GE Aviation and its JV companies announce about US$10 billion in deals from Middle East region at 2010 Farnborough Air Show
GE Aviation along with its joint venture companies, CFM International and the Engine Alliance, have amassed engine and services orders valued at more than US$16 billion at the recent 2010 Farnborough Air Show, of which more than half – nearly US$10 billon – were signed by leading airlines in the Middle East region, notably, the UAE. Of the nearly US$10 billion in deals, Emirates, the Dubai-based international airline, accounted for US$7.8 billion.
"GE Aviation is excited with the tremendous amount of engine and services orders received at the 2010 Farnborough Air Show," said David Joyce, president and chief executive office of GE Aviation. "The level of activity at the show demonstrates that the aviation industry is beginning to emerge from the economic downturn."
GE Aviation and its joint companies garnered US$11 billion in engine orders and US$5 billion in long-term, high-margin service agreements, including several prestigious orders from the Middle East region from leading players, Emirates, Air Arabia, Royal Jordanian and Qatar Airways.
Muhammad Al-Lamadani. General Manager, Eastern Europe, Middle East & CIS, GE Aviation, said: “Aviation continues to be one of the strong growth pillars of the region, powered by infrastructure development and the focus of the regional Governments to strengthen airline connectivity to boost tourism and business. GE Aviation and its joint venture companies have underscored their significant partnership role through several deals, reiterating the long-standing association with the region’s aviation industry leaders.”
Among the highlights of the partnerships from the Middle East region include:
• Emirates ordered 30 GE90-115B-powered Boeing 777-300ER aircraft valued at US$2 billion list price. Emirates also signed a 12-year OnPointSM solution services agreement for the maintenance and overhaul of its GE90-115B engines worth more than US$1 billion over its life.
• Emirates selected the Engine Alliance GP7200 engines to power its 32 additional A380 aircraft announced last month. The total value of the engine and Fleet Management Agreement is approximately US$4.8 billion over the life of the contract.
• Air Arabia, the first and largest low-cost carrier in the Middle East and North Africa, selected the CFM56-5B engine to power its 44 Airbus A320 family aircraft order announced in 2007. This new engine selection, which will more than double the airlines’ CFM56-5B powered A320 fleet, is valued at more than US$620 million U.S. at list price. Together with the engine selection, Air Arabia also signed a multi-year Rate per Flight Hour (RPFH) service agreement for its CFM56-5B fleet.
• Qatar Airways converted two options for GE90-115B-powered Boeing 777-200LR aircraft into firm orders. The engine order is valued at more than US$100 million list price.
• Royal Jordanian has agreed to purchase six GEnx-1B engines to power its three additional Boeing 787 Dreamliner aircraft. This new order is in addition to the four purchased and four leased GEnx-1B-powered Boeing 787 aircraft that Royal Jordanian announced in 2007. The six newly purchased GEnx engines will be covered in the Royal Jordanian’s 12-year OnPoint solution services agreement that was signed in 2007 and will provide maintenance, repair and overhaul services to the airline’s GEnx fleet.
The Middle East deals announced at Farnborough complement another significant order inked by GE Aviation with Etihad Airways, the national airlines of the United Arab Emirates. Etihad had finalized its purchase of 70 GEnx-1B engines to power the 35 Boeing 787 Dreamliner aircraft along with a multi-year OnPoint solution services agreement on the engines. The engine order is valued at US$1.8 billion and the OnPoint solution agreement is valued at US$2.5 billion over its life. Etihad had announced the engine selection and services agreement at the Paris Air Show in 2009.
GE Capital Aviation Services also ordered CFM56-7B engines to power 40 Boeing 737-700/-800/-900 aircraft and CFM56-5B engines to power its 60 Airbus A320 aircraft. The combined engine order is valued at US$1.4 billion at list price.
At Farnborough, GE Aviation launched its new myEnginesTM digital services, a suite of digital applications to help customers better manage their engine fleets and improve productivity. This is the latest announcement in GE’s growing US$4 billion-per-year software and solutions business.
GE Aviation also announced its OnPointSM Fuel & Carbon Solutions was added as the newest product in GE’s ecomagination portfolio. OnPoint Fuel and Carbon Solutions could help GE Aviation’s customers reduce their fuel spend by an average of three percent.