General Electric to trisect and transition to aviation
The F110-GE-129 engine is the only engine tested and integrated on the fly-by-wire F-15EX. (Image: General Electric)
General Electric will divide into three separate companies, with a focus on healthcare, energy and aviation respectively.
General Electric announced on 9 November plans to divide into three separate, industry-leading, global public companies.
GE intends to spin-off Healthcare in early 2023, while GE Renewable Energy, GE Power and GE Digital will combine into one business in early 2024.
The remaining body of GE will transition into an aviation-focused company, shaping the future of flight.
GE Aviation is an important supplier of engines for many air forces. It has been awarded a number of significant contracts this year, including a $1.5 billion contract to supply F110 engines for the USAF’s Boeing F-15EX Eagle IIs announced 29 October.
This division is occurring as part of a restructuring project to reduce debt and reassure investors, a decision that has already paid off as stocks soared following the announcement.
It is now on track to reduce debt by more than $75 billion by the end of 2021 and bring its net-debt-to-EBITDA ratio to less than 2.5x in 2023.
As a result, GE is in a strong position to form three well-capitalised, investment-grade companies.
Fears have been raised over the impact on the UK submarine manufacturing infrastructure, as GE tried, unsuccessfully, to move facilities over to France in 2019.
Jeremy Quin addressed concerns during a recent defence committee, he stated: ‘I am pleased to confirm that there is a guarantee in place that the propulsion business [remains in Rugby] until 2024’ and added the Enterprise Act gives the power to intervene should it be necessary.
You may also like
More from Air Warfare
-
![Canadian observer status reinforces GCAP’s strength in emerging ‘middle power’ bloc]()
Canadian observer status reinforces GCAP’s strength in emerging ‘middle power’ bloc
The significant setback seen by FCAS earlier this year has secured GCAP’s position as Europe’s future sixth-generation fighter, while Canada’s potential observer status could push the programme into the next stage.
-
![UK air focus: Drone spending trails European frontline states despite $10.46 billion valuation]()
UK air focus: Drone spending trails European frontline states despite $10.46 billion valuation
Despite the UK having the third-largest military UAV market in Europe, the country appears to be underinvesting in the capability relative to the size of its economy, particularly when compared with Baltic and eastern European states.
-
![Proteus: Forging the future of autonomous rotorcraft]()
Proteus: Forging the future of autonomous rotorcraft
As the home of British helicopters, Leonardo has worked with the UK Ministry of Defence for over a decade to advance technologies underpinning uncrewed rotorcraft. Today, in partnership with UK Defence Innovation and the Royal Navy, Leonardo is spearheading the next step in that journey: from remotely piloted technologies to fully autonomous systems.
-
![US Air Force to add new capabilities to its in-service and future T-7A fleet]()
US Air Force to add new capabilities to its in-service and future T-7A fleet
As the T-7A programme recovers from delays and rising costs, the USAF is signalling new opportunities in anti-jamming GPS, collision avoidance, advanced flight controls and pilot interface improvements.
-
![“Fifth-gen capability without the cost”: how autonomous strike can change the face of air warfare]()
“Fifth-gen capability without the cost”: how autonomous strike can change the face of air warfare
In Conversation… Armor Harris, Senior Vice President for Aircraft at Shield AI, talks to Shephard’s Gerrard Cowan about why cost-effective autonomous aircraft are a game-changer for air forces worldwide, and the key roles played by VTOL and AI as enabling technologies.
-
![Additional delays might hit Pentagon’s critical air programmes, GAO warns]()
Additional delays might hit Pentagon’s critical air programmes, GAO warns
B-52 modernisation, Sentinel, MH-139A, T-7A and Air Force One replacement are among the US Air Force programmes the GAO says remain at risk of further schedule slips and cost growth due to acquisition and management challenges.
