Airfinance Journal Roundtable Summit
The Future of Engine Technology Scott Welsh Services Marketing Manager GE Aviation
Expanded GE Aviation portfolio … (’07 Rev $, in billions)
Engines & Services
Commercial Engines
Commercial Engine Services
Military Engines & Services
$4.6
$6.9
$3.5
–a)
Systems Digital Systems
Electrical Power
Mechanical Systems
$1.3
Unison Engine Components
$0.6
A world leader in aviation technology (a- Includes GE’s 50% of CFM (50/50 JV between GE and Snecma GE Proprietary Information
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Integrating engines and systems to deliver greater customer value Primary Flight Control Actuators
Empennage Components
Power Generation
Power Generation
Examples: Enhanced Airborne Flight Recorder
Remote Input/Output
High Lift Systems
Nose Gear Steering System
Fuel Systems Airframe Components
Common Core System Landing Gear Actuation System GEnx engines
Highlift Actuation System
Primary Flight Control Actuators
Remote Data Concentrators Doors and Door Actuators
Power Generation Environmental Control
Integrated Avionics Flight Management Data Management Flight Data Recorder Displays
Wing Structures
Fuel Systems
Power Distribution Structures
Nose Landing Gear Steering, Actuation and Control
Doors and Door Actuators Utilities Management Wing Structures Landing gear actuation and Control
GE Proprietary Information
Flying Control Surfaces
Thrust Reverser and Cowl Opening Actuation System Engine Actuation
Primary Flight Control Actuators
Engine Nacelles
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Delivering reliability every day …
Every two seconds a GE or CFM powered aircraft is taking off somewhere around the world. CFM International is 50/50 joint venture with Snecma (SAFRAN Group)
GE Proprietary Information
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Installed base growing … 8% CAGR Engines in service
35,600 71%
Portion of worldwide jet fleet
27,500 64%
8,100 31%
1995
13,100 43%
EA
GE
18,500 55%
CFM Airbus CFM* Boeing
2000
2005
2010
2015
CFM, CFM56, and the CFM logo are trademarks of CFM International, a 50/50 joint company between Snecma and General Electric Company
GE Proprietary Information
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… and beyond industry expectations Cumulative change
• GE and CFM engines … 700 million flight hours and growing
(Index vs. base)
2X
105% increase
• Increasing departures … decreasing events
(Cumulative averages)
Base
Jan - 9 7
Jan - 9 9
Jan - 0 1
Jan - 0 3
Jan - 0 5
55% decrease -0.5X
CFM, CFM56, and the CFM logo are trademarks of CFM International, a 50/50 joint company between Snecma and General Electric Company
GE Proprietary Information
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Future industry trends
Aviation - a global economic driver
Contributions
A robust industry
$3 trillion
30MM departures
8% of World GDP
2.2B passengers
29 million global jobs
$600B backlog
GE Proprietary Information
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Jet Fuel / bbl
Fuel prices continue to rise – the growth segment of operating cost
Cash AROC
'00
$35 '01
'02
'03
Others 59%
Fuel 12% Mx 5% Labor 24%
Source: IATA GE Proprietary Information
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Jet Fuel / bbl
Fuel prices continue to rise – the growth segment of operating cost
Cash AROC
'00
$119
$35 '01
'02
'03
Others 59%
Fuel 12%
'04
'05
'06
'07
Others 45% Fuel 28%
Mx 5% Labor 24%
'08 YTD
Labor 22%
Mx 5%
Source: IATA GE Proprietary Information
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Jet Fuel / bbl
Fuel prices, plus future emissions charge accelerating operating cost growth
Cash AROC
'00
?
$119
$35 '01
'02
'03
Others 59%
Fuel 12%
'04
'05
'06
'07
Labor 22%
'09E
'10E
'11E
'12E Emissions
5%
Others 32%
Others 45% Fuel 28%
Mx 5% Labor 24%
'08 YTD
Mx 5%
Source: IATA GE Proprietary Information
Labor 20% Mx 5%
Fuel 40%
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Commercial aviation making great efficiency gains Baseline
Relative fuel consumption
100%
80%
Engine
-40% 60%
Aircraft
-70% 40%
20% 1950
1960
1970
1980
1990
2000
Model Introduction GE Proprietary Information
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Traffic growth exceeds progress, increasing aviation emissions 100%
Relative fuel consumption
Traffic
8.5x 80%
60%
40%
Baseline 20% 1950
1960
1970
1980
1990
2000
Model Introduction Source: GE Analysis GE Proprietary Information
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Aviation only 2% of the CO2 contributor Aviation
Road transport
Other transport
18%
4%
Other sectors
10%
2% Industry
18%
Public electricity and heat production
Energy
5%
35%
Residential
8%
Global CO2 Source: IEA 2002 data& IATA GE Proprietary Information
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Air Traffic Control challenges U.S. Congestion Cost
In the U.S. One-quarter flights
delayed in ’07
$20B
$66 cost per minute
In Europe
$9B
Delays across 35 ATCs 2007
Cost $4.4B in 2007
GE Proprietary Information
2020
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Performance based navigation – enhancements to existing system Reduced workload Fuel savings Lower noise Increased airport
capacity
Atlanta Hartsfield
Source: FAA, IATA, GE Aviation Systems GE Proprietary Information
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Performance based navigation – enhancements to existing system Reduced workload Fuel savings Lower noise Increased airport
capacity
Atlanta Hartsfield
Source: FAA, IATA, GE Aviation Systems GE Proprietary Information
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Future support trends
Global fleet redistribution – a growing support challenge Growth in passenger airlines
40% operator increase
864
most with 10 aircraft or less
606
Varied airline technical expertise increased reliance on OEM Alternate material choices technical limits on ability to provide support
470
497
539
603
383
429
223
224
239
239
246
261
'01
'02
'03
'04
'05
'06
potential residual value impact
GE Proprietary Information
26:1 LEAP 23:1 12:1 Pressure Ratio
GEnx
GE90 80’s
CF6
90’s
00’s
Next
CFM International is 50/50 joint venture with Snecma (SAFRAN Group) LEAP is a registered trademark of CFM International
GE Proprietary Information
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Major technology enablers - Materials Periodic Table
GE36 UDF unducted, composite blades
80’s
GE90 composite fan blade
GEnx composite fan blade and case
90’s
00’s
GE Proprietary Information
High temperature composites (CMCs)
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Major technology enablers - Combustion
CF6 Low Emissions Combustor (LEC)
NOx
CO
CFM/GE90 Dual-Annular Combustor (DAC) Twin-Annular Pre-Swirl
GE90-115B DAC TAPS
GEnx TAPS LEAP56 Next-gen TAPS
80’s
90’s
00’s
Next
CFM International is 50/50 joint venture with Snecma (SAFRAN Group) LEAP56 is a registered trademark of CFM International
GE Proprietary Information
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Engine architecture options Leading-Edge Aviation Propulsion (LEAP)
% Noise Reduction
60%
Advanced Turbofan Proven design Improved reliability
Advanced turbofan
40
20
Open Rotor CFM56-7*
0 Base
5
10
15
20
% Improved Fuel Burn
25
30%
Open Rotor Game changing performance Time to mature technologies CFM International is 50/50 joint venture with Snecma (SAFRAN Group) LEAP is a registered trademark of CFM International
GE Proprietary Information
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GE Aviation – powering the future Significant trends affecting the aviation industry Continuous investment in technology, for today and in the future Committed to the safe redistribution of our fleet, and protecting your asset value Focused on exceeding customer expectations creating clean, quiet, efficient, and affordable products
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