Frieghter conversion program, new helicopter orders and A320neo orders round out a busy week for GE's commercial aircraft financing business
NORWALK, CT - June 23, 2015 - GE Capital Aviation Services (GECAS), the aviation leasing and financing arm of GE, announced this week at the 2015 Paris Air Show plans for continued growth with the launch of a new freighter conversion program and sizeable orders for new aircraft and helicopters.
These announcements reflect a strategic move forward for GECAS as it continues to build upon its diverse portfolio of aircraft, offering the widest range of aviation solutions in the industry to meet market demands. GECAS’ presence at the Paris Air Show demonstrates a commitment to acquiring the most innovative commercial aviation technologies to offer the best solutions to customers.
“GECAS continues to see extensive growth in our customer base in emerging and established markets around the world. By expanding our commercial fleet and diversifying our business solution offerings, we are poised to meet that growth and adapt to the changing demands of the aviation industry,” said Norman C.T. Liu, GECAS President and CEO.
GECAS’ Cargo Aircraft Group announced Friday the launch of its Boeing 737-800NG passenger-to-freighter conversion program. Conversion of the 737-800 will allow GECAS to meet customer needs for a modern, narrow-body freighter and provide opportunities for replacement and growth. Up to 20 of GECAS’ fleet of Boeing737-800NG aircraft will be converted to freighters, with the first aircraft scheduled for conversion in 2016. The conversions will be performed by AEI Aeronautical Engineers, Inc. at its facilities in the U.S. and China.
“Our 737-800 conversion program will allow air cargo carriers to expand and modernize their fleets with the best-in-class aircraft in the narrow body freighter sector,” said Christopher Damianos, Executive Vice President Specialty Markets at GECAS. “With extensive payload and volume capabilities at a low operating cost, the 737-800 is an ideal choice for a converted freighter.”
At the Paris Air Show, GECAS also announced multiple new aircraft and helicopter orders, marking a significant expansion in the company’s diverse fleet. GECAS President and CEO Norman C.T. Liu and Airbus Chief Operating Officer John Leahy signed an agreement Monday for an order of 60 Airbus A320neo aircraft. This order will bring the total number of A320neo aircraft ordered by GECAS to 120, reflecting the strong market demand for innovative and fuel-efficient aircraft that keep customer operating costs to a minimum.
“The addition of 60 A320neo aircraft to our portfolio is a reflection of the customer demand that we’re seeing for these products,” said Norman C.T. Liu, President and CEO of GECAS. “Our customers have demonstrated a need for reliable and productive aircraft, and the A320neo offers an unmatched solution.”
Milestone Aviation Group, a GECAS company and the global leader in helicopter leasing, announced in Paris this week two major helicopter orders to expand its commercial fleet. Milestone signed an order with Airbus Helicopters for 28 H175s, representing the largest customer commitment for Airbus’ new super-medium-lift rotorcraft.
Since the H175 (previously known as the EC175) entered service last December, it has demonstrated high availability to meet the most demanding oil and gas industry transportation requirements. Milestone’s H175 order is indicative of a long-term commitment to a growing portfolio that provides the most innovative helicopter solutions to customers.
Milestone Aviation Group also signed a letter of intent (LOI) with Bell Helicopter, a Textron Inc. company (NYSE: TXT), to acquire 20 Bell 525 Relentless helicopters. These aircraft will serve Milestone’s lessees around the world in various sectors, including oil and gas, emergency medical service, search and rescue, and utility opportunities.
The Bell 525 Relentless is the world’s first fly-by-wire commercial helicopter, designed to operate safely and reliably in austere environments with decreased pilot workload. The acquisition of these aircraft will provide Milestone customers access to the latest helicopter technology in the super-medium class.
“These two sizeable helicopter orders reflect Milestone’s focus on long-term industry growth,” said Daniel Rosenthal, Milestone’s President. “We are excited about our first order with Bell and believe that the technology of the 525 will be critical in keeping our customers on the edge of innovation. Additionally, the significant addition of the H175 to our portfolio will open exciting new possibilities for our customers in the oil and gas sectors.”
About GE Capital Aviation Services (GECAS)
GE Capital Aviation Services (GECAS) is a world leader in aviation leasing and financing. With over 45 years of experience, GECAS offers a wide range of aircraft types including narrowbodies, widebodies, regional jets/props, freighters and helicopters, plus multiple financing products and services including operating leases, purchase/leasebacks, secured debt financing, capital markets, engine leasing, airframe parts management and airport/airline consulting. GECAS owns or services a fleet of over 2,200 aircraft (1,900 fixed wing/300 rotary wing) in operation or on order, plus provides loans collateralized on an additional 400 aircraft. GECAS serves over 270 customers in over 75 countries from a network of 24 offices. www.gecas.com
GE (NYSE: GE) imagines things others don’t, builds things others can’t and delivers outcomes that make the world work better. GE brings together the physical and digital worlds in ways no other company can. In its labs and factories and on the ground with customers, GE is inventing the next industrial era to move, power, build and cure the world. (www.ge.com)
Dan Whitney
GE Capital Aviation Services
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