the future of engine technology industry... · relative fuel consumption engine ... enhancements to...

Scott WelshServices Marketing ManagerGE Aviation

The Future of Engine Technology

Airfinance Journal Roundtable Summit

2GE Aviation

Airfinance Journal SummitGE Proprietary Information

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

3GE Aviation


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


EmpennageComponents

Landing gear actuationand Control

High Lift Systems

Engine Actuation

Engine Nacelles


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

4GE Aviation


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)

4GE Aviation

International Society of Transport Aircraft TradingGE Proprietary Information

5GE Aviation


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

6GE Aviation


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)

Future industry trends

8GE Aviation


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

8GE Aviation


9GE Aviation


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

9GE Aviation

International Society of Transport Aircraft Trading

Cash AROC

Cash AROC

$35

Fuel

12%

Labor

24%

Others

59%

Mx 5%

Jet Fuel / bbl

Jet Fuel / bbl

'00 '01 '02 '03

Source: IATAGE Proprietary Information

10GE Aviation


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

10GE Aviation


Cash AROC

Cash AROC

Fuel

28%Labor

22%

Others

45%

Mx

5%

$119

$35

Fuel

12%

Labor

24%

Others

59%

Mx 5%

Jet Fuel / bbl

Jet Fuel / bbl

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


11GE Aviation


Fuel prices, plus future emissions chargeaccelerating operating cost growth

Cash AROC

Cash AROC

Fuel

28%Labor

22%

Others

45%

Mx

5%

Labor

20%

Others

32%

Emissions

5%

Fuel

40%

Mx

5%

$119

$35

Fuel

12%

Labor

24%

Others

59%

Mx 5%

Jet Fuel / bbl

Jet Fuel / bbl

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

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

11GE Aviation


??


12GE Aviation


Aircraft

-70%

Commercial aviation making great efficiency gains

1950 1960 1970 1980 1990 2000

Model Introduction

20%

40%

60%

80%

100%

Relative fuel consumption

Engine

-40%

Baseline

13GE Aviation


1950 1960 1970 1980 1990 2000

Model Introduction

20%

40%

60%

80%

100%


Traffic

8.5x

Traffic growth exceeds progress, increasing aviation emissions

Baseline

Source: GE Analysis

14GE Aviation


Public

electricity and heat production

35%Residential

8%

Energy

5%

Industry

18%

Aviation

2%

Roadtransport

18%

Othertransport

4% Othersectors

10%

Global CO2

14GE Aviation


Aviation only 2% of the CO2 contributor

Source: IEA 2002 data& IATAGE Proprietary Information

15GE Aviation


Air Traffic Control challenges

In the U.S.

� One-quarter flights delayed in ’07

� $66 cost per minute

In Europe

� Delays across 35 ATCs

� Cost $4.4B in 2007

U.S. Congestion Cost

$9B

$20B

2007 2020

16GE Aviation


Performance based navigation –enhancements to existing system

� Reduced workload

� Fuel savings

� Lower noise

� Increased airport capacity

Source: FAA, IATA, GE Aviation Systems

Atlanta Hartsfield

17GE Aviation


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

19GE Aviation


Global fleet redistribution –a growing support challenge

223 224 239 239 246 261

383 429 470 497 539603

'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

20GE Aviation


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


21GE Aviation


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


22GE Aviation


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

Multiple alternate material

providers &configurations


23GE Aviation


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

25GE Aviation


Efficiency gains in engine technology

-32%Since 1960

Long range application

High cycle application

40%

50%

60%

70%

80%


1980

CF6CFM56-3

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

26GE Aviation



-32%Since 1960

CFM56-5/7

GE90



40%

50%

60%

70%

80%


1980 1990 2000

CF6CFM56-3

-5% to-8%

Since 1980


27GE Aviation



-32%Since 1960

2010

CFM56-5/7

GEnx

TECHInsertTM

GE90



40%

50%

60%

70%

80%


1980 1990 2000

CF6CFM56-3

-5% to-8%

Since 1980

-6% to-15%Since 1980

TECHInsertTM


28GE Aviation


2020 2030


-32%Since 1960

2010

CFM56-5/7 TECHInsertTM

GEnx

TECHInsertTM

GE90



40%

50%

60%

70%

80%


1980 1990 2000

CF6CFM56-3

-5% to-8%

Since 1980

-6% to-15%Since 1980

-15% to-25%Since 2008

LEAPTM


29GE Aviation


Cleaner, quieter, faster, affordable

Fuel consumption

Emissions

Noise

Cost of ownership

Reliability

a product of

ecomaginationsm

30GE Aviation


Commitment to technology investment

Technology focus areas

� Aerodynamics

� Materials

� Combustion

GE Aviation R&D investment

’05

’06

’07

$1.1B

$1.2B

$1.3B

31GE Aviation


GE90

Major technology enablers - Aerodynamics

GEnx

CF6

12:1PressureRatio

23:1

>26:1

3-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

32GE Aviation


Major technology enablers -Materials

GE36 UDF

unducted, composite blades

80’s 90’s

GE90compositefan blade

00’s

GEnxcompositefan bladeand case

Next

High temperature composites (CMCs)

Periodic Table

33GE Aviation


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

34GE Aviation


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

% Improved Fuel Burn

Open Rotor% Noise Reduction

15 20 25105Base

CFM56-7*

20

40

60%

Advanced turbofan

0

30%

Advanced Turbofan

� Proven design

� Improved reliability

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

35GE Aviation


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

35GE Aviation


the future of engine technology industry... · relative fuel consumption engine ... enhancements to...

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