GE Engine Services Awarded $34 Million Maintenance Agreement By Northwest Airlines
EVENDALE, OHIO - GE Engine Services (GEES) today announced that Northwest Airlines has reached an agreement whereby the engines for its Bombardier Regional Jet aircraft being flown by Northwest regional carriers will be maintained under a $34 million, five-year engine maintenance and overhaul agreement.
The agreement will cover all CF34-3B1 engines in Northwest's CRJ440 and CRJ200 fleets. Currently, Northwest Airlink operator Express Airlines I, Inc., headquartered in Memphis, Tennessee, is operating 23 CRJ200s with 19 more scheduled for firm delivery. Twelve previously ordered CRJ200's plus 75 recently ordered CRJ440's have not been assigned to a specific carrier but will also be included in the agreement. These aircraft are scheduled to be delivered between 2002 and 2005. Up to 150 option aircraft, if exercised by Northwest, will also be covered by the agreement.
The agreement also includes a five-year extension option. The potential value of GE's maintenance agreement with the Northwest Airlink operators, if all options are exercised on the additional aircraft, will exceed $400 million.
Under the agreement, maintenance and overhaul work will be conducted at GE's Strother service facility, near Arkansas City, Kansas.
GE Engine Services, with 2000 revenues of $6.5 billion, 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. Through GE-IAI Aviation Services, GE Engine Services makes these services plus airframe maintenance available from a single source.