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Airlines Sign Long-Term Agreements for New GE Inventory Management Program

August 22, 2000

Ansett Australia and Air New Zealand Engineering Services (ANNZES) have selected GE Aircraft Engines' new Inventory Management program to manage all GE and CFM International aircraft engine parts used during engine overhaul.GE Inventory Management assumes responsibility for parts inventory at all levels, including the supply of new parts, the overhaul of selected components, paperwork, storage, transportation and packaging. The program is designed to save airline customers the expense of maintaining inventory and to assist in the reduction of the total time taken to conduct an engine overhaul.ANNZES, the first customer of this program, signed a five-year agreement."GE Inventory Management is a great tool for airlines who want to get out of the inventory business yet still require the right parts to be available at the right time," said Jack Lutze, general manager, GE Aircraft Engines South Asia-Pacific. "GE has clearly demonstrated reliability and proficiency in the supply and overhaul of engine components and in managing parts inventory, and we are keen to share our expertise."GE's Inventory Management program has evolved from GE's Asset Management program. Ansett and Air New Zealand were both previously GE Asset Management customers. Under that program, airlines send aircraft engine parts to GE in kit form, and GE returns the kits, with either overhauled hardware or new, yet the airline still owns a substantial amount of inventory and is responsible for packaging and transporting hardware."By moving inventory to GE Logistics Support Centers, and using GE e-Business expertise to track parts, take orders, and send invoices, airlines no longer have the expense of maintaining inventory," Lutze said. "We assume responsibility for each part from the moment it enters our Logistics Support Center until it or a replacement is returned to the customer."GE Inventory Management Logistics Support Centers will be established in Melbourne, Australia, and Auckland, New Zealand. The Melbourne center is scheduled to open on August 22, 2000, followed by the Auckland center on August 25, 2000.