GE Aviation Systems, an operating unit of General Electric Company (GE), has recently procured a maintenance, repair and overhaul (MRO) contract worth $13 billion from Emirates airline for its new GE9X engines that power The Boeing Company’s (BA) 777X aircraft. The service agreement is reportedly the largest ever commercial jet engine award from an airline that has been secured by GE Aviation.
The OnPoint MRO solution agreement for 150 Boeing 777X twin-engine aircraft complements a $15-billion service agreement for 300 GE9X engines inked in 2013. With round-the-clock support from GE Aviation’s global network, OnPoint solutions offer customized service agreements for the operational and financial needs of each customer for any size fleet. These include overhaul services, on wing support, new and used serviceable parts, component repair, technology upgrades, engine leasing and integrated systems support.
In addition to a comprehensive MRO support that strengthens the business relationship between Emirates airline, one of the world’s largest operators of Boeing aircraft, and GE Aviation, the contract offers a steady revenue stream for parent company General Electric.
In a separate incident, easyJet, one of Europe's leading airlines, placed a $3.3-billion order for nearly 300 CFM engines. CFM International is a 50-50 joint venture between Snecma S.A., a French multinational aircraft manufacturer and subsidiary of Safran SA (SAFRY), and GE Aviation. With these contracts, General Electric is close to racking up over $30 billion engine orders from the Farnborough Airshow in England.
General Electric is one of the most diversified technologies and financial service corporations in the world. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. GE Aviation is a leading supplier of commercial and military jet engines and components. It also provides avionics, electric power, and mechanical systems for aircraft along with an extensive global service network to support these products.
General Electric currently has a Zacks Rank #3 (Hold). Another better-ranked stock in the industry worth reckoning includes United Technologies Corp. (UTX), carrying a Zacks Rank #2 (Buy).
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