New GE Aerospace Unit to Focus Heavily on Aviation Recovery

GE Engine test
Photo Credit: US Air Force

LONDON – Following their presence, at the 2022 Farnborough Air Show, the company announced that it will focus heavily on the aviation industry, as this period poses threats and opportunities in the recovery of the industry.

GE says that it will be ‘laser-focused’ on the recovery of the airline industry, and is now becoming more customer-centric than ever before. The U.S high-tech conglomerate announced that the rebranding of GE Aviation as GE Aerospace will certainly give its customers a morale boost and a much-needed rebranding of the company.

Other General Electric business units such as Energy and Healthcare have certainly improved the business’s balance sheet in recent years, thus relieving some of the company’s debt pressure.

GE’s other business unit, GE HealthCare is now prepping for a NASDAQ listing in the first quarter of 2023. The new energy business spin-off GE Vernova will be followed in 2024. 

‘Laser focused’ on recovery

Moreover, General Electric also said it is ‘laser-focused’ on assisting other airline customers to recover from the pandemic, and aiding airlines to ride through the post-pandemic shockwaves, including high-energy prices, the Russian-Ukrainian war. labour shortages and fleet flexibility.

GE has offered to ready offer its helping arm in the disciplines of increasing production rates for aircraft engines and parts and becoming more attentive in the after-market services. 

Lawrence Culp, General Electric group chairman and CEO reiterated that the company is now geared to serve customers efficiently:

“We’re trying to make sure we use our lean capabilities and engineering expertise to bust the bottlenecks to improve [production] capacity and ensure stability and predictability.”

“OEMs don’t want a certain number of engines in one month, and so every day we’ve got GE’s engineers and procurement and manufacturing leaders streamlining processes with vendors and their suppliers so that we can deliver a predictable and stable ramp-up.”

An industry grappling with ‘bounce back’

The CEO has also stated that there major hurdles that have to be crossed, and these are reaching its output targets, confessing that it hasn’t yet achieved mid-year delivery targets for Airbus and Boeing.

Culp also added that it could take well beyond a year and a half for GE’s clients to recover when “the industry is grappling with a bounce back [in post-pandemic demand for flights] at a time of extreme economic pressure.”

Labour and skills scarcity also hinders the aviation industry to grow even further as the industry’s output is being compromised by poor macro conditions.

Culp elaborated: “At a time when we can afford absolutely no inefficiency, we are identifying waste and dropping labour demand and improving yields at the various quality checks. You can’t buy that anywhere.”

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