British Airways Orders First GEnx Engines for New 787 Dreamliners

Rhea-AI Summary

GE Aerospace has secured a significant order from International Airlines Group (IAG) for GEnx engines to power six new 787 Dreamliners for British Airways. This marks the first introduction of the GEnx engine into British Airways' fleet. The GEnx-1B engine, which powers two-thirds of 787 aircraft in service, offers a 1.4% fuel burn savings compared to competitors and can operate on approved Sustainable Aviation Fuel (SAF) blends.

The GEnx engine family has accumulated over 56 million flight hours since 2011 and is GE Aerospace's fastest-selling high-thrust engine, with nearly 3,000 engines in service and on backlog. This order reinforces the strong relationship between GE Aerospace and British Airways, which already operates aircraft powered by GE90, CF34, and LEAP engines.

Positive

• Secured order for GEnx engines to power six new 787 Dreamliners for British Airways
• GEnx-1B offers 1.4% fuel burn savings compared to competitors
• GEnx engine family has over 56 million flight hours since 2011
• Nearly 3,000 GEnx engines in service and on backlog

Negative

• None.

Insights

Aviation Financial Analyst

This purchase by British Airways (BA) signifies a strategic investment in fuel efficiency and operational reliability. The GEnx engines are noted for their improved fuel burn rate, which can translate into significant cost savings for BA over time. Furthermore, relying on GE Aerospace, with which they have a long-standing relationship, reduces the operational risk associated with integrating new technology. This deal aligns with BA's broader strategy of modernizing its fleet to remain competitive and should enhance its profitability by lowering operating costs.

Market Research Analyst

The introduction of GEnx engines into BA's fleet strengthens GE Aerospace's position in the market, showcasing the continued demand for their products. Fuel efficiency has become increasingly important in the aviation industry due to rising fuel costs and environmental regulations. This transaction highlights the trend toward sustainable aviation fuel (SAF) readiness, a growing necessity. For investors, this deal signifies confidence in GE Aerospace's technology and could positively impact its stock value as it solidifies its market share with a premium airline like BA.

Sustainability Expert

The capability of GEnx engines to operate on Sustainable Aviation Fuel (SAF) aligns with global aviation's shift toward sustainability. By opting for engines compatible with SAF, BA is future-proofing its fleet against increasingly stringent environmental regulations. This decision not only improves BA's environmental footprint but also positions it favorably with eco-conscious investors and passengers. As the aviation industry faces pressure to reduce carbon emissions, this move reinforces BA's commitment to sustainability, potentially enhancing its brand reputation.

FARNBOROUGH, England, July 22, 2024 /PRNewswire/ -- GE Aerospace (NYSE: GE) announced today that International Airlines Group (IAG) has committed to purchasing GEnx engines to power six new 787 Dreamliners for British Airways – the first introduction of this engine into their fleet.

"British Airways was the launch customer for the highly successful GE90 engine. Bringing the GEnx into their 787 fleet represents another important milestone in our relationship," said Russell Stokes, President and CEO, Commercial Engines and Services, GE Aerospace. 

The GEnx-1B powers two out of every three 787 aircraft in service. The engine also provides a 1.4 percent fuel burn savings for the typical 787 mission compared to its competition. Like all GE Aerospace engines, the GEnx can operate on approved Sustainable Aviation Fuel (SAF) blends today.

"The GEnx engine is performing well with millions of reliable flight hours under wing and proven fuel efficiency and economics," IAG said. "This selection by IAG and British Airways affirms the confidence we have in the GEnx engine and 787 aircraft combination." 

The GEnx engine family has more than 56 million flight hours since entry into service in 2011 and is the fastest-selling, high-thrust engine in GE Aerospace history with nearly 3,000 engines in service and on backlog, including spares. 

British Airways currently operates aircraft powered by GE Aerospace's GE90, CF34 and LEAP* engines.

*CFM is a 50/50 joint venture between GE Aerospace and Safran Aircraft Engines 

About GE Aerospace
GE Aerospace (NYSE:GE) is a global aerospace propulsion, services, and systems leader with an installed base of approximately 44,000 commercial and 26,000 military aircraft engines. With a global team of 52,000 employees building on more than a century of innovation and learning, GE Aerospace is committed to inventing the future of flight, lifting people up, and bringing them home safely. Learn more about how GE Aerospace and its partners are defining flight for today, tomorrow and the future at www.geaerospace.com. 

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SOURCE GE Aerospace

FAQ

What is the significance of British Airways ordering GEnx engines for their 787 Dreamliners?

This order marks the first introduction of GEnx engines into British Airways' fleet, expanding GE's relationship with the airline and demonstrating confidence in the engine's performance and efficiency.

How does the GEnx-1B engine compare to its competitors for the 787 Dreamliner?

The GEnx-1B engine offers a 1.4% fuel burn savings for typical 787 missions compared to its competition, providing better efficiency and economics.

Can GE's GEnx engines operate on sustainable aviation fuel (SAF)?

Yes, like all GE Aerospace engines, the GEnx can operate on approved Sustainable Aviation Fuel (SAF) blends today, supporting airlines' sustainability efforts.

How many GEnx engines are currently in service or on backlog for GE (NYSE: GE)?

GE Aerospace reports nearly 3,000 GEnx engines are in service and on backlog, including spares, making it the fastest-selling high-thrust engine in the company's history.