CINCINNATI, OH - With GE Commercial Aviation Services' (GECAS) Tuesday order for five-firm, 20-option ARJ21-700 regional jets, Commercial Aircraft Corporation of China, LTD (COMAC) has now taken orders for 206 of its new regional jet aircraft, which are powered by GE Aviation's CF34 engine.
COMAC sees a potential market for 850 ARJ21s over the next 20 years - representing a potential to GE of more than $4 billion in CF34 engine revenues.
The growing ARJ21-700 order book bolsters GE's rapidly expanding engine fleet for regional jets worldwide. Today, more than 4,200 CF34 engines power regional jets - a fleet that GE expects to surpass 8,600 CF34 engines by 2018 based on the strong demand for GE-powered regional aircraft.
The ARJ21, which seats 70 to 90 passengers, begins flight tests later this year. Shanghai-based COMAC is developing the aircraft for Chinese and export markets. GECAS becomes COMAC's first global aircraft leasing customer. Aircraft deliveries to GECAS will begin in 2013.
The first commercial jet aircraft indigenous to China, the ARJ21 combines Chinese intellectual property with GE engines, and airborne systems from leading European and North American companies. COMAC selected GE's CF34-10A engine in 2002. Since then, GE and COMAC collaborated closely during the aircraft's detailed design and the aircraft/engine integration phases.
The ARJ21 is part of China's dramatic aviation expansion. Fueled by economic growth, revenue passenger miles have increased significantly. There are currently 50 new airports scheduled for construction within China over the next five years to meet the higher demand.
As a result, feeder and point-to-point traffic could grow 12% annually over the next 20 years. The ARJ21 is being designed to meet China's diverse environment, specifically the hot temperature and high altitude conditions on many routes in Western China. The CF34-10A technology is ideally suited to this aircraft, with thrust to meet performance requirements, and lower-cost, highly-reliable operation.
GE Aviation activities have grown dramatically in China over the past decade. GE is the China airline industry's largest engine supplier with 1,000 airliners operating in China, powered by engines from GE or CFM International, a 50/50 joint company of GE and Snecma (SAFRAN).
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 integrated digital, electric power, and mechanical systems for aircraft. GE Aviation also has a global service network to support these offerings.