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
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.