Lift off with new engine deal

British Airways PLC 08 December 2005 Lift off with new engine deal British Airways has agreed a £1.5 billion engine maintenance contract with General Electric Company (GE), one of the largest engineering contracts awarded in the airline's history. The ten-year agreement will see GE responsible for the maintenance, overhaul and repair for the airline's RB211-524 and CFM56 engines. The Rolls-Royce RB211 engines power British Airways 57 Boeing 747s and 21 767s. The CFM56 engines power the airline's 32 Boeing 737s and ten of its 26 Airbus A320 aircraft. The CFM56 engines are produced by CFM International, a GE / Snecma 50/50 joint company. The new agreement replaces an existing contract with GE, which was due to expire at the end of this year. The agreement could see GE carry out more than 800 overhauls or repairs on British Airways' fleet of RB211 and CFM56-3/5 engines. All of the work will be performed at GE's engine maintenance facility in Nantgarw, Wales, which employs more than 850 people. Garry Copeland, general manager engineering services at British Airways, said: ' In signing this agreement GE has committed to delivering a quality service providing safe and secure operations, on time and at a price which meets our business need. 'We have every confidence that the GE underlying philosophy of continuous improvement will deliver the high level of service British Airways requires for the future.' Brad Mottier, vice president and general manager of engine services operation at GE - Aviation said: 'We have a long-standing relationship with British Airways. The agreement shows the continued confidence that the airline has in our high-quality capabilities and will help us to maintain a steady flow of work at our Wales facility.' The signing of the agreement follows a two-year review by British Airways of its engine maintenance arrangements. GE was selected after an online competitive bidding process. The Nantgarw facility performs maintenance, repair and overhaul work on GE90, CFM56-3, CFM56-5, CFM56-7, RB211-524 and RB211-535 engine types. Ends 8 December, 2005 139/JM/2005 For more information: British Airways Press Office 0208 738 5100 This information is provided by RNS The company news service from the London Stock Exchange

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