Aircraft engine provider GE Aerospace plans to bolster its presence in the Middle East following its debut as a standalone public entity after parent company General Electric split into three firms on Tuesday.
GE Aerospace and GE Vernova – the conglomerate’s energy division – commenced trading independently on the New York Stock Exchange on Tuesday. The healthcare arm of the conglomerate split last year.
Russell Stokes, president and CEO of Commercial Engines and Services at GE Aerospace, stated to The National, “In the Middle East, our largest market for wide-body orders globally, the aerospace industry is expanding significantly due to rising demand, with further growth anticipated.”
Mr Stokes highlighted GE Aerospace’s integral role in the UAE’s aviation sector over the past four decades, noting the establishment of various facilities across the country to cater to regional partners’ needs, according to The National News.
At the Dubai Airshow in the previous year, the company secured over 450 engine orders, Mr Stokes mentioned, underscoring GE Aerospace’s collaboration with local teams and maintenance networks to support the region’s aviation aspirations.
He also emphasised the company’s focus on capacity building, job creation, and aiding the region’s transition to 100 per cent sustainable aviation fuel standards.
Middle Eastern airlines are increasingly adopting sustainable aviation fuel to mitigate emissions, viewed as pivotal in achieving the industry’s net-zero target by 2050. Emirates conducted a successful demonstration flight powered entirely by sustainable aviation fuel in January last year.
Since the global financial crisis, General Electric has faced challenges and has been streamlining its conglomerate structure, including divesting most of the GE Capital finance arm. In recent years, GE has made significant efforts to strengthen its business, notably reducing over $100B in debt since 2018.
In November 2021, GE’s CEO Larry Culp announced the conglomerate’s division into three separate companies, focusing on healthcare, power, and aviation. The spin-off of GE HealthCare took place in January last year.
Mr Culp, also the chairman of GE Aerospace, remarked, “With the successful launch of three independent, public companies now complete – today marks a historic final step in the multiyear transformation of GE.”
GE Aerospace, boasting an installed base of approximately 44,000 commercial engines worldwide, generated about $32B in adjusted revenue last year, with 70 per cent coming from services.
Meanwhile, GE Vernova, now an independent company, aims to accelerate the energy transition towards a more sustainable future, stated Scott Strazik, CEO of GE Vernova, with over 80,000 employees across more than 100 countries.