Demand for General Electric's jet engine way up worldwide
Powered by overseas orders, particularly those from China and India, sales grew nearly 15 percent from 2006 to 2007 for the Evendale-based GE Aviation, a division of the Connecticut conglomerate.
"While U.S. carriers reduced capacity slightly last year, other regions of the world are growing," said chief marketing officer Chet Fuller.
GE Aviation also has a record number of engines on order through 2012 -- the third record- orders year in a row -- promising steady sales for the company and work for its 7,700 employees in the next few years. GE is the ninth-largest employer in the region.
Doug Moormann, vice president of economic development for the Cincinnati USA Regional Chamber said GE sales fuels the broader economy and dominates the area's thriving aerospace power and propulsion jobs segment.
"They're like a tent pole. GE Aviation is the foundation for one of the strongest industrial clusters in this region," he said.
The company employs highly paid engineers and executives who pump money into the local economy and attracts contractors and consultants offering jobs, he said.
Although North American engine orders dropped 7 percent in 2007 compared with 2006, European orders increased 5.6 percent. Sales to countries in the Middle East and Africa region more than doubled for GE Aviation in 2007. The company sold about $10 billion worth of engines during the Dubai Airshow alone.
The top selling engine, produced by a joint venture with France's Snecma, powers mid-range, single-aisle jets such as Boeing 737s and Airbus A320s, which now represent nearly two-thirds of the world's passenger jet market. Industry experts say airlines' ongoing struggle with soaring fuel prices has prompted many companies to switch to smaller jets.
Analysts say airlines and aviation thrive in strong economies that rely on air travel. Myles Walton, an analyst with CIBC Markets, said there is a robust demand for airplanes in emerging economies, even as U.S. and European airlines struggle to turn a profit.
"Emerging markets in India, China and the Middle East are driving demand for aircraft," he said, adding that 83 percent of Boeing's deliveries are going to non-U.S. customers.
GE is due to report its full-year financial results Friday.
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