CFM International, based in Evendale, a joint venture between General Electric Co. (GE) and Snecma of France, has won an order valued at $700 million from Virgin Blue, a low-cost airline based in Australia .
The order involves delivery of 50 Boeing 737 aircrafts, powered by CFM’s CFM56-7B engines. Virgin Blue also has an option to order for 25 additional aircrafts. The engines to be delivered are an updated version of the current CFM 56-7B, with a 2% improvement in fuel consumption.
Virgin Blue currently owns a fleet of 83 aircrafts. Deliveries of the new aircrafts are scheduled to begin in mid-2011.
GE has one of the best infrastructure franchises worldwide with solid organic growth rates, exposure to favorable secular trends and a large installed base supporting a growing annuity-like service business. Infrastructure businesses from GE are helping build the energy, health, transportation and technology infrastructure of the new century.
These businesses provide the products and services that help developing regions participate in the global economy, while also helping developed regions upgrade with cleaner, more efficient and better infrastructure technologies.
Financial business at GE offers an array of products and services aimed at enabling commercial businesses, consumers and markets worldwide to build a stronger, financially secure future.
The company has adopted strategic imperatives to strengthen its portfolio by building strong growth platforms and generating cash from low-return businesses. Its focus remains on accelerating organic growth and achieving technical and service excellence, while building enduring customer relationships around the world.
GE has products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products. Since its incorporation in 1892, the company has developed or acquired new technologies and services that have broadened considerably the scope of its activities.
We currently have a Neutral recommendation on GE.
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