BOSTON, Mass., - GE, a longtime aerospace supplier and major buyer of commercial planes, warned Wednesday that the grounding could drain as much as $1.4 billion from its cash flow this year as its factories produce fewer engines for the aircraft and cannot get fully paid for them. The MAX jet is powered exclusively by LEAP engines made by GE in partnership with France’s Safran SA, reports Thomas Gryta for the Wall Street Journal. Continue reading original article
The Intelligent Aerospace take:
August 1, 2019-GE's aviation unit is its largest by revenue, and Gryta notes that it has "propped up" other arms that aren't doing as well financially. GE's LEAP engine is used on different passenger jets, including aircraft made by Boeing's chief rival Airbus, though GE has slowed production of the jet engine. Likewise, Boeing itself has indicated it may slow or even halt production of the MAX line if it isn't returned to service later this year. With dozens of international manufacturers producing myriad components for the MAX line, a return to service would be assuredly welcomed by industry players large and small.
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Jamie Whitney, Associate Editor
Intelligent Aerospace
