Japan Airlines Signs Deal for GEnx to Power New 787s

Rhea-AI Summary

GE Aerospace has secured an order from Japan Airlines for GEnx-1B engines to power up to 20 new Boeing 787-9 Dreamliner aircraft. This deal strengthens the long-standing relationship between the two companies, with Japan Airlines being the launch customer for the GEnx engine. The GEnx engine family has achieved 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.

The GEnx-1B powers two out of every three 787 aircraft in service and can operate on approved Sustainable Aviation Fuel (SAF) blends. Japan Airlines and its subsidiary currently operate a fleet of 53 Boeing 787s powered by GEnx engines, reaching 3 million engine flight hours in early 2024.

Positive

• Secured order for GEnx-1B engines from Japan Airlines for up to 20 new Boeing 787-9 Dreamliners
• GEnx engine family has over 56 million flight hours since 2011
• Nearly 3,000 GEnx engines in service and on backlog
• GEnx-1B powers two out of every three 787 aircraft in service
• Japan Airlines' GEnx-powered 787 fleet reached 3 million engine flight hours in early 2024

Negative

• None.

Insights

Aviation Industry Analyst

Japan Airlines' decision to order GEnx-1B engines from GE Aerospace for its new fleet of 787-9 Dreamliners is a significant move within the aviation industry. The GEnx-1B engine is noted for its fuel efficiency and reliability, important traits given the current emphasis on sustainability and operational efficiency. From an industry perspective, this deal underscores Japan Airlines' commitment to maintaining a state-of-the-art fleet, which can improve their competitive edge.

For GE Aerospace, this deal reaffirms their market dominance in the high-thrust engine segment. The GEnx engine's deployment on two-thirds of the global 787 fleet highlights its operational reliability and market preference. Such endorsements can drive further orders and reinforce GE's market position, benefiting their stock performance in the long term.

In summary, this deal positions both companies favorably, with Japan Airlines enhancing its fleet capabilities and GE Aerospace solidifying its market leadership.

Financial Analyst

From a financial perspective, this deal between Japan Airlines and GE Aerospace is likely to have a positive impact on both companies' financials. For GE Aerospace, securing a significant order for their high-performing GEnx-1B engines could lead to a boost in revenue streams and profitability. Given the engine's reputation and the scale of the order, this deal could also enhance investor confidence in GE Aerospace's commercial engines segment.

For Japan Airlines, investing in the latest and most efficient engines can lead to operational cost savings and improved fuel efficiency over time. This move can enhance their long-term financial stability and performance, particularly in a market that is increasingly focused on sustainability and cost management.

Overall, this agreement is a strategic win for both parties, with potential positive outcomes on their respective financial health and investor perceptions.

Sustainability Expert

This agreement is noteworthy from a sustainability standpoint. The GEnx-1B engines are designed to be more fuel-efficient and capable of operating on Sustainable Aviation Fuel (SAF), aligning with the broader industry push towards greener aviation. Japan Airlines' choice of these engines reflects their commitment to reducing their carbon footprint and enhancing operational efficiency. This move can positively influence their environmental, social and governance (ESG) ratings, which are increasingly important to investors.

GE Aerospace's focus on sustainability, as evidenced by the GEnx engine's capabilities, positions them well in an industry that is rapidly evolving to meet stricter environmental regulations. This deal could serve as a benchmark for other airlines, promoting further adoption of sustainable technologies.

FARNBOROUGH, England, July 22, 2024 /PRNewswire/ -- Following Japan Airlines' agreement with Boeing for up to 20 787-9 Dreamliner aircraft, GE Aerospace (NYSE: GE) today announced an order from the airline for GEnx-1B engines to power the new aircraft.   

"GE Aerospace and Japan Airlines have a long and enduring relationship that stretches back decades, including being the launch customer for the GEnx engine," said Russell Stokes, President and CEO, Commercial Engines and Services, GE Aerospace. "We're honored Japan Airlines continues to place their trust in our products and services with this new order." 

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. 

"As a launch airline for GEnx powered 787 Dreamliner, we are delighted at introducing additional 787s. Since incorporation into our fleet, the GEnx engine has proven to be high performance, reliable and fuel efficient through thousands of flight hours," said Yukio Nakagawa, Executive Officer and Senior Vice President Procurement of Japan Airlines. "The GEnx engine is essential to the expansion of our 787 Dreamliner fleet." 

The GEnx-1B powers two out of every three 787 aircraft in service. Like all GE Aerospace engines, the GEnx can operate on approved Sustainable Aviation Fuel (SAF) blends today. Representing a giant leap forward in propulsion technology, GEnx uses lightweight durable materials and advanced design processes to reduce weight, improve performance, and lower maintenance, making it the best engine choice for long-haul flights.  

Japan Airlines and their subsidiary currently operate a fleet of 53 Boeing 787s powered by the GEnx engine, reaching 3 million engine flight hours in early 2024. The airline is also powered by GE Aerospace's CF6, GE90, CF34 and CFM56* engines.  

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

About GE Aerospace 
GE Aerospace is a world-leading provider of jet engines, components and systems for commercial and military aircraft with a global service network to support these offerings. GE Aerospace and its joint ventures have an installed base of more than 44,000 commercial and 26,000 military aircraft engines, and the business is playing a vital role in shaping the future of flight. 

About Japan Airlines 
Japan Airlines (JAL), Japan's first private aviation company, was established in 1951 and is a member of the oneworld® Alliance. The airline operates a fleet of 227 aircraft (as of March 2024) and began renewing its international long-haul aircraft with the Airbus A350-1000 starting 2023 Winter Schedule. Together with other JAL Group and partner airlines, JAL offers an extensive domestic and international network that serves 384 airports across 64 countries/regions. The airline has received numerous accolades for its exceptional service, including being recognized as a certified 5-Star Airline by Skytrax and being awarded the prestigious "World Class" Airline title by APEX, the Airline Passenger Experience Association. The airline is dedicated to ensuring the highest standards of flight safety and overall service quality, striving to be the most preferred airline by customers worldwide. For details and to learn more, visit JAL's official website at https://www.jal.com/en/.

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SOURCE GE Aerospace

FAQ

What is the recent deal between GE Aerospace and Japan Airlines for GEnx engines?

GE Aerospace has secured an order from Japan Airlines for GEnx-1B engines to power up to 20 new Boeing 787-9 Dreamliner aircraft, announced on July 22, 2024.

How many flight hours has the GEnx engine family accumulated since its entry into service?

The GEnx engine family has accumulated over 56 million flight hours since its entry into service in 2011.

What percentage of Boeing 787 aircraft are powered by GEnx-1B engines?

The GEnx-1B engines power two out of every three Boeing 787 aircraft in service, which is approximately 67%.

Can 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.

How many Boeing 787s powered by GEnx engines does Japan Airlines currently operate?

Japan Airlines and their subsidiary currently operate a fleet of 53 Boeing 787s powered by GEnx engines.