The Future of Engine Technology

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Jodie Casey
5 years ago
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1 Airfinance Journal Roundtable Summit The Future of Engine Technology Samer Dajani Regional Marketing Director

2 Expanded portfolio ( 07 Rev $, in billions) Commercial Engines Engines & Services Commercial Engine Services Military Engines & Services a) $4.6 $6.9 $3.5 Systems Digital Systems Electrical Power Mechanical Systems Unison Engine Components $1.3 $0.6 A world leader in aviation technology (a- Includes GE s 50% of CFM (50/50 JV between GE and Snecma 2

3 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) 3 International Society of Airfinance Transport Journal Aircraft Summit Trading

4 and beyond industry expectations GE and CFM engines 700 million flight hours and growing 2X Cumulative change (Index vs. base) 105% increase Increasing departures decreasing events Base -0.5X (Cumulative averages) Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 55% decrease CFM, CFM56, and the CFM logo are trademarks of CFM International, a 50/50 joint company between Snecma and General Electric Company 4

5 Installed base growing 8% CAGR Engines in service Portion of worldwide jet fleet 8,100 31% 13,100 43% 18,500 55% 27,500 64% 35,600 71% GE CFM Airbus CFM* Boeing EA CFM, CFM56, and the CFM logo are trademarks of CFM International, a 50/50 joint company between Snecma and General Electric Company 5

Integrating engines and systems to deliver greater customer value Examples: Enhanced Airborne Flight Recorder Nose Gear Steering System Common Core System Landing Gear Actuation System Highlift

6 Integrating engines and systems to deliver greater customer value Examples: Enhanced Airborne Flight Recorder Nose Gear Steering System Common Core System Landing Gear Actuation System Highlift Actuation System Remote Data Concentrators Integrated Avionics Flight Management Data Management Flight Data Recorder Displays Remote Input/Output GEnx engines Doors and Door Actuators Power Generation High Lift Systems Fuel Systems Power Generation Airframe Components Empennage Components Power Generation Environmental Control Primary Flight Control Actuators Primary Flight Control Actuators Wing Structures Structures Nose Landing Gear Steering, Actuation and Control Power Distribution Doors and Door Actuators Utilities Management Wing Structures Landing gear actuation and Control Fuel Systems Thrust Reverser and Cowl Opening Actuation System Engine Actuation Engine Nacelles Flying Control Surfaces Primary Flight Control Actuators 6

7 Future industry trends

8 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 8 International Society of Airfinance Transport Journal Aircraft Summit Trading

9 Fuel prices continue to rise the growth segment of operating cost Jet Fuel / bbl $35 '00 '01 '02 '03 Cash AROC Others 59% Labor 24% Fuel 12% Mx 5% Source: IATA 9 International Society of Airfinance Transport Journal Aircraft Summit Trading

10 Fuel prices continue to rise the growth segment of operating cost Jet Fuel / bbl $35 $119 Cash AROC '00 '01 '02 '03 '04 '05 '06 '07 '08 YTD Others 59% Labor 24% Fuel 12% Mx 5% Others 45% Labor 22% Mx 5% Fuel 28% Source: IATA 10 International Society of Airfinance Transport Journal Aircraft Summit Trading

11 Fuel prices, plus future emissions charge accelerating operating cost growth Jet Fuel / bbl $35 $119? Cash AROC '00 '01 '02 '03 '04 '05 '06 '07 '08 YTD Others 59% Labor 24% Fuel 12% Mx 5% Others 45% Labor 22% Mx 5% Fuel 28% '09E '10E '11E '12E Others 32% Labor 20% Mx 5% Fuel 40% Emissions 5% Source: IATA 11 International Society of Airfinance Transport Journal Aircraft Summit Trading

12 Commercial aviation making great efficiency gains 100% Baseline Relative fuel consumption 80% 60% 40% Aircraft -70% Engine -40% 20% Model Introduction 12

Aviation only 2% of the CO 2 contributor Aviation 2% Road transport 18% Other transport 4% Other sectors 10% Industry 18% Energy 5% Residential 8% Public

13 Aviation only 2% of the CO 2 contributor Aviation 2% Road transport 18% Other transport 4% Other sectors 10% Industry 18% Energy 5% Residential 8% Public electricity and heat production 35% Global CO 2 Source: IEA 2002 data& IATA 13 International Society of Airfinance Transport Journal Aircraft Summit Trading

14 Traffic growth exceeds progress, increasing aviation emissions Relative fuel consumption 100% 80% 60% 40% 20% Model Introduction Source: GE Analysis Traffic 8.5x Baseline 14

15 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 $20B $9B

16 Performance based navigation enhancements to existing system Reduced workload Fuel savings Lower noise Increased airport capacity Atlanta Hartsfield Source: FAA, IATA, Systems 16

17 Performance based navigation enhancements to existing system Reduced workload Fuel savings Lower noise Increased airport capacity Atlanta Hartsfield Source: FAA, IATA, Systems 17

18 Future support trends

19 Global fleet redistribution a growing support challenge 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 Growth in passenger airlines '01 '02 '03 '04 '05 '06 <10 AC CAGR = 10% 10 AC CAGR = 3% 19

20 The CFM56-3, 170,000,000 flight hours of support experience CFM International is 50/50 joint venture with Snecma (SAFRAN Group) 20

21 The CFM56-3, 170,000,000 flight hours of support experience CFM International is 50/50 joint venture with Snecma (SAFRAN Group) 21

22 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) 22

23 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 23

24 Addressing trends with technology

25 Efficiency gains in engine technology Relative fuel consumption 80% 70% 60% 50% 40% -32% Since 1960 CF6 CFM Long range application High cycle application CFM International is 50/50 joint venture with Snecma (SAFRAN Group) TECH Insertion and LEAP are registered trademarks of CFM International 25

26 Efficiency gains in engine technology Relative fuel consumption 80% 70% 60% 50% 40% -32% Since 1960 CF6 CFM56-3 Long range application High cycle application -5% to -8% Since 1980 GE CFM56-5/7 CFM International is 50/50 joint venture with Snecma (SAFRAN Group) TECH Insertion and LEAP are registered trademarks of CFM International 26

27 Efficiency gains in engine technology Relative fuel consumption 80% 70% 60% 50% 40% -32% Since 1960 CF6 CFM56-3 Long range application High cycle application -5% to -8% Since 1980 GE CFM56-5/7-6% to -15% Since 1980 GEnx TECH Insert TM 2010 TECH Insert TM CFM International is 50/50 joint venture with Snecma (SAFRAN Group) TECH Insertion and LEAP are registered trademarks of CFM International 27

28 Efficiency gains in engine technology 80% -32% Since % to -8% Since % to -15% Since % to -25% Since 2008 Relative fuel consumption 70% 60% 50% CF6 CFM56-3 Long range application GE90 CFM56-5/7 GEnx TECH Insert TM LEAP TM High cycle application 40% TECH Insert TM CFM International is 50/50 joint venture with Snecma (SAFRAN Group) TECH Insertion and LEAP are registered trademarks of CFM International 28

29 Cleaner, quieter, faster, affordable Fuel consumption Emissions Noise Cost of ownership Reliability a product of ecomaginationsm 29

30 Commitment to technology investment R&D investment $1.1B $1.2B $1.3B Technology focus areas Aerodynamics Materials Combustion 30

31 Major technology enablers - Aerodynamics 3-D Aero >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 31

composite fan blade GEnx composite fan blade and

32 Major technology enablers - Materials Periodic Table GE36 UDF unducted, composite blades GE90 composite fan blade GEnx composite fan blade and case High temperature composites (CMCs) 80 s 90 s 00 s Next 32

33 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 33

34 Engine architecture options - Leading-Edge Aviation Propulsion (LEAP) % Noise Reduction 60% CFM56-7 * 0 Base 5 10 Advanced turbofan % Improved Fuel Burn Open Rotor 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 34

35 Reinvesting technology in today s fleet 80 s Aero & Material Upgrades 90 s 00 s Engine Technology Systems Technology Flight deck/fms Retrofit 35

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

36 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 36 International Society of Airfinance Transport Journal Aircraft Summit Trading

Climate change challenge

Climate Change & GE s ecomagination Strategy Vijayant Singh Climate change challenge Why an aviation issue emissions are growing Ground level partially regulated Targeted smog and ozone control: NOx, HC,