$26 Billion Jackpot For General Electric Company (NYSE:GE) Aviation
During the opening day of the Dubai Air Show, General Electric Company (NYSE:GE) Aviation announced that it has won $26 billion in The Boeing Company (NYSE:BA) jet engine orders. The company has announced new jet engine contracts and services agreements for Boeing aircraft from three airlines in the Middle East, including Emirates, Qatar Airways, and Etihad Airways.
Collectively, the three airlines ordered 450 of the new GE9X engine, which is now under development for the new Boeing 777X. The company also got orders for GEnx engines for the Boeing 787 and GE90 engines for the Boeing 777.
Under the deal with EMIRATES, GE Aviation will supply 300 GE9X engines for its new 777X fleet. The agreement is worth above $11 billion.
Etihad Airways ordered for total 56 engines, in a deal worth $3 billion. Etihad selected GE engines to power its 56 Boeing wide-body aircraft, which includes 25 GE9X-powered Boeing 777X, 30 GEnx-1B-powered Boeing 787-10, and one GE90-115B-powered Boeing 777-200LR aircraft.
Etihad Airways has also entered into a 15-year OnPoint solution agreements to cover all the engines in this order. The agreements are valued at $8 billion over the life of the contract.
In addition, Qatar Airways ordered for 50 GE9X-powered Boeing 777X aircraft, for a deal valued at $3.8 billion.
David Joyce, president and chief executive officer of GE Aviation, “The new GE9X engine will be the largest and most fuel efficient engine GE has ever designed and manufactured and the rising number of orders for the engine-aircraft combination serve as a testament to the confidence our customers have in the product.”
“The GE9X engine for Boeing’s 777X aircraft will be in the 100,000-pound thrust class with a 10 percent improvement in fuel burn over today’s GE90-115B. It features the industry’s largest front fan, composite fan case and fourth-generation composite fan blades, highest pressure ratio compressor for any large GE engine, third-generation TAPS (twin annular pre-swirl) combustor for greater efficiency and low emissions, and ceramic matrix composite (CMC) material in the combustor and turbine.”