Durham, West Jefferson and Wilmington. These four facilities employ over 1,000 people working in high technology manufacturing jobs. These new orders signal secure, continued production well into the future.
Highlights from the 2012 Farnborough Airshow include:
• United Continental Holdings announced a firm order for 100 advanced LEAP-1B-powered Boeing 737 MAX airplanes and ordered 50 additional CFM56-7B-powered Boeing Next-Generation 737-900ER aircraft. The combined value of the engine order, along with a long-term service agreement, is approximately $5 billion U.S. at list price.
• GE Capital Aviation Services announced commitments for 75 LEAP-1B-powered Boeing 737 MAX aircraft, in addition to an additional 25 CFM56-7B-powered Boeing Next-Generation 737 aircraft. The engine commitments are valued at $2.4 billion list price.
• GE Aviation and Lockheed Martin announced a multi-million dollar agreement for the communication, navigation and air traffic management data link for the C-130J aircraft in the Block 8.1 configuration.
• CFM International launched a unique new product offering for leasing companies called Portable Maintenance for Lessors (PML) and signed Memorandums of Understanding (MOUs) with GECAS, SMBC Aviation Capital and Engine Lease Finance Corporate. The final agreement should be complete by year-end.
GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet and turboprop engines, components and integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings.
For more information, visit www.ge.com/aviation. Follow GE Aviation on Twitter at http://twitter.com/GEAviation and YouTube at http://www.youtube.com/user/GEAviation.
GECAS, the U.S. and Irish commercial aircraft financing and leasing business of GE, has a fleet of over 1,710 owned and serviced aircraft with approximately 235 airlines in over 75 countries. GECAS offers a wide range of aircraft types and financing options, including operating leases and secured debt financing, and also provides productivity solutions including spare engine leasing, spare parts financing and management. GECAS, a unit of GE Capital, has offices in 24 cities around the world.