The most popular VIP customer has become GE's larg

2022-07-24
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According to foreign media reports, as GE said, this century old giant is making progress in solving some of the most difficult problems in the history of the group, but its most important aviation manufacturer customers seem to be dragging down this process, Because the long grounding of Boeing's 737 Max aircraft has begun to put pressure on GE's financial statements

as a long-term Aerospace supplier, it is also one of the major buyers of commercial aircraft. General Electric warned on Wednesday that due to the small number of aircraft engines produced by its recent factory and the inability to obtain full payment, the grounding of Boeing 737 Max may cause the group to lose cash flow as much as $1.4 billion this year

it is reported that the Boeing 737 Max model is completely powered by the leap engine jointly manufactured by GE and Safran SA

"only when Boeing delivers the aircraft can we get the compensation for these engines. This is actually a problem of cash delay." Said jamiemiller, GE's outgoing chief financial officer

for the current general electric, this means that your innovative best partner company will not be able to achieve the expected 6-step 3: after the installation, the revenue of US $billion in the first half of this year. If the 737 Max aircraft continues to be grounded, the company will lose another $400million each quarter in the second half of the year

in this regard, Larry cup, CEO of General Electric Company, said: "if the 737 Max does not go back, the loss of $400million per quarter will most likely occur." At present, GE has revised its annual financial forecast, saying that due to the grounding of 737 max, the company expects cash flow to be between $1billion and negative $1billion

in fact, GE has slowed down the production pace of engines used in 737 Max this year. The company also produces avionics and other components for 737 max. Moreover, the project is the main driving force for the growth of the company's aviation business. The aviation sector contributed $3billion to GE's industrial profits of about $5billion in the first half of this year. In addition to 737 max, leap engines are also used in some Airbus models and have attracted more than 17000 orders

johninch, an analyst at Gordon haskett, an investment research company, said: "Ge is closely related to Boeing's narrow body aircraft business. Once the single channel 737 Max model is approved to go around, Boeing may need to discount the aircraft catalog price, which may also mean that GE will eventually pay less money.

"Even if everyone thinks things will go smoothly, you may still see new problems in the long story of the aviation industry." Yingqi said that at present, the aviation department is the highest Revenue Department of General Electric, which supports the performance of the group. In recent years, General Electric has been trying to deal with serious losses in its core energy department and financial department. These problems have forced General Electric to sharply cut dividends and seek to sell its main business units

Boeing has said that it hopes to restart the delivery of the new 737 Max aircraft in the fourth quarter. However, some government and industry officials predict that the 737 Max will not operate again until at least next year. After two fatal air accidents in the past year, 737 Max has been banned from commercial flights by regulators since March this year

in this context, Boeing was forced to reduce the monthly output of 737 Max from 52 to 42 in April. Boeing executives recently warned that if regulators do not approve the aircraft to resume service before the end of this year, Boeing will further slow down or stop producing the aircraft. Some data show that the shutdown of 737 Max will reduce the growth rate of US GDP by about 65%, which is equivalent to the impact of long-term government shutdown or major natural disasters

"the reason behind the fact that our production level is lower than expected this year is obvious." Kurp said, but he declined to comment on the consequences of the possible slowdown or complete shutdown of 737 Max production

in addition, spirit AeroSystems, which is responsible for the production of fuselage and other parts for 737 max, said on Wednesday that as part of its efforts to cut costs by 5%, 200 workers have voluntarily retired to offset the impact of the 737 Max production reduction. Boeing said that at present, it has not required the conversion rate to be low, and it has laid off staff due to the grounding of 737 max

dual identity

in addition to being a supplier, Ge is also one of the largest customers of this aircraft manufacturer. The former financial department operates GECAS, one of the largest aircraft leasing companies in the world. According to the documents submitted by GE, GECAS owns 29 737 Max aircraft, of which 25 are leased to customers who are obliged to continue paying even during the grounding period

the document also shows that GECAS has paid part of the payment for another 150 aircraft and promised to purchase another 19 aircraft according to the sale and leaseback contract signed with the airline. According to the document, by the end of 2018, GECAS had owned or ordered more than 1850 aircraft

overall, GE has 737 Max worth $2.1 billion. As the Group believes that these aircraft will be delivered and go around smoothly in the end, this part of the cost is not deducted in the first half of the year

at the same time, Boeing recently delayed the first flight of the 777x long-distance passenger plane, blaming it on the new engine problem of General Electric. It is reported that the "compressor stator" of ge9x engine, which provides power for the 777x, is prematurely worn and needs to be redesigned

Ge said that it had redesigned the component with faster wear than expected and was working with Boeing to solve the problem

Dennis muilenburg, chief executive officer of Boeing, said last week: "in view of the good performance of the aircraft in pre flight tests and the progress we have made in terms of engines, this delay in the first flight is clearly disappointing, and the engine problem also adds great risks to our established schedule."

Boeing now hopes to test fly the 777x next year, effectively defrost once in three days, and complete the delivery of the first batch before the end of 2020. (drew)

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