GE Aviation Systems, an operating unit of General Electric Company (GE - Analyst Report), has recently procured a joint venture aviation contract worth $145 million from Tunisian airline company Syphax Airlines. Launched in 2011, Syphax operates in domestic routes as well as across international locations such as France, Germany, Libya and Turkey.
The private airline operator selected LEAP-1A and CFM56-5B engines that are manufactured by CFM International for three of its Airbus A320neo and three Airbus A319/A320ceo aircrafts, respectively. The first of the engines for A320ceo is likely to delivered in 2015, while that of the A320neo aircraft is slated to begin in 2019. With the new line of aircrafts, Syphax expects to provide easy access from two of its leading hubs, the Sfax-Thyna International Airport serving Sfax city in Tunisia, and the Tunis-Carthage Airport serving Tunis.
CFM International is a 50-50 joint venture between Snecma S.A., a French multinational aircraft manufacturer and subsidiary of Safran SA (SAFRY); and GE Aviation Systems, which typically develops tubes, ducts and manifolds for the LEAP engine in its Dayton facility. The company is currently developing a new $51 million research and development centre in Dayton to augment its new product line.
General Electric is one of the largest and the most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products, it serves customers in more than 100 countries and employs more than 287,000 people worldwide.
Its segments include Energy Infrastructure, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital. Evendale-based GE Aviation Systems is a premier supplier of commercial and military jet engines and components. It also provides avionics, electric power, and mechanical systems for aircraft along with an extensive global service network to support these products.
General Electric currently has a Zacks Rank #3 (Hold). We have a long-term Neutral recommendation on the stock.