GE Landed $8 Billion in Orders at Paris Air Show -- GEnx Launch, Mubadala Agreement, Engine Sales and Services Are Show Highlights
LE BOURGET, France -- With its unveiling of the fastest selling large jet engine in GE history - the GEnx - and its strategic agreement with Mubadala Development Company, GE (NYSE: GE) and its joint ventures, CFM* and Engine Alliance+, announced more than $8 billion in orders at this week's Paris Air Show, which is held at Paris' Le Bourget airport.
"Every two years, the global aviation industry arrives in Paris to showcase its leading edge technologies and develop the relationships which keep the world flying," said John Rice, Vice Chairman of GE. "Our GEnx engine is proof that fuel-efficient, lower emissions innovation remains critical to aviation customers – and the GE/Mubadala agreement further emphasizes the growing global nature of the industry and world-class companies who are increasing their aerospace commitments."
GE and its joint ventures, CFM International and the Engine Alliance, announced 17 deals and partnerships during a four-day span, totaling more than $8 billion. In these announcements, engine orders reflect the list price while the service agreements values reflect the life of the service contract. Highlights of these announcements include:
Etihad Airways: Etihad Airways, the national airline of the United Arab Emirates, has selected the GEnx-1B engine to power its new fleet of 35 Boeing 787-9 aircraft and 10 GE90-115B-powered Boeing 777-300ER aircraft. The total value of both engine orders is worth $2.2 billion (USD) list price. Additionally, the airline holds options for 25 Boeing 787 aircraft and 10 Boeing 777-300ERs with purchase rights for a further 10 Boeing 787 and five Boeing 777-300ER aircraft.
Mubadala Development Company: GE and Abu Dhabi's Mubadala Development Company today signed an extensive agreement that expands GE's global network of engine maintenance, repair and overhaul providers in the Middle East and further advances Mubadala's plans to build a global MRO network centered in Abu Dhabi. The announcement extends the partnership between the two companies announced in 2008.
$5B in services, repair and overhaul contracts: GE and its joint ventures announced nine services agreements, including comprehensive OnPointSM solution agreements, valued at $5 billion with the following airlines: Etihad ($1.7B); WestJet ($850MM); Delta Air Lines; Air Italy; Cebu Pacific ($100MM); J-AIR; LAN ($135MM); and TAM ($345MM).
$3B in engine sales: In addition to the $2.2 billion GE engine order from Etihad, GE announced engine sales from across its product portfolio - including orders from CFM International and the Engine Alliance - with a list price value of more than $3 billion with the following airlines: Etihad (Engine Alliance, GE value $650MM); Air Nostrum; Cebu Pacific (CFM International, GE value $155MM); Air Austral (Engine Alliance), Atlantic Airways (CFM International); and Aigle Azur (CFM International)
GE Aviation, an operating unit of General Electric Company (NYSE: GE), is a world-leading provider of commercial and military jet engines and components as well as avionics, electric power, and mechanical systems for aircraft. GE Aviation also has a global service network to support these offerings.
*CFM International is a 50/50 joint company between General Electric Company and Snecma (SAFRAN Group).
+The Engine Alliance is a 50/50 joint venture of General Electric (NYSE:GE) and Pratt & Whitney, a unit of United Technologies Corp. (NYSE:UTX).
SMOnPoint is a service mark of General Electric Company.