mature fleet solutions november 5 , 2015 - aviation...

See tutorial regarding confidentiality disclosures. Delete if not needed. Imagination at work.

Engine Life Cycle Management Anil Mathur Mature Fleet Solutions November 5th , 2015

This is GE Aviation 1 Imagination at work.

See tutorial regarding confidentiality disclosures. Delete if not needed.

Engine Life Cycle Management …….

Highly complex and dynamic decision process

Retirement Deliveries

Fle

et

GE Offerings: 1. OnPoint

2. T&M Overhaul

3. Component Repair

Risk transfer Asset productivity Asset Value Extraction Customer Needs:

1. OnPoint 2. T&M Overhaul 3. Component Repair

4. Workscope Mgmt

5. Upgrades

6. Material Programs

7. Used Material

1. OnPoint 2. T&M Overhaul 3. Component Repair 4. Workscope Mgmt 5. Upgrades 6. Material Programs 7. Used Material

8. Green Time Engines

9. Lease Engines

10. Engine Exchange

11. Part Out/Consignment

EIS Growth Stable Retire

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Investing in Product Improvements: Lowering customer ownership and operating costs

CFM is a 50/50 JV between GE and Snecma

GE90-94 EIS: 1995

Number of Fuel Burn Time on Wing upgrades Improvement Increase 8 8% 2X

8 3% 3X

5 2% 2X

CF6-80C2 EIS: 1988

CFM56 EIS: 1984

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Investing in Component Repair: Lowers shop visit cost thru scrap rate reduction

Why We Develop… ..

• Lowers COO

• Enabler of used material

Why Use GE … ..

• System tested and validated to comply

with OEM engine maintenance manual

• GE offers the most repairs … 12,000+

• Industry leading warranties – Extended warranty also available

• Competitive TAT

• ~1,000 new repairs developed annually

Repairs savings examples

-5/-7 Comb Liner Weld and resize repair

Weld and Resize Multi-hole Outer Liner

Repairs developed Yield

80% cost savings

-7BE HPTB Repairs developed

Chem Strip

Recreate blade tip

Robotic Polish

Advanced Coatings

Yield

80% cost savings

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Used Serviceable Material – GE Aviation used material & CFM Materials

• Availability as retirement rates rise

• Customers preference on final engine SV, and lease returns

• Enables lower cost ‘shorter’ builds at end of life … match ownership horizon

• GE Aviation used material and CFM Materials

− Selling USM for 20+ years

− Best availability

− Global distribution centers

− Highest quality standards

− 100% TRUEngine qualified

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Workscoping: Determines asset value & performance

Optimize for: • Time On Wing

• Cost per event

• Reliability

• Fuel Efficiency

• Asset value

GE’s expertise provides optimal solution with ...

• Global fleet experience

• New, high tech repairs

• Best availability of USM

Used material

LLP savings

Repair & exposure

SV cost

Balance maintenance cost savings …

OEM used

material

SBs & upgrades

LLP build stand

Engine value

… while retaining residual value

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TRUEngine: Maximizes residual value, performance & support

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Designates the engine is OEM configuration

• Maximizes engine performance

• Best reliability

• Expedited product support

• As much as 50% higher residual value

~12,000+ engines enrolled

Engine Residual Value, 3rd Appraiser

PMA/DER OEM

OEM*

TRUEngine cores >2X greater value

Non-OEM*

TRUEngine LLP … for buyers of USM

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Rigorous records check … a necessity Investigation of broker record falsification

Rigorous LLP records audit Optimizes OEM support Maximizes Residual Value Confirming configuration since birth

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Solutions tailored to unique customer needs

OnPointTM

Solutions

Optimizing lifecycle cost via flexibility

• Time-on-wing and cost-per-event risk transfer

• Customized structure and payment options

• Program management and analytics

T&M Overhaul

Optimized cost per shop visit

• Expert workscoping based on customer goals

• OEM engineering combined with experience and analytics

• Performance guarantees

Material Solutions

Best performance, maximum choice

• OEM precision, maximum engine performance.

• Best availability of Used Serviceable Material

• Develop and industrialize more repairs than anyone

Mature Solutions

Broadest expertise & range of offerings

• Engine exchange

• Green time engines

• Lease alternatives

• Thrust/configuration conversions

• Purchase/Lease Back

• End-of-life disposition

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See tutorial regarding confidentiality disclosures. Delete if not needed.

Summary - GE’s Services Promise

1. Operational excellence Keep fleets flying at peak performance

2. Lowest cost of ownership Reducing fuel & maintenance cost

3. Flexibility & choice Customized services for unique needs

4. Highest asset value OEM configuration maximizes performance & support

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See tutorial regarding confidentiality disclosures. Delete if not needed. 10

Thank you for your attention!

For more information: • GEAviation.com/Services

• AviationWeek.com/special-topics-pages/optimizing-engines-through-lifecycle

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