General Electric Company (GE - Free Report) has been selected as the sole engine maker by The Boeing Company (BA - Free Report) for its entire fleet of its forthcoming 777X plane. The wide-bodied 777 plane is arguably the most profitable jets for Boeing in terms of sales and consequently, it is trying to maintain the success with an updated version that consumes less fuel and carries more passengers.
For the earlier versions of 777, the engines were manufactured by Rolls Royce Holdings plc (RR.L) and Pratt & Whitney, an operating segment of United Technologies Corp. (UTX - Free Report) . However, General Electric edged out its rivals to become the only supplier of engine parts for the longer-range versions that went into service in the early twenty first century.
The new breed of 777X jets is expected to be operational by the end of the current decade, although speculations are rife about the timing of its actual entry as Boeing is presently entangled in resolving the crisis related to the grounding of its 787 Dreamliner jets. Nevertheless, the selection of General Electric as the engine maker of 777X jets should augur well in strengthening its long-term business association with Boeing. In addition, this is also likely to augment the revenue for General Electric with a steady demand for the 777X jets.
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 across the world.
Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. GE Aviation is a leading 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) while one of its peers, Jardine Strategic Holdings Ltd. , retains a Zacks Rank #1 (Strong Buy).