GE Aviation Wins $13B Emirates Contract
Emirates airline has signed a 12-year agreement with General Electric (GE) for the maintenance, repair and overhaul of its new GE9 engines.
The $13 billion (Dh47.7 billion) OnPoint contract is for the engines that will power the airline's 150 Boeing 777X aircraft that it is buying from Boeing for $56 billion.
The contract was announced by GE in a statement on day one of the Farnborough Air Show in the United Kingdom.
Last November, Emirates announced an order at the Dubai Airshow for the Boeing aircraft to be powered by 300 GE9X engines valued at more than $15 billion at list prices.
GE Aviation said that yesterday's agreement makes the entire deal its largest ever commercial jet engine award from an airline.
"The relationship between GE and Emirates continues to grow with the recent GE9X commitments.
"The OnPoint solution agreement will allow us to provide comprehensive MRO support along with OEM parts and workscopes to ensure the engines remain in peak operating condition," stated David Joyce, president and CEO of GE Aviation.
GE's OnPoint solutions are customised service agreements that are tailored to the operational and financial needs of the airline. According to GE, the agreements reduce the cost of ownership.
Yesterday's deal follows an announcement last week that Emirates had finalised its order for the 150 777X's with Boeing. Emirates has purchasing rights for an additional 50 aircraft, which would take the $56 billion aircraft order to $75 billion at list prices. Emirates negotiated the Dubai Airshow deal for the 777X's with Qatar Airways.
Emirates has 208 Boeing 777s pending delivery.
The 777x is the latest variant of Boeing's best-selling wide body aircraft.
Last month. Emirates cancelled its $16 billion list price order for 70 A350 aircraft with European manufacturer Airbus.