Ontario Teachers' Pension Plan Forms a Strategic Partnership with GE Aviation
CINCINNATI, OH - The Ontario Teachers' Pension Plan (Teachers') and GE Aviation announced a strategic partnership to support the development of advanced technologies for the GE9X engine. The GE9X engine will power Boeing's new wide-body 777X aircraft, and will provide a 10% improvement in fuel consumption over the existing GE90-115B engine. The 777X aircraft is scheduled to enter service in 2020.
"The GE9X combined with the 777X aircraft is expected to provide unmatched performance in the industry," said Bill Fitzgerald, Vice President and General Manager of GE Aviation's Commercial Engine Operation. "While the engine is still in development, unprecedented customer demand has already resulted in 300 aircraft orders six years ahead of the expected service entry. We are enthusiastic to collaborate on this commercial opportunity with a strategic GE partner like Teachers'."
"Our assessment of this program has given us belief in the promise of GE9X's technologies and commercial potential," said Michael Wissell, Teachers' Senior Vice President, Public Equities. "Relationship investments are an important part of our portfolio, and we are interested in continuing to co-invest with GE on future deals, including additional participation on the GE9X program."
Teachers' noted that it will finance its investment in this transaction through a relationship with the Development Bank of Japan Inc.
About GE Aviation
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.
About Ontario Teachers' Pension Plan
With $140.8 billion in net assets as of December 31, 2013, the Ontario Teachers' Pension Plan is the largest single-profession pension plan in Canada. An independent organization, it invests the pension fund's assets and administers the defined benefit pensions of 307,000 active and retired teachers in Ontario.