Emirates Airlines Fleet Expansion Provides $1 Billion
PARIS - One of the world's fastest growing airlines, Emirates Airlines is leasing 26 new Boeing 777-300ER aircraft powered by GE Aircraft Engines' GE90 engines.
The fleet expansion provides GEAE with a new order for 15 GE90 engines, as well as a 12-year engine Maintenance Cost Per Hoursm (MCPHsm) contract with Emirates for the new engine fleet. Combined, the engine sales and service agreement are valued at more than $1 billion to GEAE.
"This is a huge day in building our long-term relationship with Emirates," said David Calhoun, president and chief executive officer at GEAE. "Emirates is expanding worldwide, and the GE90-powered 777s will provide the best economics on the routes they support."
Dubai-based Emirates is leasing 14 of its 777-300ERs from GE Capital Aviation Services (GECAS) and 12 of the aircraft from International Lease Finance Corporation (ILFC). To fulfill this obligation, GECAS intends to order an additional four 777-300ER aircraft. This order results in GEAE selling the 15 additional GE90 engines, including seven spare engines.
GE Engine Services (GEES), a division of GE Aircraft Engines, will perform maintenance and overhaul for the GE90-115B fleet at the company's full-service facility in Cardiff, Wales, United Kingdom. The MCPHsm program uses GEES' maintenance network, engineering resources, and program management expertise to maintain an individual customer's fleet based on a flat rate per engine flight hour, enabling the customer to forecast operating costs with greater accuracy.
The GE90-115B, being certified at an unprecedented 115,000 pounds of thrust, is the engine for Boeing's 777-300ER and 777-200LR aircraft. The engine is now powering Boeing's 777-300ER in a 1,600-hour flight-test program. U.S. Federal Aviation Administration and European Joint Aviation Authorities certification for this engine/aircraft combination is anticipated in early 2004.
Total GE90-115B engine orders to date are valued at more than $2.5 billion.
Snecma Moteurs, IHI, and FiatAvio are participants on the GE90-115B engine program.
GEAE is a leading producer of large and small jet engines for commercial and military aircraft, as well as marine applications. GEES has operations worldwide for engine overhaul, component repair, accessories, engine testing, and on-wing support. GEAE is investing approximately $1 billion (U.S.) annually to create new propulsion systems - from regional jet engines to the world's most powerful jet engine - to enhance airline profitability and address more-stringent environmental regulatory requirements.