EVENDALE, Ohio - GE Engine Services (GEES) has been awarded a 16-year agreement, valued at more than $1 billion, from SkyWest Airlines to perform engine maintenance for SkyWest's fleet of CRJ100 and CRJ200 aircraft.

The 16-year (Maintenance Cost Per HourSM) MCPHSM contract covers SkyWest's fleet of 40 CF34-3A1 and -3B1-powered CRJ aircraft, and also includes CRJ aircraft on firm order to be delivered through 2004. In total, the agreement covers 140 CRJ aircraft. Maintenance and overhaul work will be conducted at GE's Strother facility, near Arkansas City, Kansas.

The customized MCPH program utilizes GEES' extensive services network, engineering resources, and program management expertise to maintain the individual customer's fleet based on a flat rate per engine flight hour, enabling the customer to forecast operating costs with greater accuracy. Through GEES' customized offerings, SkyWest can further reduce costs by performing some engine repairs in their own facility, receiving credits for material, labor, and reduced transportation costs.

In addition, the agreement calls for GEES to convert 20 CF34-3A1 engines to the CF34-3B1 configuration. (GEES will also convert 16 additional engines to the CF34-3B1 configuration under a previous agreement.) This upgrade package provides increased take-off and climb thrust capability, 2-3 percent reduction in fuel burn, reduced maintenance costs, parts count reduction and higher residual value.

"We are pleased to be chosen as SkyWest's engine maintenance provider and to provide performance upgrades for their regional jet aircraft," said George Oliver, president and CEO of GE Engine Services. "Our goal is to provide customized solutions that meet our customer's needs for quality service and enhanced engine performance and value."

GE's engine upgrades infuse new technology into the installed base and improves aircraft performance, generates incremental revenue and reduces cost of ownership. The GE CF34-3 entered regional jet service in 1992 on the Bombardier CRJ100. The CF34 continues to provide economy and excellent reliability for high utilization operations comparable to large commercial turbofan engines powering wide-body airliners.
GE Engine Services, a division of GE Aircraft Engines, is a global provider of maintenance and support services for operators of GE and non-GE engines. In addition to overhaul and repair, GE Engine Services’ solutions to the customer’s maintenance needs include component repair, on wing support, and spare parts. GE Engine Services also maintains engine accessories and key aircraft accessories, provides remote diagnostics monitoring of aircraft in flight, and offers a full range of engine leasing plans. Visit GE Aircraft Engines online at www.geae.com.