GE venture to build more Airbus engines to help offset Max shutdown
General Electric and Safran have struck a deal to increase production of engines for Airbus' rival to the 737 MAX, helping the pair deal with Boeing’s production halt of its embattled plane, according to people familiar with the matter. The agreement—made via the GE-Safran joint venture CFM International—will increase its output of LEAP 1A engines, 1 of 2 turbine options for the Airbus A320neo, to around 58% of total deliveries, the people said. Pratt & Whitney is due to slow output to about 42%, the people added. The timing of the deal is crucial for GE. The extended MAX grounding coupled with the production halt ordered this month have already strained GE finances, cutting cash flow by as much as US$1.4b this year as factories produce fewer engines and GE can’t get fully paid for them. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-12-23/general/ge-venture-to-build-more-airbus-engines-to-help-offset-max-shutdown
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GE venture to build more Airbus engines to help offset Max shutdown
General Electric and Safran have struck a deal to increase production of engines for Airbus' rival to the 737 MAX, helping the pair deal with Boeing’s production halt of its embattled plane, according to people familiar with the matter. The agreement—made via the GE-Safran joint venture CFM International—will increase its output of LEAP 1A engines, 1 of 2 turbine options for the Airbus A320neo, to around 58% of total deliveries, the people said. Pratt & Whitney is due to slow output to about 42%, the people added. The timing of the deal is crucial for GE. The extended MAX grounding coupled with the production halt ordered this month have already strained GE finances, cutting cash flow by as much as US$1.4b this year as factories produce fewer engines and GE can’t get fully paid for them. <br/>
