Outstanding Year for GE Engine Services

February 24, 1998

SINGAPORE - GE Engine Services, Inc., the industry leader in total aviation services, has enjoyed its most outstanding year ever.

In 1997, GE Engine Services received orders worth more than $3.6 billion, representing a $1.0 billion, or 38 percent, order increase over 1996. Also in 1997, GE Engine Services won multi-year maintenance and overhaul contracts worth more than $6 billion, representing an increase of more than 45 percent over 1996. Highlights from GE Engine Services' order book include:

  • A multi-year, multi-million dollar contract with US Airways to maintain as many as 400 CFM56-5 engines powering US Airways' Airbus A319/320/321 fleet;
  • A five-year, multi-million dollar contract to overhaul and repair 97 CFM56-2 engines powering Emery Worldwide's McDonnell Douglas DC-8-71 and -73 aircraft.
  • A 10-year, multi-million dollar contract for the maintenance and repair of approximately 125 GE CF6-6 engines powering Federal Express' McDonnell Douglas DC-10 fleet;
  • A seven-year, $200 million contract from American Airlines to maintain CF6-80C2 engines powering Airbus A300 aircraft.

As the first service provider to recognize that airlines are refocusing efforts on moving passengers and looking for outside services for engine maintenance and repair, GE Engine Services is making major global investments to provide value to customers. Recent investments, designed to help customers manage future costs, increase engine time on wing, and lower the overall cost of ownership, include:

  • Acquiring Greenwich Air Services and UNC, Inc. in September 1997. Greenwich, a jet maintenance and overhaul company that services primarily large commercial engines, operates eight facilities in the United States and Scotland. UNC, Inc. maintains and overhauls primarily smaller engines for corporate and military aircraft. UNC, Inc. includes Garrett Aviation Services;
  • Enhancing GE Engine Services' capabilities in the Pacific Rim with the creation of Aero '97, a joint venture between GE and Malaysia Airlines, located in Kuala Lumpur. Joint venture discussions also continue with Philippine Airlines and EVA Airways;
  • Opening Airfoil Technologies Singapore, a subsidiary of Airfoil Technologies International, the joint venture between GE Aircraft Engines and Sermatech International. Airfoil Technologies maintains its headquarters in the U.S. in Cincinnati, Ohio, and operates additional plants in Mentor, Ohio; Compton, California; and Ripley, Derbyshire, U.K. The Singapore facility, which will be able to process more than one million airfoils per year with industry-leading turnaround times, will open during the Asian Aerospace '98 air show in Singapore;
  • Expanding GE On-Wing Support, Inc., a subsidiary of GE Engine Services. Providing rapid response to airline customers worldwide 24 hours a day, 365 days a year, On-Wing SupportSM will open additional sites in Dallas, New York, and Miami. On-Wing Support already operates from: Heathrow Airport in London, U.K.; Luton Airport, near London; and the Greater Cincinnati/Northern Kentucky International Airport, near Cincinnati, Ohio.

In addition, GE Engine Services is the industry leader in providing cost-effective, innovative products for airline customers. Some of these new products include:

  • Maintenance Cost Per Hour (MCPH)SM, which provides engine maintenance based on a flat rate per engine flight hour, thus allowing airlines to budget their maintenance costs more accurately;
  • Accessory services, a newly formed business unit combining seven facilities that offer customers a "one-stop shop" for all propulsion line-replaceable units (LRUs);
  • Remote diagnostics, which provide "real time" remote monitoring/diagnostic information during flight to prevent delays and cancellations, extend engine time on wing, and reduce maintenance expenses;
  • Material management products, including Asset Management and Material By The Hour;
  • Spare engine leasing, which aligns spare engine availability with a customer's operational needs;

GE Engine Services, which has its headquarters in Cincinnati, Ohio, provides comprehensive overhaul and repair of aircraft engines, components, and accessories of GE Aircraft Engines and of CFM International, the 50/50 joint company of Snecma of France and General Electric of the United States, as well as engines produced by other manufacturers. GE Engine Services has overhaul and repair facilities located at: Nantgarw, Wales; Singapore; Ontario, California; Strother Field, near Arkansas City, Kansas; Miami, Florida; Fort Worth/Dallas, Texas; Prestwick, Scotland; Petropolis, Brazil; and Cincinnati, Ohio.