Introduction
General Electric (GE) is a well-known multinational conglomerate that operates in various industries, including aviation. GE Aerospace is a division of GE that focuses on providing innovative solutions for commercial and military aircraft engines. The company has recently announced that its engine franchise is experiencing high-growth and profitability, with approximately 70% of additive manufacturing (AM) mix and ramping engine deliveries for LEAP and GEnx.
GE Aerospace’s High-Growth and Profitable Engine Franchise
GE Aerospace’s engine franchise is performing well and is expected to continue growing. The company’s engine deliveries for LEAP and GEnx are expected to increase by over 50% and 53% in 2023, respectively. This growth is attributed to the company’s sole-source (MAX) and competitive majority share (A320neo, 787) agreements.
The company’s success can be attributed to its focus on AM technology, which involves using 3D printing techniques to create parts for engines. Approximately 70% of GE Aerospace’s engine franchise is made using AM technology, which has resulted in reduced lead times, lower costs, and improved performance.
In addition to its focus on AM technology, GE Aerospace has also invested in innovative solutions to reduce fuel consumption and emissions. The company’s LEAP and GEnx engines are designed to be more fuel-efficient, which not only reduces operating costs but also helps to reduce carbon emissions.
GE Aerospace has a long-standing relationship with Boeing, and the company’s sole-source agreement with MAX has been a significant driver of growth for the engine franchise. The MAX program is expected to deliver approximately 450 engines to Boeing in 2023, which will contribute significantly to the engine franchise’s growth.
The company’s competitive majority share agreements with A320neo and 787 have also been instrumental in driving growth for GE Aerospace. The A320neo and 787 programs are expected to deliver approximately 750 and 350 engines, respectively, in 2023.
Conclusion
GE Aerospace’s engine franchise is experiencing high-growth and profitability, thanks to its focus on AM technology, innovative solutions to reduce fuel consumption and emissions, and its agreements with Boeing, A320neo, and 787. The company’s engine deliveries for LEAP and GEnx are expected to increase significantly in 2023, which bodes well for the company’s future. As a leading provider of innovative solutions for commercial and military aircraft engines, GE Aerospace is well-positioned to continue its success in the aviation industry.
