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GE Aerospace to invest $1 billion on upgrades at its engine service center

GE Aerospace on Friday revealed a plan to invest more than $1 billion over five years to broaden its maintenance, repair, and overhaul (MRO). facilities worldwide and lower turn-around times for its. consumers.

There has actually been a surge in need for after-market services. as a strong rebound in travel and an absence of new airplanes due to. production and engine problems has required airlines to keep older. jets in the air for longer.

Nevertheless, relentless lacks of labor, parts and raw. material have actually made it harder to stay up to date with client need.

As industry leaders gather at 2024's most popular air program. in Farnborough, England next week, engine repair work hold-ups will be. among the top items on their agenda.

Restricted capability at MRO stores has become a major restriction. for the international airline company market. Some airline CEOs have called. the engine repair hold-ups a bigger issue than production issues. at Airbus and Boeing.

GE Aerospace has actually set a goal to lower total turn-around. time at its repair shops by 30% from a year earlier. As part of the. investment, the business will include more engine test cells and. cutting-edge technology at its service center.

The business stated previously it would invest more than $650. million this year in its production facilities and supply. chain to increase production and in March, it informed financiers it. prepared to increase financial investments to minimize turn-around time at its. repair shops. However, it did not divulge the dollar value of. its scheduled investments.

The lion's share of the funds will go to MRO facilities for. LEAP engines, which power Airplane and Boeing narrowbody aircraft. The company co-produces the engine type with France's Safran. through their CFM International joint endeavor.

Our consumers are experiencing strong air travel need,. stated Russell Stokes, head of GE Aerospace's business engines. and services.

We are investing ... so we can satisfy their growing needs and. keep their aircrafts flying safely and dependably, he stated in a. statement.

After the pandemic, turn-around times at engine repair shops. rose by 35% for legacy engines and more than 150% for. new-generation engines, according to seeking advice from firm Bain &&. Business. Usually, it is taking two to three months for. airlines simply to protect an MRO slot, the firm said.

GE Aerospace, which became an independent company this year,. has a dominant share in the engine market for narrowbody jets. and enjoys a strong position in widebodies. More than 70% of its. business engine earnings comes from parts and services.

The business said it will spend $250 million this year on. upgrades. It will open a center in September near Cincinnati,. Ohio that will be geared up with a technology to identify chemical. abnormalities in metal parts that is likewise utilized to recognize forged. art work.

(source: Reuters)