GE Aerospace says CPP deal not a blueprint for broader integration
GE•CFM56 retirement outlook
GE expects the retirement rate for aircraft powered by older-generation CFM56 engines to be between 1.5% and 2% this year, down from a previous estimate of 2% to 3%.
Engine deliveries and airline demand
- GEnx engine deliveries rose 50% from a year earlier in the second quarter, with GE expecting stronger year-on-year and sequential growth in the third quarter, Ghai said
- Airlines are not altering their long-term fleet plans, Ghai said
- He said airlines were being more deliberate about fleet decisions after their experience during the pandemic, when quickly cutting capacity created challenges in maintaining market share
What GE expects from the CPP acquisition
- Ghai called the CPP deal a "unique situation"
- GE believes it can improve CPP's delivery performance, expand production and speed up the introduction of new airfoil technology
- "That's not to say that we're going to go vertically integrate every single part of our value stream," Ghai told a Morgan Stanley conference
- Industry still needs to add manufacturing capacity in several areas, Ghai said, adding that the capacity squeeze was not going away quickly
