GE 2015 Annual Report Download - page 77

MD&A SEGMENT OPERATIONS | AVIATION
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AVIATION
BUSINESS OVERVIEW
Leader: David Joyce
Headquarters & Operations
x Senior Vice President, GE and President &
CEO, GE Aviation
x Over 30 years of service with General
Electric
x 21% of segment revenues in 2015
x 23% of industrial segment revenues
x 31% of industrial segment profit
x Headquarters: Cincinnati, OH
x Serving customers in 120+ countries
x Employees: approximately 45,000
Products & Services
Aviation designs and produces commercial and military aircraft engines, integrated digital components, electric
power and mechanical aircraft systems. We also provide aftermarket services to support our products.
x Commercial Engines ± manufactures jet engines and turboprops for commercial airframes. Our commercial engines power
aircraft in all categories; regional, narrowbody and widebody. We also manufacture engines and components for Business and
General Aviation segments.
x Commercial Services ± provides maintenance, component repair and overhaul services (MRO), including sales of replacement
parts.
x Military ± manufactures jet engines for military airframes. Our military engines power a wide variety of military aircraft including
fighters, bombers, tankers, helicopters and surveillance aircraft, as well as marine applications. We provide maintenance,
component repair and overhaul services (MRO), including sales of replacement parts.
x Systems ± provides components, systems and services for commercial and military segments. This includes avionics systems,
aviation electric power systems, flight efficiency and intelligent operation services, aircraft structures and Avio Aero.
x We also produce and market engines through CFM International, a company jointly owned by GE and Snecma, a subsidiary of
SAFRAN of France, and Engine Alliance, LLC, a company jointly owned by GE and the Pratt & Whitney division of United
Technologies Corporation. New engines are also being designed and marketed in a joint venture with Honda Aero, Inc., a division
of Honda Motor Co., Ltd.
Competition & Regulation
The global businesses for aircraft jet engines, maintenance component repair and overhaul services (including parts sales) are highly
competitive. Both U.S. and non-U.S. markets are important to the growth and success of the business. Product development cycles are
long and product quality and efficiency are critical to success. Research and development expenditures are important in this business,
as are focused intellectual property strategies and protection of key aircraft engine design, manufacture, repair and product upgrade
technologies. Aircraft engine orders and systems tend to follow civil air travel and demand and military procurement cycles.
Our product, services and activities are subject to a number of regulators such as by the U.S. Federal Aviation Administration (FAA),
European Aviation Safety Agency (EASA) and other regulatory bodies.
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