EVENDALE - GE Aircraft Engines in 1997 is experiencing a very dynamic year as the aviation industry rebounds. Commercial engine orders increased sharply in 1996, ensuring much higher engine production levels later this decade. GE Aircraft Engines and CFM International, a 50/50 joint company of GE and Snecma of France, continue to win the majority of these commercial engine orders.
Driving future engine deliveries is the fantastic success of CFM International (CFMI). 1996 proved to be the company's most successful year ever as it logged orders for 1,280 CFM56 engines valued at $5.5 billion. These CFMI engine orders, doubled those received in 1995, represent 61 percent of all engine orders placed last year for commercial aircraft, with a capacity of 100 passengers or more, including aircraft for which these engines are not offered.
The new CFM56-7 engine for the Boeing Next-Generation 737 aircraft is a model for customer value. The CFM56-7 sells at a price comparable to its predecessor, the CFM56-3, but provides 10 percent more thrust, improved fuel consumption, a 15 percent reduction in maintenance costs, and 20 percent longer time on wing. The first CFM56-7-powered 737-700 took to the air for the first time February 9, paving the way for aircraft entry into service with Southwest Airlines in October of this year. The CFM56-7 is the exclusive powerplant for the Next-Generation 737-600/700/800 series.
Future success in the jet engine industry is dependent upon improving customer profitability. For example, the GE90 recently completed its first year in revenue service with no in-flight disruptions and industry-leading dispatch reliability powering the Boeing 777. Launch customer British Airways describes the GE90 on its 777 aircraft as the most successful introduction ever of a new engine into its fleet.
In February, the GE90-90B-powered Boeing 777-200 IGW (Increased Gross Weight) engine/aircraft combination was certified, granted ETOPS, and entered service with British Airways and China Southern. The -90B is the first engine to enter service on the -200 IGW. It is a derated version of the 92,000-pound-thrust GE90-92B, the highest thrust engine ever certified by the FAA, the JAA, and China's Civil Aviation Authority.
The growing jet engine fleet in operation worldwide is driving the growth of the engine services business. Two years ago, GEAE integrated its engine overhaul, repair, and spare parts functions into one operation, GE Engine Services, Inc. which is now the world's largest integrated jet engine maintenance company.
In 1996, GE Engine Services received orders worth more than $2.6 billion, representing a 44 percent order increase over 1995. In addition, during 1996, GE won multi-year contracts worth more than $4.2 billion - more than three times the value of such contracts signed in 1995.
With more than 5,000 F404 and F110 engines in service worldwide, GE Aircraft Engines' best-selling F404 and F110 fighter engine families continue to expand their worldwide presence and field experience. The F110 engine family, which powers more than 70 percent of the world's F-16C/Ds, was selected in 1996 to power 21 new F-16s for the Egyptian Air Force as part of its Peace Vector V modernization program. The F110 also powers F-16s for the governments of Bahrain, Egypt, Greece, Israel, Turkey and the United States. The F404-powered F/A-18 has been selected by, or is in service with, the governments of Australia, Canada, Kuwait, Spain, Switzerland, Finland, Malaysia, and Thailand.