Airfinance Journal Roundtable Summit Reverser and Cowl Opening Actuation System Flying Control...

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Samer Dajani Regional Marketing Director GE Aviation The Future of Engine Technology Airfinance Journal Roundtable Summit

Transcript of Airfinance Journal Roundtable Summit Reverser and Cowl Opening Actuation System Flying Control...

Samer DajaniRegional Marketing DirectorGE Aviation

The Future of Engine Technology

Airfinance Journal Roundtable Summit

2GE Aviation

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Expanded GE Aviation portfolio …

$4.6 $6.9 $3.5

(a- Includes GE’s 50% of CFM (50/50 JV between GE and Snecma

Digital Systems Electrical Power Mechanical SystemsUnison Engine Components

$1.3 $0.6

Commercial Engines

Commercial EngineServices

Military Engines & Services

–a)

(’07 Rev $, in billions)

Systems

A world leader in aviation technology

Engines & Services

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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)

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Jan - 9 7 Jan - 9 9 Jan - 0 1 Jan - 0 3 Jan - 0 5

… and beyond industry expectations

• GE and CFM engines … 700 million flight hours and growing

• Increasing departures … decreasing events

CFM, CFM56, and the CFM logo are trademarks of CFM International, a 50/50 joint company between Snecma and General Electric Company

(Cumulative averages)

105% increase

55% decrease

Base

2X

-0.5X

Cumulative change(Index vs. base)

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Installed base growing … 8% CAGR

31%

43%

55%

64%

71%27,500

18,500

13,100

8,100

35,600

1995 2000 2005 2010 2015

EA

Engines in service

CFM*Boeing

GE

Portion of world-wide jet fleet

CFM, CFM56, and the CFM logo are trademarks of CFM International, a 50/50 joint company between Snecma and General Electric Company

CFM Airbus

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Integrating engines and systems to deliver greater customer value

Fuel Systems

Integrated AvionicsFlight ManagementData Management

Flight Data RecorderDisplays

Nose Landing Gear Steering,Actuation and Control

Remote Input/Output

UtilitiesManagement

FuelSystems

Power Generation

Power Generation

Power Generation

Power Distribution

Structures

Doors andDoor Actuators

Wing Structures

Thrust Reverser andCowl OpeningActuation System

Flying ControlSurfaces

Wing Structures

Primary FlightControl Actuators

EnvironmentalControl

Primary FlightControl Actuators

EmpennageComponents

Landing gear actuationand Control

High Lift Systems

Engine Actuation

Engine Nacelles

Primary FlightControl Actuators

AirframeComponents

Doors andDoor Actuators

Examples:Enhanced Airborne Flight Recorder

Nose Gear Steering System

Common Core System

Landing Gear Actuation System

Highlift Actuation System

Remote Data Concentrators

GEnx engines

Future industry trends

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Aviation - a global economic driver

Contributions

$3 trillion

8% of World GDP

29 million global jobs

A robust industry

30MM departures

2.2B passengers

$600B backlog

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Fuel prices continue to rise –the growth segment of operating cost

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Cash

ARO

CCa

sh A

ROC

$35

Fuel12%

Labor24%

Others59%

Mx 5%

Jet F

uel /

bbl

Jet F

uel /

bbl

'00 '01 '02 '03

Source: IATAGE Proprietary Information

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Fuel prices continue to rise –the growth segment of operating cost

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Cash

ARO

CCa

sh A

ROC

Fuel28%

Labor22%

Others45%

Mx5%

$119

$35

Fuel12%

Labor24%

Others59%

Mx 5%

Jet F

uel /

bbl

Jet F

uel /

bbl

'00 '01 '02 '03 '04 '05 '06 '07 '08YTD

Source: IATAGE Proprietary Information

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Fuel prices, plus future emissions chargeaccelerating operating cost growth

Cash

ARO

CCa

sh A

ROC

Fuel28%

Labor22%

Others45%

Mx5%

Labor20%

Others32%

Emissions

5%

Fuel40%

Mx 5%

$119

$35

Fuel12%

Labor24%

Others59%

Mx 5%

Jet F

uel /

bbl

Jet F

uel /

bbl

'00 '01 '02 '03 '04 '05 '06 '07 '08YTD

'09E '10E '11E '12E

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??

Source: IATAGE Proprietary Information

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Aircraft

-70%

Commercial aviation making great efficiency gains

1950 1960 1970 1980 1990 2000

Model Introduction

20%

40%

60%

80%

100%

Rela

tive

fuel

con

sum

ptio

n

Engine

-40%

Baseline

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Public electricity and heat

production35%Residential

8%

Energy5%

Industry18%

Aviation2%

Roadtransport

18%

Othertransport

4% Othersectors10%

Global CO2

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Aviation only 2% of the CO2 contributor

Source: IEA 2002 data& IATAGE Proprietary Information

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1950 1960 1970 1980 1990 2000

Model Introduction

20%

40%

60%

80%

100%

Rela

tive

fuel

con

sum

ptio

n

Traffic

8.5x

Traffic growth exceeds progress, increasing aviation emissions

Baseline

Source: GE Analysis

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Air Traffic Control challenges

In the U.S.One-quarter flights

delayed in ’07

$66 cost per minute

In EuropeDelays across 35 ATCs

Cost $4.4B in 2007

U.S. Congestion Cost

$9B

$20B

2007 2020

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Performance based navigation –enhancements to existing system

Reduced workload

Fuel savings

Lower noise

Increased airport capacity

Source: FAA, IATA, GE Aviation Systems

Atlanta Hartsfield

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Performance based navigation –enhancements to existing system

Reduced workload

Fuel savings

Lower noise

Increased airport capacity

Source: FAA, IATA, GE Aviation Systems

Atlanta Hartsfield

Future support trends

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Global fleet redistribution –a growing support challenge

223 224 239 239 246 261

383 429 470 497 539 603

'01 '02 '03 '04 '05 '06

606

864

Growth in passenger airlines

<10 AC CAGR = 10%

≥ 10 AC CAGR = 3%

40% operator increase

most with 10 aircraft or less

Varied airline technical expertise

increased reliance on OEM

Alternate material choices

technical limits on ability to provide support

potential residual value impact

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The CFM56-3, 170,000,000 flight hours of support experience

CFM International is 50/50 joint venture with Snecma (SAFRAN Group)

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The CFM56-3, 170,000,000 flight hoursof support experience

CFM International is 50/50 joint venture with Snecma (SAFRAN Group)

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The CFM56-3, or is it?another growing support challenge

Multiple alternate material

providers &configurations

CFM International is 50/50 joint venture with Snecma (SAFRAN Group)

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Independent engine survey … asset value

*CFM, CFM56, and the CFM logo are trademarks of CFM International, a 50/50 joint company between Snecma and General Electric Company

Addressing trends with technology

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Efficiency gains in engine technology

-32%Since 1960

Long range application

High cycle application

40%

50%

60%

70%

80%

Rela

tive

fuel

con

sum

ptio

n

1980

CF6CFM56-3

CFM International is 50/50 joint venture with Snecma (SAFRAN Group)TECH Insertion and LEAP are registered trademarks of CFM International

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Efficiency gains in engine technology

-32%Since 1960

CFM56-5/7

GE90

Long range application

High cycle application

40%

50%

60%

70%

80%

Rela

tive

fuel

con

sum

ptio

n

1980 1990 2000

CF6CFM56-3

-5% to-8%

Since 1980

CFM International is 50/50 joint venture with Snecma (SAFRAN Group)TECH Insertion and LEAP are registered trademarks of CFM International

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Efficiency gains in engine technology

-32%Since 1960

2010

CFM56-5/7

GEnx

TECHInsertTM

GE90

Long range application

High cycle application

40%

50%

60%

70%

80%

Rela

tive

fuel

con

sum

ptio

n

1980 1990 2000

CF6CFM56-3

-5% to-8%

Since 1980

-6% to-15%

Since 1980

TECHInsertTM

CFM International is 50/50 joint venture with Snecma (SAFRAN Group)TECH Insertion and LEAP are registered trademarks of CFM International

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2020 2030

Efficiency gains in engine technology

-32%Since 1960

2010

CFM56-5/7 TECHInsertTM

GEnx

TECHInsertTM

GE90

Long range application

High cycle application

40%

50%

60%

70%

80%

Rela

tive

fuel

con

sum

ptio

n

1980 1990 2000

CF6CFM56-3

-5% to-8%

Since 1980

-6% to-15%

Since 1980

-15% to-25%

Since 2008

LEAPTM

CFM International is 50/50 joint venture with Snecma (SAFRAN Group)TECH Insertion and LEAP are registered trademarks of CFM International

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Cleaner, quieter, faster, affordable

Fuel consumption

Emissions

Noise

Cost of ownership

Reliability

a product of

ecomaginationsm

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Commitment to technology investment

Technology focus areas AerodynamicsMaterialsCombustion

GE Aviation R&D investment

’05

’06

’07

$1.1B

$1.2B

$1.3B

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GE90

Major technology enablers - Aerodynamics

GEnx

CF6

12:1Pressure

Ratio

23:1

>26:13-D Aero

LEAP

80’s 90’s 00’s NextCFM International is 50/50 joint venture with Snecma (SAFRAN Group)

LEAP is a registered trademark of CFM International

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Major technology enablers - Materials

GE36 UDFunducted,

composite blades

80’s 90’s

GE90compositefan blade

00’s

GEnxcompositefan bladeand case

Next

High temperature composites

(CMCs)

Periodic Table

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90’s 00’s Next

NOxNOxCOCO

GE90-115BDAC TAPS

Twin-AnnularPre-Swirl

LEAP56Next-gen TAPS

GEnx TAPS

CFM/GE90 Dual-Annular

Combustor (DAC)

CF6 Low Emissions

Combustor (LEC)

Major technology enablers - Combustion

80’sCFM International is 50/50 joint venture with Snecma (SAFRAN Group)

LEAP56 is a registered trademark of CFM International

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Engine architecture options -Leading-Edge Aviation Propulsion (LEAP)

% Improved Fuel Burn

Open Rotor% N

oise

Red

uctio

n

15 20 25105Base

CFM56-7*

20

40

60%

Advanced turbofan

030%

Advanced TurbofanProven designImproved reliability

Open RotorGame changing performanceTime to mature technologies

CFM International is 50/50 joint venture with Snecma (SAFRAN Group)LEAP is a registered trademark of CFM International

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Reinvesting technology in today’s fleet

00’s

Engine Technology

80’s

90’s

Systems Technology

Flight deck/FMSRetrofit

Aero & MaterialUpgrades

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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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