GE Aviation Will Build 5.5% More Aircraft Engines In 2014 Than It Did This Year As Boeing And Airbus Step Up Production

on June 13 2013 11:02 AM
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    General Electric - a diversified industrial giant. Reuters
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    Buildings are seen reflected on the GE Building also known as 30 Rockefeller Plaza, in New York, January 22, 2010. Reuters
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General Electric Company (NYSE:GE) has said its aviation unit will produce 5.5 percent more aircraft engines next year compared to 2013 as Boeing Company (NYSE:BA) and EADS NV (EPA:EAD), maker of Airbus planes, step up aircraft production.

In a forecast obtained by Reuters and expected to be released publicly at next week’s Paris Air Show, GE said it produced 3,300 engines last year and will produced 3,600 engine this year and 3,800 engines in 2014.

GE Aviation makes its plane engines through partnerships with subsidiaries of Paris-based Safran SA (EPA:SAF) and United Technologies Corporation (NYSE:UTX) of Hartford, Conn. GE and Britain’s Rolls-Royce Holding PLC (LON:RR) make engines for the Boeing 787, while GE makes engines by itself for Boeing’s 777 and the 777X due out by 2020.

Engine Alliance, the UTX subsidiary, supplies engines for the Airbus A380 mega plane. On Tuesday, Boeing said the global carrier industry will buy 35,280 aircraft over the next two decades, growing at a rate of about 5 percent a year. GE said 13 percent of next year’s engine production will be for new products.

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