Air Canada Commits to GE's OnPoint Solution Agreement for Its GEnx Engine Fleet

June 18, 2013

LE BOURGET - Air Canada has committed to a 15-year OnPointSM solution agreement for the maintenance, repair and overhaul of its GEnx-1B engines that power its Boeing 787 aircraft. The value of the OnPoint solution agreement is not disclosed.

"GE and Air Canada have expanded their services relationship during the last few years and we look forward to providing the airline with OEM quality material and workscoping to keep the GEnx engines in optimal performing conditions," said Paul McElhinney, president of GE Aviation's services operation.

Air Canada placed an order for 37 firm GEnx-1B-powered Boeing 787 aircraft, with options for 13 additional aircraft and 10 rolling options. The airline operates a large GE and CFM56* powered fleet including GE90-powered Boeing 777s, CF6-powered Boeing 767s, CFM56*-powered Airbus A320s, CF34-powered Bombardier CRJ200/705s and Embraer E175/190s.

"We are very happy to be moving forward with GE's OnPoint solution for our GEnx engines. We are looking forward to our collaboration and growing our engine maintenance relationship with such a strong OEM," said Klaus Goersch, Air Canada's Executive Vice President and Chief Operating Officer.

The GEnx-1B engine is the best-selling engine on the Boeing 787 Dreamliner. The engine has accumulated more than 58,000 flight hours and more than 13,000 cycles since entering service in 2012. Almost 850 GEnx-1B engines have been sold to more than 30 customers.

The GEnx engine family is the fastest-selling engine in GE Aviation history with more than 1,300 engines on order. Compared to GE's CF6 engine, the GEnx engine offers up to 15 percent better fuel efficiency, which translates to 15 percent less CO2. The GEnx's innovative twin-annular pre-swirl (TAPS) combustor dramatically reduces NOx gases as much as 55 percent below today's regulatory limits and other regulated gases as much as 90 percent. Based on the ratio of decibels to pounds of thrust, the GEnx is the quietest engine GE produces due to the large, more efficient fan blades that operate at slower tip speed, resulting in about 30 percent lower noise levels.

The GEnx is part of GE's "ecomagination" product portfolio - GE's business strategy to develop new, cost-effective technologies that enhance customers' environmental and operating performance.

Revenue-sharing participants on the GEnx are IHI Corporation of Japan, Avio SpA. of Italy, Volvo Aero of Sweden, MTU of Germany, TechSpace Aero of Belgium, Snecma (SAFRAN Group) of France and Samsung Techwin of Korea.

OnPoint solutions are customized service agreements tailored to the operational and financial needs of each customer for any size fleet. These agreements are designed to help lower the customers' cost of ownership and maximize the use of their assets. Backed by GE's global support network, OnPoint services may include overhaul, on wing support, new and used serviceable parts, component repair, technology upgrades, engine leasing, integrated systems support and diagnostics and integrated systems.

Air Canada is Canada's largest airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. transborder market and in the international market to and from Canada. Together with its Air Canada Express regional partners, Air Canada serves close to 35 million passengers annually and provides direct passenger service to more than 175 destinations on five continents. Air Canada is a founding member of Star Allianceā„¢, the world's most comprehensive air transportation network. For more information, visit aircanada.com.

GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet, turboprop and turboshaft engines, components and integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings.